Healthcare leaders have raised concerns that President Donald Trump’s push for the NHS to spend more on medications could lead to job losses and extended patient waiting times. The NHS Confederation and NHS Providers issued a joint statement highlighting that the current budget did not account for the increased costs of redundancies, higher drug prices, and potential strikes. The Labour Party’s NHS recovery efforts are at risk due to ongoing negotiations with the US, which may result in the NHS paying significantly more for drugs.
A proposed agreement to raise drug “value for money” thresholds by 25% could create a financial gap in the NHS budget, impacting patient treatment timelines. President Trump’s threats of imposing tariffs on drug imports from UK companies if the NHS does not agree to higher prices have prompted pharmaceutical firms to reconsider investing in the UK due to the NHS’s negotiated lower drug prices.
NHS Providers CEO Daniel Elkeles emphasized the challenging decision the NHS faces between balancing its budget, reducing waiting lists, or risking deficits that could harm services. Similarly, NHS Confederation CEO Matthew Taylor expressed concerns about the unforeseen financial burdens, including redundancy payouts and potential industrial actions, that could hinder the NHS’s progress on key waiting time targets and essential reforms.
The projected deal with the US on increased medicine prices could result in an additional £1.5 billion expenditure for the NHS this year, compounding existing financial commitments. NHS leaders anticipate a funding shortfall of up to £3 billion, potentially leading to extended patient waiting times and service limitations. Hospital leaders fear the need to cut costs could impact services like weekend operations and productivity-boosting measures.
The financial strain could force trusts to ration certain treatments and become more stringent in determining which procedures to undertake, potentially affecting patients’ quality of life. As discussions between Health Secretary Wes Streeting and the Treasury continue, Chancellor Rachel Reeves is set to announce the UK’s autumn budget on November 26 to address taxation and spending priorities.
A Department for Health and Social Care spokesperson emphasized the government’s substantial investments in the NHS for digital transformation and urgent repairs, highlighting the commitment to adequately fund the healthcare system. However, the spokesperson stressed that investment must align with reforms outlined in the Plan for Change to drive the NHS forward effectively.
Recent data shows a 5.8% increase in activity by NHS acute hospital trusts in England, with a 3% rise in costs and overall productivity growth of 2.7% between 2024 and 2025. Despite progress in tackling backlogs, the waiting list for routine hospital treatments grew by nearly 12,000 in August, raising concerns about the NHS’s recovery trajectory.
NHS waiting lists in England surged to 7.6 million by 2024, marking a significant increase since 2010. The current government’s efforts to address hospital waiting lists have become a top priority, yet the financial challenges impede full implementation of necessary reforms and cost-saving measures.
NHS leaders underscored their commitment to delivering record activity levels and productivity gains but stressed the need for upfront financial support to navigate redundancy costs effectively. They urged for transparent discussions on achievable goals within the NHS’s financial constraints and the government’s long-term health plan.