Breaking down the budget
What it means for you and how we can help
Chancellor Rachel Reeves’ first Budget has landed at a time when community pharmacies are already under enormous strain. Rising costs, workforce challenges and persistent underfunding continue to shape the reality for pharmacy owners across the UK.
While the Budget makes commitments to reducing NHS waiting lists and strengthening frontline care, it also introduces new financial pressures — particularly through minimum wage increases.
In this article, we break down what the Budget means for pharmacies and how EMT Healthcare can help relieve some of the operational and financial strain through smarter supply choices, cost-effective consumables, and support for retail growth.
1. Rising Wage Costs: A Necessary but Heavy Burden
A key headline from the Budget is the 4%+ increase to the minimum wage. While recognising the value of skilled pharmacy teams is vital, the financial impact on already stretched businesses is substantial.
Henry Gregg, Chief Executive of the NPA, summarises it clearly:
“Pharmacy staff across the country are absolutely deserving of a pay rise, but the increases announced today will add significantly to the financial pressures pharmacies are under… Adding four per cent-plus to the minimum wage makes the financial mountain they are facing even bigger.”
For the typical community pharmacy, wage bills were already accounting for the largest single area of expenditure. The uplift will push this further, forcing some owners to make difficult decisions about services, staffing, or opening hours.
2. Historic Underfunding Still Takes Its Toll
Despite a modest Spring funding increase, the sector still faces what the NPA describes as “the legacy of historic underfunding” — a legacy that has contributed to the closure of more than 1,000 pharmacies in recent years.
Operating margins are thin. Essential service delivery is increasing. Costs continue to rise.
This Budget offers no immediate relief to that core funding gap.
3. Opportunity: A Bigger Role in Reducing NHS Pressure
Rachel Reeves emphasised the role of community-based services in easing NHS pressures. The NPA echoes this, urging government to direct savings from NHS administrative reforms back to the frontline:
“The Government has promised that reorganising NHS England and other administrative reforms will unlock a billion pounds a year by the end of this parliament… the NPA wants any savings to go straight to the front line of care in our communities, which includes our beleaguered community pharmacies.”
How EMT Healthcare Can Support Pharmacies
While EMT can’t influence national funding decisions, we can help pharmacies control the costs they can control, strengthen retail performance, and keep essential dispensing running smoothly.
1. Lowering Costs on Everyday Dispensing Consumables
With wage increases and utilities rising, pharmacies need certainty and savings where possible.
EMT Healthcare helps by:
- Offering competitive pricing on core consumables (bags, labels, vials, wipes, paper rolls, gloves, etc.)
- Providing price-locked bundles to give predictable costs
- Reducing waste through high-quality, reliable products
- Preventing downtime by keeping essentials always in stock
When margins tighten, savings on consumables can make a measurable difference.
2. Helping Pharmacies Grow Retail Income
Retail can play a bigger role in offsetting increased operating costs — but only if the mix is right.
EMT supports retail growth through:
- A wide range of fast-moving OTC and front-of-shop products
- Seasonal ranges that boost basket value (allergy, winter health, travel health etc.)
- High-margin essentials that drive profitability
- Guidance on category performance and product selection
Even a small increase in retail sales per customer can help absorb staffing and operational cost rises.
3. Reducing Administrative Pressure Through Reliable Supply
With teams stretched, pharmacies cannot afford to chase multiple suppliers or handle stock inconsistencies.
EMT helps streamline your supply chain:
- Consolidated ordering – fewer suppliers, fewer deliveries, less admin
- Predictable lead times
- Consistent product quality
- Dedicated account support
This reduces the hidden labour cost of procurement, stock management, and problem-solving.
4. Supporting New Clinical Services Through the Right Consumables
As pharmacies expand services — Pharmacy First, hypertension checks, contraception, travel health — they require consistent access to:
- Clinical consumables
- Diagnostic tests
- Sterile equipment
- Packaging and recording materials
- Patient information products
EMT ensures pharmacies have the necessary resources to deliver services confidently and compliantly.
Conclusion: A Tough Budget, but Practical Support Can Make a Difference
Rachel Reeves’ Budget reinforces the importance of community pharmacy — but it also intensifies financial pressures that cannot be ignored.
While large-scale funding reform must come from government, pharmacies do have levers they can pull today: smarter procurement, efficient consumables, better retail performance, and streamlined supply chains.
At EMT Healthcare, our goal is simple:
To help pharmacies thrive and to stay resilient, profitable, and fully equipped to serve their communities.
If you would like to chat to us about an existing account or would like to set up a new account with us please get in touch! Our team are here to help.
