NHS to hand drug giants billions more for medicines as Starmer rips up pricing rules
Donal Trump threatened to slap a 100 percent tariff on Britain's pharmaceutical industry, sparking fears drug firms could leave the UK.
The NHS could be forced to spend billions of pounds more on medicines under the Prime Minister’s plans to prevent an exodus of drug firms from the UK.
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Under current rules, the NHS considers a drug good value for money if it costs between £20,000 and £30,000 for every extra year of good-quality life it delivers to a patient.
But Sir Keir Starmer is mulling over a plan that would raise this threshold by 25 percent.
While this would make it easier for more expensive drugs to reach patients, it would see the health service hand more cash to pharmaceutical companies.
The move would also help protect Britain’s position as a world leader in life sciences, Number 10 sources say.
It comes as the Government scrambles to stave off a mass exodus from the UK after US President Donald Trump threatened tariffs of up to 100 percent on the sector.
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Mr Trump has repeatedly hit out at the UK’s low medicine prices, which he claims are subsidised by US consumers. This has sparked tensions and complicated the prospect of a trade deal.
British drug giants such as AstraZeneca and GSK are hoping to strike deals with the Trump administration to avoid tariffs on their exports to the United States.
Ministers are reportedly locked in a stand-off over where to find billions of pounds to pay more for the drugs.
Science Minister Patrick Vallance has previously suggested the NHS would need to pay more if Britain wanted to stay attractive for investment.
He warned that Mr Trump’s tariffs would deal a blow to the sector if London doesn’t make “offers in this direction.”
However, NHS bosses are reportedly fighting against a raid on their budgets to fund the move.
The Treasury also says there is no extra money ahead of a budget where Chancellor Rachel Reeves is expected to raise taxes.
A government spokesperson said: “The pharmaceutical sector and the innovative medicines it produces are critical to our NHS, our economy and the Plan for Change. Through our Life Sciences Sector Plan, we've committed to working with industry to accelerate growth in spending on innovative medicines compared to the previous decade.
“We've secured a landmark economic partnership with the US that includes working together on pharmaceutical exports from the UK whilst improving conditions for pharmaceutical companies here.
“We're now in advanced discussions with the US Administration to secure the best outcome for the UK, reflecting our strong relationship and the opportunities from close partnership with our pharmaceutical industry.”