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Scotland is ahead of England when it comes to providing independents with business rates support. But rates relief alone cannot address the full financial challenges faced by pharmacies, warns Harry McQuillan…

Among the key measures is a 15 per cent non-domestic rates relief for retail, hospitality, and leisure premises with a rateable value up to £100,000, capped at £110,000 per business per year for the three-year revaluation cycle.

This represents an expansion of support compared with previous years and will benefit many smaller and independent pharmacies. Business rates remain a significant consideration for community pharmacy, particularly at a time when financial pressures across the sector are acute.

Decisions by governments on fixed costs such as rates directly influence the sustainability of pharmacies and their ability to serve patients and communities effectively.

In England, uncertainty remains around business rates

Community pharmacies operate in a highly regulated environment. Unlike many high street businesses, we cannot simply adjust our offer or pricing to absorb cost increases. Changes to business rates, therefore, have a direct impact on investment in teams, services and the delivery of safe, reliable care.

In England, uncertainty remains around the future direction of business rates. Pharmacies are a vital part of the NHS infrastructure, providing accessible care every day.

Any increase in fixed costs risks diverting resources away from patient-facing services at a time when pharmacies are being asked to do more to support patients and relieve pressure elsewhere in the system.

If the health service is to deliver more care closer to home, the policy environment must enable community pharmacy to play its part. Additional cost pressures, without corresponding support, risk undermining that ambition.

Scottish government’s budget provides greater clarity for pharmacies

The publication of the Scottish government’s budget for 2026–27 provides greater clarity for pharmacies in Scotland.

Among the key measures is a 15 per cent non-domestic rates relief for retail, hospitality, and leisure premises with a rateable value up to £100,000, capped at £110,000 per business per year for the three-year revaluation cycle.

This represents an expansion of support compared with previous years and will benefit many smaller and independent pharmacies. The budget also includes transitional relief to ease the impact of the latest property revaluation, capping year-on-year increases for those most affected.

Alongside modest reductions in the poundage for basic, intermediate, and higher-rate properties, these measures provide targeted support to high street businesses while recognising the pressures pharmacies face.

While this relief is welcome, it is important to be realistic. Business rates remain a significant fixed cost that does not reflect the volume or complexity of care provided. Workforce pressures, rising operating costs and increasing service demands mean that rates relief alone cannot address the full financial challenges faced by pharmacies. 

It is also important to consider classification. Although pharmacies operate on the high street, their primary function is the delivery of healthcare. Policy design should reflect this reality, ensuring that measures intended for retail businesses do not inadvertently undermine essential healthcare provision.

The Scottish budget also commits £22.5 billion to health and social care, the largest settlement to date. This includes £17.6 billion for NHS boards and resources, supporting the delivery of essential services and almost £15.7 billion for local government, underpinning adult social care and public health provision.

For community pharmacies, this level of investment presents an opportunity. Pharmacies already play a critical role in prevention, early intervention, and the management of long-term conditions.

They improve patient access, support public health objectives, and help reduce pressure on GPs and hospitals. To maximise the impact of this investment, pharmacies must be recognised as a core part of the healthcare system and supported accordingly, with appropriate funding, workforce support and long-term contractual stability.

Across England and Scotland, the message from community pharmacy is consistent. Pharmacies are embedded in communities and deliver essential healthcare services every day. Policy decisions on business rates and public funding should reflect that reality.

Protecting community pharmacies from additional cost pressures is not about preferential treatment. It is about safeguarding access to care and ensuring that patients continue to benefit from a resilient and accessible pharmacy network.

In fact, it is about levelling the playing field and bringing community pharmacy into the same bracket as general practice and exempting our network from having to bear the burden of business rates.

The decisions taken now on rates relief and health and social care investment will shape the sustainability of pharmacies and, ultimately, the healthcare available to communities across the UK.

Harry McQuillan is the chairman of Numark.