Prime Minister Sir Keir Starmer is facing fierce accusations of redirecting billions of pounds from the National Health Service to satisfy former US President Donald Trump, following a controversial pharmaceutical pricing agreement.
The Liberal Democrat deputy leader, Daisy Cooper, has launched a campaign demanding the government scrap the deal, which she labels a "£3bn Trump tax." She claims taxpayer money is being "rerouted at the request of Donald Trump" from vital frontline NHS services and into the profits of large drug companies.
The Details of the US-UK Drug Pricing Deal
The agreement, finalised at the start of December 2025, was designed to prevent the United States from imposing trade tariffs on British pharmaceutical products. In return, the UK committed to paying significantly more for new medicines.
The core of the deal involves increasing the cost-effectiveness threshold used by the National Institute for Health and Care Excellence (NICE). The threshold will rise by 25%, moving from a range of £20,000-£30,000 per quality-adjusted life year (QALY) to £25,000-£35,000 by 2035.
The government argues this change will allow NICE to approve more innovative, life-improving medicines that were previously rejected on grounds of cost. Ministers have estimated the annual cost to be around £1bn by 2029.
However, other analyses, including one cited by the prestigious Lancet medical journal, project the final annual bill for the NHS could be as high as £3 billion. The exact figure will depend on how many new treatments are approved under the more lenient financial rules.
Political Backlash and Calls to Scrap the Deal
Daisy Cooper has condemned the manner in which the agreement was reached, stating it is "outrageous" that it proceeded without public debate or proper scrutiny in Parliament. She characterised it as "just a decision by the Labour prime minister, Keir Starmer."
She disputes the government's claim that the funds will unlock a wave of new treatments. "Independent experts suggest it could just be three or four, possibly five at most," Ms Cooper said. "What this money will do is simply increase the amount of money that we will pay for the existing drugs that we use."
Instead, the Lib Dems are urging Sir Keir to cancel the agreement and invest the £3 billion directly into the struggling social care system. "Scrap this £3bn 'Trump tax' and fix social care now," she declared.
Government Defence and NHS Concerns
When the deal was announced, NHS leaders supported the government's view that it could provide tens of thousands of patients with access to groundbreaking new drugs. Science Secretary Liz Kendall stated the deal would "enable and incentivise life sciences companies to continue to invest and innovate right here in the UK."
However, health service executives also warned that the NHS budget is already stretched too thin to absorb these new costs without impacting other areas. They stressed that budgets for existing care, services, and treatments must not be raided to pay for it.
Whitehall sources have claimed the increased drug prices will not come from existing NHS service budgets. They say the costs will be covered by hundreds of millions of pounds allocated to the NHS last year specifically for the early stages of this deal.
Ms Cooper countered by arguing the government needs to "stand strong" against President Trump, who she says only understands "the language of strength." She also accused the government of being "all spin and no substance" on social care, noting it has held only one meeting on the issue despite promising cross-party talks a year ago.
The government has been contacted for further comment.
