Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether he has made an assessment of the potential impact of NHS spending on pharmaceutical products on the economy in the context of the UK-US trade deal.

Every patient deserves access to the best possible treatment. By increasing the standard National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold, we are increasing the value that we place on innovations that deliver improvements to patient health. Alongside the changes that we announced in the Life Sciences Sector Plan this will increase both the speed and breadth of patient access to innovative medicines and encourage growth in United Kingdom based clinical trials. This is supported by confirmation that, thanks to strong UK support for innovation, the UK has secured mitigations under the United States of America’s ‘Most Favoured Nation’ drug pricing initiative.

This deal will also benefit our life sciences sector, driving jobs, investment, and growth. We have secured a preferential tariff rate of 0% for all pharmaceuticals exports to the US for at least three years, and preferential terms for the UK’s medical technology exports, meaning no additional new tariffs on medical technology.

The move has secured the confidence of the pharmaceutical industry that the UK is a top destination for investment and growth, with major firms like Moderna, Prologis, and BioNTech investing billions here, and renewed confidence in the UK.

Costs will start smaller but will increase over time as NICE approves more life improving and lifesaving medicines. Total costs over the spending review period are expected to be approximately £1 billion. But the final costs will depend on which medicines NICE decides to approve and the actual uptake of these.