UK's drug bill falls to 11% of NHS spending

The UK's National Health Service drug bill (hospital and community) has declined as a proportion of overall NHS spending from 12.7% in 1999 to 11% in 2005, according to research published by the Office of Health Economics, a consultancy that is part of the Association of the British Pharmaceutical Industry. In total, the NHS drugs bill was L10.54 billion ($20.69 billion).

The data, published in the 2007 edition of the OHE's annual Compendium of Health Statistics, was calculated from a range of sources, including the government's Prescription Pricing Authority.

The volume of drug prescriptions dispensed rose from 616 million in 1997 to 881 million in 2005, an increase of 35%. The rising cost of newer drugs is reflected in the average price per item over the same period: climbing 27%, from L8.77 to L11.13.