UK and US confirm zero-tariff deal on pharmaceuticals
The agreement will give the US zero tariffs on pharmaceutical products imported in return for the NHS spending more on medicines
The Government has agreed a deal with the US which will lead to an increase in NHS medicines spending in exchange for zero tariffs on pharmaceutical products.
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The UK has agreed to lower an industry sales rebate rate on NHS drug prices and to also improve the NHS's cost-effectiveness measure for drugs.
It comes after warnings that US pharma firms will shut down their sites in the UK if the NHS does not pay more for drugs.
President Donald Trump has long called for changes that will level the playing field in terms of what American customers pay for drugs compared with those in the UK and Europe.
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The Government will increase the upper threshold for which it can buy new medicines by 25 per cent, from £20,000-£30,000 to £25,000-£35,000.
Science and Technology Secretary Liz Kendall said: "This vital deal will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives.
"It will also enable and incentivise life sciences companies to continue to invest and innovate right here in the UK.
"This will support thousands of skilled jobs, boost our economy and ensure that the breakthroughs that happen in our labs turn into treatments that benefit families across the country."
The UK and US agreed in May to seek a deal on the proviso that firms secured a better operating environment in Britain.
In October, the science minister Patrick Vallance told MPs, as negotiations with the US continued, that many drugs available in the UK would see an "inevitable" price increase.
Business and Trade Secretary Peter Kyle added: "This deal guarantees that UK pharmaceutical exports – worth at least £5 billion a year - will enter the US tariff free, protecting jobs, boosting investment and paving the way for the UK to become a global hub for life sciences.
"We will continue to build on the UK-US Economic Prosperity Deal, and the record-breaking investments we secured during the US State Visit, to create jobs and raise living standards as part of our Plan for Change."