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Liberal Democrats Urge Starmer to Scrap US Drug Pricing Pact

Critics say the money tied to higher medicine prices should be redirected to relieve social care pressures that block hospital discharges.

Overview

  • The party calls for the UKUS agreement to be abandoned and for funds to be steered into social care, with deputy leader Daisy Cooper demanding cross-party talks led by the prime minister.
  • The deal keeps UK pharmaceutical exports to the US tariff-free for three years and lifts the NHS cost-effectiveness threshold for new drugs by 25%, with NICE moving from £20,000–£30,000 to £25,000–£35,000 per quality-adjusted life year.
  • The Lancet’s estimate of roughly £3 billion in extra annual drug costs is disputed by the government, which says the figure is incorrect and projects around £1 billion a year by 2029 while pledging no cuts to frontline NHS services.
  • NHS leaders supported the prospect of wider access to innovative treatments under the new thresholds but warned that core budgets must not be raided to cover higher medicine spending.
  • Opponents highlight slow progress on reform, noting the Casey social care commission has met once in a year, and cite analysis of more than 4.3 million hospital bed days lost to delayed discharges in 2024/25.