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UK Proposes 25% Rise in NICE Threshold to Avert Trump Tariffs

Advanced talks with Washington aim to stave off duties, with how to fund higher NHS drug spending still unresolved.

Overview

  • Officials have briefed the US on plans to lift the cost‑effectiveness threshold used by NICE by about 25%, and the government says discussions are at an advanced stage.
  • Acceptance by the US has not been confirmed; Trump has threatened tariffs of up to 100% on pharmaceutical imports unless other countries pay more for drugs.
  • The move would shift the current £20,000–£30,000 per QALY range toward roughly £25,000–£35,000, easing approvals of costlier treatments and raising overall medicine spending.
  • A Whitehall dispute has opened over funding, with Chancellor Rachel Reeves resisting new cash and Health Secretary Wes Streeting pushing for departmental support beyond the NHS budget.
  • Experts including the Nuffield Trust warn the change could cost billions and harm population health by diverting resources, while advocates say access to some cancer and weight‑loss medicines could expand.