The UK government has drawn up proposals to increase the amount the NHS pays pharmaceutical firms for drugs to help appease US President Donald Trump, and a threat of tariffs on the sector.
Politico reports officials briefed the Trump administration on fresh proposals to adjust how the NHS prices medicines earlier this week.
A key aspect of the proposal is a 25% increase in the cost-effectiveness threshold used by the National Institute for Health and Care Excellence (NICE).
This benchmark helps determine whether a medical treatment provides sufficient health benefits for its price. At present, the NHS typically deems a treatment worthwhile if it delivers an additional year of high-quality life for a cost of roughly £20,000 to £30,000.
By raising this threshold, the NHS would be able to approve a wider range of higher-priced drugs, expanding patient access but also increasing total spending on medications.
UK companies accelerating localisation
UK companies are accelerating localisation and regionalisation strategies to manage risk and avoid similar effects from tariffs, a recent survey by EY showed.
Conducted in August 2025, the survey of 100 UK CEOs – 70% of which are from publicly listed companies – found that CEO confidence has grown despite a turbulent macro and geopolitical environment.
87% of UK CEOs said they were very or somewhat optimistic about company performance over the next 12 months, an increase from 83% in May this year.
Against the backdrop of recent geopolitical challenges, including tariffs and trade negotiations, UK CEOs are taking proactive steps to embrace localisation and regionalisation strategies.
Localisation – initiatives such as producing goods in the country where they will be sold – has already been implemented by 41% of CEOs surveyed, while 23% have put regionalisation strategies, such as building supply chains within specific blocs, into practice.
44% are currently rolling out localisation measures, and 37% are in the process of implementing regionalisation plans.
Of those surveyed, 65% said they viewed localisation as a long-term strategic shift rather than a short-term tactical adjustment, with 71% also echoing this trend from a regional perspective.
The key areas CEOs are applying localisation and regionalisation strategies include, operations and supply chain, technology and data, and research and development (R&D).
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