The UK spends less on medicines than other European countries, which means UK patients don’t always get the widest range of treatments available.
Medicines account for 9% of the UK’s healthcare spend compared to countries like Italy (17%), Germany (14%) and France (13%).
Source: Drug Expenditure Dynamics 2000–2022
Over the last decade, the value of the UK branded medicines market has declined by 11% in real terms. In the same period, the NHS budget grew by 33% in real terms.
Source: House of Commons Library 'NHS Funding and Expenditure' report (2024)
We’re working to change that
For over 70 years, our industry has worked with the UK government to ensure the NHS gets the best possible value from the medicines it uses, while industry gets a return on the huge investments needed to develop new treatments.
The latest example of how this happens is the 2024 Voluntary Scheme for Branded Medicines Pricing and Access (VPAG), which was agreed to ensure the NHS did not overspend its allocated branded medicines budget, even if it ended up using more medicines than forecast. To prevent NHS overspending, companies agreed to pay for branded medicines used by the NHS above a set level.
Unfortunately, despite positive intent from all sides, the Scheme had reached a crisis, leaving the UK significantly out of line with comparable countries on the payment rates companies are required to pay for eligible medicines.
This has already impacted patients. Medicines and vaccines have a critical role to play in delivering improved population health, but England has slipped from being first for the availability of new medicines compared to other countries in Europe to ninth, in less than ten years. We are working with all those involved in health policy to find a solution that works for government, the NHS, industry – and, most of all, patients.
