Thank you for contacting me about Global Justice Now’s campaign about the US-UK pharmaceutical deal.
Since taking office, the Government’s economic and tax policies have contributed to several pharmaceutical companies withdrawing or reducing their investments into the UK. This has put the UK in a worse bargaining position when negotiating with the US on medicine pricing.
On Monday 1 December 2025, the Government agreed a deal which will see zero tariffs being applied on pharmaceuticals exported from the UK into the US.
As part of the deal, the UK’s National Institute for Health and Care Excellence is raising the threshold that it uses to assess what drugs are cost effective to be funded through the NHS. A consultation about these proposed changes has recently concluded.
While the deal may lead to more medicines being made available in the UK, as you have highlighted, it will also lead to higher NHS spending on medicines.
The Government has estimated that the cost of the deal will be around £1 billion over the period to 2029, with the potential for costs to rise as NICE approves more medicines. This will be funded through the existing Department of Health and Social Care budget, and Ministers must provide clarity about what this will mean for other services.
In November 2025, the Office for Budget Responsibility described higher spending on branded medicines as a major risk to Health and Social Care spending over the next three years.
While I was unable to attend the Global Justice Now briefing, I appreciate you raising the issue with me.
Thank you again for taking the time to contact me.
