Community pharmacies across England could face widespread closures as business rate discounts are phased out on April 1st, the National Pharmacy Association (NPA) has warned. 

In a letter to Chancellor Rachel Reeves, the NPA said “many pharmacy businesses will be unable to survive” the planned changes.

The warning follows an NPA report published in 2025 which found that 6 in 10 pharmacies risk permanent closure within a year without additional financial support. The NPA represents about 6000 independent pharmacies across the UK.

Reeves said in the 2024 autumn budget that business rate discounts for sectors including pharmacies would fall from 75% to 40% in 2025-2026, with the temporary relief scheme then due to end in 2026-2027. In her 2025 autumn budget, she confirmed plans for new, permanently lower multipliers from April 2026, alongside transitional relief to limit year-on-year increases.

In 2025-2026, the small business and standard business rates in England stand at 49.9p and 55.5p in the £, respectively. From April 2026, the government plans to introduce a reformed system with lower rates for retail, hospitality, and leisure properties, alongside higher rates for larger and higher-value premises, meaning bills will rise for some businesses even as headline rates fall.

“Despite a welcome uplift last year, we are concerned that many pharmacies are hanging on by their fingertips and this could push them to the brink of collapse, leading to more closures impacting the patients we serve,” said Henry Gregg, chief executive of the NPA.

Pubs to Receive Support, Pharmacies Excluded

The NPA’s letter follows confirmation that pubs will receive additional business rates support in the coming year, unlike community pharmacies.

“It would be indefensible if support was provided to pubs but not to pharmacies, who are fundamental to everyone’s health and deserve fair treatment,” Gregg said. 

Unlike most other high street businesses, pharmacies receive about 90% of their income from the NHS for services such as dispensing and vaccination programmes. This means they cannot raise prices to absorb higher business rates. 

Gregg said pharmacies should be treated as equal partners in the NHS and given the same business rates support as GP practices and NHS dental services.

Funding Uplift Fails to Close Gap

The Treasury said it recognises that lower headline rates will not fully offset rising costs. It has introduced a transitional relief scheme to cap annual increases in business rates until 2028-2029.

“With COVID support ending and valuations rising, we have stepped in to cap bills and help businesses, as part of a £4.3 billion support package,” a spokesperson told Medscape News UK in an emailed comment. 

The Department of Health and Social Care has also committed to increase funding to pharmaceutical services via its Community Pharmacy Contractual Framework from £2.7 billion in 2024-2025 to £3.07 billion in 2025-2026.

However, the NPA said the scale of support remains insufficient.

"Despite a recent uplift, pharmacies still face a yawning £2.6 billion funding gap, with pharmacies closing in record numbers and those still open going to extraordinary and unsustainable lengths to do so,” Gregg said. 

Earlier this week, the NPA called for an above-inflation funding settlement for 2026-2027, contract reform, and a commitment to closing the funding gap. It also urged investment to expand clinical services and changes to end what it described as an “unfair system of clawbacks.” 

Annie Lennon is a medical journalist. Her writing appears on Medscape, WebMD, and Medical News Today, among other outlets.