Background
On 8 May 2025, the UK and US agreed the General Terms of the Economic Prosperity Deal, which provided the framework for subsequent negotiations on a new agreement for pharmaceutical trade and pricing. On 1 December 2025, a preliminary understanding was agreed, committing the UK to increase spending and prices for innovative medicines from April 2026 and to develop a replacement to the Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) scheme by January 2029. The US commits to maintaining tariff-free access for UK pharmaceutical exports until at least 19 January 2029.
Scope
The NAO is undertaking a factual report to set out:
- the information available around the expected costs and benefits of the new arrangements
- the processes that were followed in making the decision to enter into the arrangements
- how the arrangements will be monitored, evaluated and reported
NAO team
Director: Andy Morrison
Audit Manager: Elsbeth Hopkins