Keir Starmer is facing demands from MPs to scrap a controversial healthcare agreement dubbed the “Trump tax” deal and redirect funds towards repairing the ailing social care system in the UK. The Liberal Democrats have accused the Prime Minister of yielding to pressure from the US President following the recent trade deal announcement. While experts project a potential £3 billion annual increase in pharmaceutical costs due to the transatlantic pact, the government contests this estimation.
Under the terms of the agreement, medication price thresholds could rise by up to 25%, although the government lauds the deal as securing zero tariffs on pharmaceuticals to the US, positioning Britain uniquely in the global market. The pressure mounts on the PM to accelerate the implementation of promised social care reforms as data reveals over 4.3 million days were spent by patients unnecessarily occupying hospital beds in 2024/25.
Daisy Cooper, the deputy leader of the Liberal Democrats, criticized Keir Starmer for prioritizing payments to the US administration over addressing the social care crisis. She called for urgent action to resolve the negligence in the system and urged Starmer to demonstrate a clear commitment to tackling the issue. Despite the government’s establishment of a cross-party commission on social care in January last year, little progress has been made, reinforcing criticism from opposition parties.
Labour has pledged to introduce a National Care Service before the 2024 general election, with Baroness Louise Casey leading a commission expected to provide initial recommendations this year and final proposals by 2028. Concerns persist over the impact of the UK-US deal on drug costs, with estimates suggesting a substantial increase in expenditure. However, the government defends the agreement, emphasizing its role in safeguarding supplies and enhancing terms for UK medical technology exports.
Responding to criticisms, a government spokesperson refuted claims of diverting funds from NHS frontline services towards the deal, emphasizing the necessity of the agreement to bolster the healthcare sector. Efforts to streamline hospital discharge processes and improve collaboration between NHS and social care entities have been highlighted as part of a broader strategy to alleviate pressure on healthcare facilities.
In a recent statement, Robert F. Kennedy, Jr., representing the US healthcare sector, commended President Trump for his leadership in negotiating the agreement with the UK, emphasizing the benefits for both countries. Despite the ongoing debate surrounding the deal, the government remains steadfast in its commitment to enhancing healthcare provisions and ensuring access to essential medicines.