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UK Drafts Plan to Raise NHS Drug Value Threshold by 25% to Head Off US Tariffs

The move forms part of talks with Washington to avoid threatened tariffs that have already put UK pharma investment on hold.

Overview

  • Officials briefed the White House this week on proposals centered on lifting NICE’s cost‑effectiveness threshold by roughly 25%, which would allow more expensive drugs onto the NHS at higher overall cost.
  • The government says discussions with the US are at an advanced stage, though it remains unclear whether Washington will accept the plan or how any change would be implemented.
  • A funding row has opened inside government, with the Treasury resisting new money as Health Secretary Wes Streeting seeks options to cover what could be a multibillion‑pound increase.
  • Several major drugmakers have paused or cancelled UK projects this year, including MSD halting a planned £1bn London research center and AstraZeneca and Eli Lilly delaying investments.
  • Health economists and the Nuffield Trust warn a higher threshold could reduce net population health by diverting NHS resources, while industry groups push for an even larger increase and NICE stresses that spending decisions rest with ministers.