Tens of thousands of NHS patients are set to benefit from a landmark trade agreement between the UK and the US that will transform access to life-saving medicines, safeguard supply chains, and drive billions in investment into the UK’s life sciences sector.
The deal, part of the UK-US Economic Prosperity Agreement, makes the UK the only country in the world to secure a zero percent tariff on pharmaceutical exports to the US, cementing Britain’s position as a global leader in life sciences and protecting UK-based manufacturing. Preferential terms for UK medtech exports will also ensure no new tariffs, unlocking further investment and growth.
Major pharmaceutical firms including Moderna, Bristol Myers Squibb, and BioNTech have already committed billions to UK operations, reinforcing confidence in the government’s ambition to make the UK Europe’s leading life sciences economy by 2030.
In addition to trade benefits, the government will increase investment in innovative treatments by 25% – the first major rise in over two decades. This will enable NICE to approve breakthrough medicines that previously may have been declined on cost-effectiveness grounds, including cutting-edge cancer therapies and treatments for rare diseases.
The UK has also secured mitigations under the US ‘Most Favoured Nation’ drug pricing initiative, ensuring British patients remain among the first globally to access new medicines. This builds on the UK’s track record of early adoption of revolutionary treatments such as Blenrep for blood cancer, Kimmtrak for eye cancer, and Aucatzyl for personalised leukaemia care.
The agreement strengthens US-UK relations and supports the government’s 10-Year Health Plan, Modern Industrial Strategy, and Life Sciences Sector Plan, backed by over £2 billion of investment. It also complements recent reforms that have halved clinical trial approval times from 91 to 41 days, accelerating patient access to life-changing research.
Liz Kendall, Secretary of State for Science and Technology, said:
“This vital deal will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives.
“It will also enable and incentivise life sciences companies to continue to invest and innovate right here in the UK.
“This will support thousands of skilled jobs, boost our economy and ensure that the breakthroughs that happen in our labs turn into treatments that benefit families across the country.”
By securing zero tariffs and boosting investment, this deal ensures the UK remains at the forefront of medical innovation—delivering faster access to cutting-edge treatments, creating high-quality jobs, and reducing long-term pressure on the NHS.
The NHS Confederation has responded to the news, with Director of Policy Layla McCay saying:
"Healthcare leaders know that a thriving health and life sciences sector is key to ensuring that patients can access the treatments and innovations they need, at the best value to the NHS, whilst also supporting economic growth.
"Medicines also have a key role to play in delivering the government’s three shifts for the NHS, including keeping people out of hospital.
"However, the NHS budget in England is under significant pressure from the rising demand for care, coupled with ongoing strike action, so we will need to understand how these higher drug prices will be paid for. Any uplift in medicines prices would need to be funded by HM Treasury.
"An increase in medicines spending that is funded within existing planned NHS budgets, presents risks to the quality of services to patients and could result in difficult decisions about what the health service needs to cut back on."
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