Thank you to everyone who has contacted me to raise concerns about the UK-US pharmaceuticals deal.
The deal the UK has reached with the US is fundamentally about putting patients first. It will allow NHS patients to receive innovative treatments faster, extending lives and giving families more precious time together.
As you may be aware, the Government has secured a zero percent tariff on all pharmaceuticals exported to the US for three years. This will protect UK-based manufacturing and cement this country’s place as a world leader for life sciences investment.
I am pleased the agreement also includes mitigations under the US’ ‘Most Favoured Nation’ drug pricing initiative – a US Government policy to lower the cost of medicines in the US to match prices in other high-income countries. These mitigations will encourage pharmaceutical companies from around the world to continue to prioritise the UK for early launches of their new medicines, meaning British patients could be among the first globally to access breakthrough treatments.
The deal was supported by the UK Government’s commitment to investing 25% more in new innovative medicines – the first major increase in over two decades – which will support improved access to new medicines for NHS patients. The agreement will be funded by allocations made at the Spending Review, where front line services will remain protected through the record funding secured. Ministers have rightly committed not to cut NHS budgets to fund the deal.
Investing in medicines helps keep people healthier for longer, reducing pressure on the health service over the longer term and ensuring the NHS is fit for the future. Over time, Ministers will increase the spend on medicines in the NHS from around 10% of total spend to around 12%. This will ensure faster, more equitable access to innovative medicines across the country.
With this Government, I believe our NHS is on the road to recovery, but there is still a lot to do. I was pleased to seem the 2025 Spending Review prioritise health, with record investment in the health and social care system. I welcome this deal with the US, which will ensure UK patients get the cutting-edge medicines they need sooner and world-leading UK firms keep developing treatments that can change lives.