Pharmacy Funding Announcement: What will the impact on lending be?

On 31 March 2025, the Department of Health and Social Care (DHSC), NHS England (NHSE), and the Pharmaceutical Services Negotiating Committee (PSNC) announced the Community Pharmacy Contractual Framework funding for community pharmacies in England.

The delayed and eagerly awaited announcement suggests a greater commitment from PSNC and central government to work together to recognise the hugely important contribution the pharmacy sector makes to the NHS service provision and the communities it serves.

Headline figures state an increase in funding for 2025/26 to £3.073 billion and a further £215 million to fund the Pharmacy First Scheme. The framework outlines a £617 million boost in-patient services over two years, which are intended to protect pharmacies and make them sustainable businesses that are integral to the longer-term NHS service provisions.

Whilst the headline figures look encouraging and are generally welcome, many pharmacists and their representative bodies see the deal as not going far enough to counteract the impact of rising operational and staffing costs, and that further discussion and an improvement of the funding uplift needs to be given. The National Pharmacy Association (NPA) announced it would be carefully considering the details of the new community pharmacy contractual framework (CPCF) funding deal, with consideration given to whether it will continue to recommend collective action, which would include starting a process of reducing opening hours and patient services.

What does this mean for those looking to acquire pharmacies and how is the sector perceived by banks and funders in the market?

Discussions I’ve had with key lenders in the market suggest that there is still a positive appetite from banks to support well-considered and structured lending applications.

They expect full consideration to be given to the changing operating costs that pharmacies will be experiencing and are receptive to considering new revenue streams that a greater range of services can bring.

Robust business plans and financial forecasts, alongside evidence of past performance, mean that positive appetite exists in banks considering and supporting loan applications for suitably experienced pharmacists. This is especially the case for those with prescribing capabilities who are best suited to provide a full range of NHS and private service provision to their communities.

Whilst the new framework announcement will not be the answer for all pharmacists and their businesses, there are market opportunities for first-time buyers and expanding groups that perhaps would not exist in a different economic situation. We have seen evidence of pharmacies prospering under entrepreneurial ownership and a realisation that a new dawn exists within the sector.

For a discussion about how the funding agreement might impact your ability to acquire a pharmacy business or grow your existing group, contact: gary.boyce@christiefinance.com