Community Pharmacy Scotland Agrees 2026/27 Financial Settlement

Published: 30th September 2026

Community Pharmacy Scotland (CPS) has agreed a funding settlement with the Scottish Government for 2026/27, providing increased funding certainty for Scotland's community pharmacy network. 

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The agreement includes: 

• An increase in the guaranteed minimum reimbursement level from £120 million to £130 million. 

• A 3.5% uplift to the Global Sum, equivalent to £8.5 million. 

• The transfer of £10 million from the Scottish Drug Tariff into the dispensing pool from October 2026, supporting a more equitable distribution of funding across the network through existing remuneration arrangements. 

• Repayment of the 2023 Advance commencing in accordance with agreed terms should reimbursement delivery exceed £150 million. 

• Margin-sharing arrangements commencing should reimbursement delivery exceed £160 million. 

• A joint commitment by CPS and the Scottish Government to review the community pharmacy contractor cost base, helping to inform future funding discussions and negotiations. 

Throughout negotiations, CPS engaged constructively with Scottish Government officials and with Maree Todd MSP, Minister for Mental Wellbeing, Public Health, Sport and Drugs. CPS welcomes the positive working relationship established with the Minister and her team and looks forward to building on this foundation in support of future ambitions and funding negotiations for community pharmacy

Matt Barclay, Chief Executive Officer of Community Pharmacy Scotland, said: 

"Within the parameters set by the Scottish Government, CPS worked hard to secure the best deal possible for contractors. The agreement provides increased funding certainty and a fairer distribution of newly secured funding across the network, while establishing a foundation for future discussions on the sustainability and development of community pharmacy. 

We look forward to continuing constructive engagement with the Scottish Government as we prepare for the 2027/28 negotiations." 

Community pharmacy continues to play an increasingly important role in delivering accessible healthcare services and supporting the wider NHS. While welcoming the positive aspects of this settlement, CPS remains clear that future negotiations must address the financial pressures facing contractors and provide the investment needed to support the continued sustainability and development of community pharmacy services. 

Further details of the settlement and implementation arrangements will be shared with contractors in due course. 

For more information, contact enquiries@cps.scot.

This information was correct at the time of publication. Policy and guidance can change, so please check our latest news for the current position. For anything else, please contact enquiries@cps.scot

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Frequently Asked Questions (FAQs)

• Why is the 3.5% Global Sum uplift important?

  The Global Sum represents the core remuneration available to contractors for providing NHS pharmaceutical services e.g. NHS Pharmacy First Scotland. For 2026/27, the Global Sum will increase by 3.5%, equivalent to approximately £8.5 million. This reflects DDRB recommendations, which have been used by CPS in previous years negotiations to support the process. 

• Why is £10 million being transferred into the dispensing pool?

  The dispensing pool is one of the core funding mechanisms through which all contractors receive payment (remuneration) for dispensing NHS prescriptions. By transferring £10 million from the Scottish Drug Tariff into the dispensing pool, funding is distributed more consistently across the entire network rather than being dependent on individual reimbursement performance. This approach aligns with CPS's objective of ensuring fairness and equity across all contractors. 

• What is the position on service development funding for 2026/27?

  Negotiations focused heavily on securing stability for the network and addressing immediate financial pressures within the parameters set by the Scottish Government. While CPS continued to make the case for investment in new and enhanced services, Scottish Government funding priorities for this settlement did not allow for additional service development funding. 

• What engagement has taken place to support future collaboration between CPS and the Scottish Government?

  CPS engaged extensively with Scottish Government officials and with Maree Todd MSP, Minister for Mental Wellbeing, Public Health, Sport and Drugs. As the Minister is relatively new to the portfolio, discussions focused not only on this year's settlement but also on establishing a constructive relationship that can support future ambitions and negotiations on behalf of the community pharmacy network.