I am repeating the following Written Ministerial Statement made today in the other place by my Noble Friend, the Minister of State for Science, Innovation, Research and Nuclear, Lord Vallance of Balham.

Today I can update the House that the UK and US governments have published the joint text of our Arrangement on Pharmaceuticals Pricing and Tariffs. This builds on the General Terms for the UK-US Economic Prosperity Deal announced in May 2025 and takes forward joint commitments made when the principles of the partnership were first announced in December 2025. The Arrangement will improve the lives of NHS patients, support our life sciences sector, and grow the economy.

Central to the partnership are the actions the Government is taking to improve and protect UK patient access to new and important medicines. More NHS patients will get improved access to life-changing new treatments because of the medicines pricing changes we have made, and the associated UK medicines spend targets set out in the Arrangement. Investing in medicines helps keep people healthier for longer, reduces pressure on the health service over the longer-term, and ensures we have an NHS that is fit for the future.

The update to the NICE cost effectiveness threshold, made for the first time in two decades, has already made a direct difference for NHS patients. Two medicines have already been recommended by NICE under the new threshold, giving patients immediate accessing to life-changing medicines - including a brain cancer drug for patients as young as 12 and a last-resort treatment for patients with a rare form of stomach cancer who had already exhausted other options. NHS patients in England will be able to access these through the health service, thanks to the new thresholds.

In addition, the Arrangement includes clarification of the US commitments on its Most Favoured Nation (MFN) pricing policy and support for UK patient access; including outlining expectations from the US Government that companies will continue to launch new medicines quickly in the UK.

The partnership supports our life sciences sector – which not only saves lives but creates jobs, drives investment, and powers innovation across our economy. UK pharmaceuticals exports to the US – worth over £5 billion in 2024 - will be subject to no additional US tariffs as a result of Section 232 or Section 301 investigations for at least 3 years. This includes avoiding Section 232 tariffs on patented pharmaceuticals of up to 100% announced by the US on Thursday 2 April. This makes the UK the first and only country to benefit from a commitment to tariff free access to the US pharmaceuticals market, providing certainty for UK exporters, and giving the UK sector a significant competitive advantage over other trading partners. This supports economic growth and helps protect our vital pharmaceutical manufacturing industry - which in 2025 added £28.5bn to the UK economy, employed over 50,000 people in high-skilled jobs across the country, and exported almost £21bn in pharmaceutical products worldwide.

We have also achieved preferential terms for medical technology exports, which will be subject to no additional tariffs as a result of Section 232 or Section 301 investigations for at least three years – protecting over 195,000 UK jobs in the MedTech sector. The UK and US have also agreed to work together towards mutual recognition of medical device approvals - cutting red tape and supporting future innovative health technologies to reach patients on both sides of the Atlantic.

The partnership has received widespread support from the life sciences sector, and will lead to greater investment in UK life sciences. It has already started generating results, such as £500 million investment in UK R&D and manufacturing in Surrey from the global biopharmaceutical company UCB which was announced in January.

We will continue to work closely with the life sciences sector to help land investment into the UK, and deliver on our ambition for the UK to become the third most important life sciences economy by 2035 - as set out in our Life Sciences Sector Plan.

The finalising of this Arrangement does not introduce any further costs for HM Government beyond those set out previously. The Government will continue to assess the costs and benefits of this arrangement.

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