Mr Gagan Mohindra

Mr Gagan Mohindra

Conservative — South West Hertfordshire

Speaking in the House of Commons on 9 September 2026

Debate

Pharmacies: Government Funding

Contribution

I am very conscious that I have a former Chancellor and Prime Minister, my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak), sitting to my left; he might argue for keeping it simple. I would argue that a pharmacy’s primary business is healthcare related, and that either we support our healthcare system or we do not. Doing it piecemeal is not in the best interests of what some of my residents regard as the frontline of the NHS system. In the past 12 months alone, more than 600 neighbourhood pharmacies have closed. That looks set to worsen, because business rates relief for retail businesses has been removed for this financial year—a significant shift from the 75% business rates relief afforded to retail businesses in 2024 under the previous Conservative Government. Although GP practices can have their business rates reimbursed by the NHS, and NHS dental practices can also qualify for reimbursement, community pharmacies receive no equivalent compensation, despite providing NHS services every day, as has been mentioned. How is this fair or reasonable at a time when the Government are shifting more responsibility to the sector? I have also been in contact with Community Pharmacy Hertfordshire. Although the 2026-27 community pharmacy contract provides additional investment in community pharmacies, it still falls short of what is needed to put the framework on a sustainable financial footing. Research conducted by the Independent Pharmacies Association, which has done a brilliant campaign on this matter, shows that an average pharmacy dispensing 10,000 items a month still faces a shortfall of £56,000 against what would be needed to keep pace with inflation—a very stretched financial situation. When I met with the previous Minister for Care, the right hon. Member for Aberafan Maesteg (Stephen Kinnock), earlier this year, I was disappointed that he could not outline clear steps as to how that situation could be alleviated. Without a sustainable, longer-term funding settlement, more pharmacies risk closing at the same time as the NHS is asking the sector to do more. It is also disappointing that the Government have delayed Pharmacy First payments. Under the previous Conservative Government, the Pharmacy First initiative was introduced to allow community pharmacies to support patients with common conditions, reducing the pressure faced by our GPs. Now, many pharmacies I speak to have said they are struggling to deliver this service as a result of the Government’s withholding of funding. The impact of pharmacies in delivering primary care should not be underestimated. Shifting more flu vaccinations into pharmacies could free up around 4.5 million GP appointments each year. In conclusion, pharmacies are accessible and already have the infrastructure and clinical expertise to provide more care closer to home. However, patients will benefit from an expanded role for community pharmacies if their pharmacy stays open. Currently, with unsustainable operating costs and limited Government funding, that has become increasingly difficult. Without the financial support to deliver these services, many pharmacies risk closing. If the Government want to shift care from hospitals into communities, the funding must follow.

More from Mr Gagan Mohindra

Other recent Hansard contributions by the same speaker.

About Hansard

Hansard is the official verbatim record of proceedings in the UK Parliament. Every word spoken in the Commons and Lords is recorded and published — this page is a single contribution from that record.

For Mr Gagan Mohindra's full parliamentary record including voting history, expenses and all other contributions, see the Mr Gagan Mohindra report card.