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Pharmacy contractors and other health business owners are trying to build “savings buffers” to weather a tough financial climate, a Barclays survey suggests. 

The bank found that small and medium-sized enterprises had 6.4 per cent more savings in the third financial quarter of 2025-26 compared to the previous year. 

Barclays surveyed 500 health business owners for its latest business prosperity index, including hospitals, dental practices, GPs and ambulance services as well as high street pharmacies.

While the findings are not broken down by health sector, a spokesperson told P3pharmacy that the sentiment of pharmacy owners who took part “broadly mirrors” that of other providers. 

Across all respondents- including large corporate providers as well as SMEs – net cash flow was up 1.1 per cent as “disciplined spend control” meant cash outflows compensated for a drop in income. 

Emma Palmer, head of healthcare at Barclays UK Business Banking, commented: “It has been a challenging time for smaller health and social care businesses, with increasing cost pressures and low consumer confidence.

“This is reflected in the data, with SMEs increasing savings by over six per cent year-on-year in the last quarter, reflecting a cautious approach ahead of the chancellor’s Autumn Budget. 

“Despite this, we have seen an increase in SME lending, driven by our targeted approach to improving access to finance for health and social care SMEs.”

Nonetheless, both small providers and larger ones said they plan to invest more in their business in the year to come as 74 per cent reported “stronger than average demand for products and services” in the third quarter of 2025-26.

Eighty-six per cent said they plan to increase investment in artificial intelligence over the next 12 months, with 96 per cent believing this will “deliver tangible benefits for their business” said Barclays, which found AI was a key priority for investment due to its perceived potential to improve processes, patient care and workforce retention. 

Barriers to investing in AI included a lack of finance, the time required to train staff an privacy concerns. 

“Pharmacies are amongst the healthcare SMEs that have demonstrated remarkable resilience, building up cash reserves while embracing innovation,” commented Ms Palmer.

She added: “Our data shows the sector is preparing for an AI healthcare revolution. As we look to 2026, I believe pharmacies, both independent and high street, will lead the way in harnessing AI to streamline dispensing, reduce administrative burdens, and ultimately free up pharmacists to focus on patient care. 

“With improving access to finance and a clear appetite for upskilling, the sector is poised to turn digital ambition into tangible improvements for patients and staff alike.”