The last Conservative Government took clear steps to ensure the NHS would be protected during negotiations for any international trade agreement with the United States. In 2020, the then Department for International Trade published the UK’s objectives for a trade agreement with the United States, which stated:
“The NHS will not be on the table. The price the NHS pays for drugs will not be on the table. The services the NHS provides will not be on the table. The NHS is not, and never will be, for sale to the private sector, whether overseas or domestic.”
As part of the Economic Prosperity Deal between the US and UK, the two countries agreed to “negotiate significantly preferential treatment outcomes on pharmaceuticals and pharmaceutical ingredients”, whilst the UK agreed to “endeavour to improve the overall environment for pharmaceutical companies operating in the United Kingdom.”
However, since taking office, I am very concerned this Labour Government’s ill-thought out economic and tax policies have actively contributed to several pharmaceutical companies withdrawing or reducing their investments into the UK, so putting our country in a worse bargaining position when negotiating with the US on medicine pricing.
In 2023, the voluntary scheme for branded medicines pricing, access and growth (VPAG) was agreed by the last Government, NHS England and the Association of the British Pharmaceutical Industry (ABPI) and was due to run until 31 December 2028. The VPAG was expected to save the NHS £14 billion across that five-year period.
The Minister for Science, Lord Vallance, has now publicly stated that “price increases are going to be… necessary … Where the additional money would come from to pay higher prices is a matter for the Department of Health and the Treasury to figure out.”
The Labour Government must urgently clarify its position on medicine pricing and reach an agreement with the pharmaceutical industry that ensures UK patients remain able to access the most innovative drugs through the NHS.
In addition, it has been reported the Government has considered raising the threshold for deciding whether a drug is cost-effective, which would be highly likely to further increase the amount the NHS spends on medicines.
My Shadow Ministerial colleagues and I will be holding the Government to account for defending the interests of the NHS and UK taxpayers. Finally, please be assured I remain fully committed to the principle that the NHS will always provide healthcare free at the point of delivery, regardless of ability to pay.
