UK Government's Drug Deal with US Raises Concerns Over NHS Budget
The UK government's 10-year drug pricing deal with the Trump administration will come out of the National Health Service (NHS) budget, not the Treasury. The estimated additional cost for the first three years is £1 billion, but campaigners fear that this could rise to as much as £9 billion per year by 2035.
The government's Science Minister, Patrick Vallance, has confirmed that the costs will be borne by the Department of Health and Social Care (DHSC), which funds the NHS in England. This move is seen as a departure from previous statements that suggested the Treasury would foot the bill.
Critics argue that this could lead to cuts in NHS services as the service struggles to absorb the increased costs. The Liberal Democrats have described the agreement as a "Trump shakedown" of the NHS, with the government trying to placate Trump by agreeing to higher drug prices.
The deal applies only to newly developed medicines and not to established generic drugs, which make up most of the NHS's £20 billion annual spending on pharmaceuticals. However, campaigners warn that even this may not be enough to cover the rising costs.
In a letter to the Commons science committee, Vallance stressed that frontline services will remain protected through record funding secured for the DHSC. However, Dr Layla McCay, director of policy at the NHS Confederation and NHS Providers, warned that cuts are inevitable and that NHS trust bosses "will be concerned to note" that DHSC budgets will be used.
The government has agreed to double the UK's spending on all drugs by 2035 from 0.3% to 0.6% of GDP. However, campaigners argue that ministers are still refusing to set out how much they will have to pay for drugs in the long term.
"The bill will grow every year," said Tim Bierley of Global Justice Now. "It's incredible that ministers continue to hide behind the short-term costs of this deal when they know the bill will grow every year."
The government must come clean about the true costs of the deal, campaigners argue, and stand up to corporate interests working with Trump to loot the health system.
The UK government's 10-year drug pricing deal with the Trump administration will come out of the National Health Service (NHS) budget, not the Treasury. The estimated additional cost for the first three years is £1 billion, but campaigners fear that this could rise to as much as £9 billion per year by 2035.
The government's Science Minister, Patrick Vallance, has confirmed that the costs will be borne by the Department of Health and Social Care (DHSC), which funds the NHS in England. This move is seen as a departure from previous statements that suggested the Treasury would foot the bill.
Critics argue that this could lead to cuts in NHS services as the service struggles to absorb the increased costs. The Liberal Democrats have described the agreement as a "Trump shakedown" of the NHS, with the government trying to placate Trump by agreeing to higher drug prices.
The deal applies only to newly developed medicines and not to established generic drugs, which make up most of the NHS's £20 billion annual spending on pharmaceuticals. However, campaigners warn that even this may not be enough to cover the rising costs.
In a letter to the Commons science committee, Vallance stressed that frontline services will remain protected through record funding secured for the DHSC. However, Dr Layla McCay, director of policy at the NHS Confederation and NHS Providers, warned that cuts are inevitable and that NHS trust bosses "will be concerned to note" that DHSC budgets will be used.
The government has agreed to double the UK's spending on all drugs by 2035 from 0.3% to 0.6% of GDP. However, campaigners argue that ministers are still refusing to set out how much they will have to pay for drugs in the long term.
"The bill will grow every year," said Tim Bierley of Global Justice Now. "It's incredible that ministers continue to hide behind the short-term costs of this deal when they know the bill will grow every year."
The government must come clean about the true costs of the deal, campaigners argue, and stand up to corporate interests working with Trump to loot the health system.