Marketplace Morning Report The U.K. agrees to pay more for American meds
Dec 2, 2025
Michelle Fleury, a BBC correspondent focused on international business and economics, discusses the recent UK–US pharmaceutical agreement, revealing how the NHS will face increased costs despite zero tariffs on drug shipments for three years. Will Baines, a BBC reporter on aviation and transportation, examines the staffing crisis in European air traffic control, highlighting shortfalls, recruitment issues, and the potential for delayed flights and increased fares as travel demand rises.
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UK Trade-Off On Drug Pricing
- The UK cut the pharma rebate from ~23% to 15% while boosting new-medicine spending by 25% to avoid US tariffs.
- That shifts cost burden toward British taxpayers and may ease pressure on US prices.
Tariff Deal Protects UK Pharma Exports
- Escaping threatened US tariffs for at least three years protects a major UK export and investment pipeline.
- The deal aims to reverse recent cuts in pharma investment and shrinking NHS medicine spending.
Access Vs. Taxpayer Cost
- Faster access to new treatments may benefit UK patients while taxpayers absorb higher costs.
- The arrangement likely reduces costs for some US buyers but increases public spending in Britain.