Keir Starmer is facing calls from MPs to scrap a controversial healthcare deal dubbed the “Trump tax” and redirect funds towards addressing the shortcomings in the UK’s social care system. The Liberal Democrats have criticized the Prime Minister for allegedly caving to pressure from the US President in striking the trade agreement, which experts predict could lead to a £3 billion annual increase in pharmaceutical costs, a figure disputed by the Government.
Under the deal, medication price limits are set to rise by as much as 25%, although the Government has highlighted the agreement’s benefits, emphasizing that the UK will be the sole nation worldwide to secure a zero percent tariff on pharmaceuticals exported to the US.
Pressure is mounting on the Prime Minister to expedite promised social care reforms, as data reveals that over 4.3 million days were spent by hospital patients waiting for care arrangements that could have been met by 2024/25. Deputy leader of the Liberal Democrats, Daisy Cooper, has criticized Starmer for prioritizing payments to the US over addressing social care issues, urging him to take charge of the situation and demonstrate his commitment to resolving the crisis.
Despite the government’s announcement of a cross-party commission on social care in January last year, the commission has only convened once since its inception. The delay in addressing social care concerns has drawn criticism, with calls for immediate action to prevent patients from enduring prolonged hospital stays due to inadequate care provisions.
Labour has pledged to establish a National Care Service ahead of the 2024 general election, with Baroness Louise Casey leading a commission set to deliver initial recommendations this year, and final proposals expected by 2028. The UK-US agreement has faced backlash, with estimates suggesting it could result in an additional £3 billion in annual drug expenses, although the Government asserts that the deal will safeguard supplies and secure favorable terms for UK medical technology exports.
In response to criticisms, a government spokesperson refuted claims of funding cuts to the NHS to support the trade deal, emphasizing that the agreement aims to enhance access to life-saving medications without compromising frontline healthcare services. Efforts are underway to address delays in hospital discharges and improve NHS productivity through increased investments and collaborative initiatives with social care partners.
Robert F. Kennedy, Jr., the healthcare chief under the Trump administration, commended the UK-US agreement for bolstering the global pharmaceutical trade environment and prioritizing American interests. President Trump’s leadership in negotiating the deal was lauded for bringing about reforms that benefit both nations.