Hundreds of community chemists face closure under cuts by ministers.

As many as 400 will see payments plummet unless they hit new prescription targets. This could force half of the independents in London to shut.

Campaigners say the "disgraceful" cuts will have a major impact on young mothers and the elderly. The Government had pledged to pay more heed to difficulties faced by independent retailers, as highlighted by the Evening Standard's Save Our Small Shops campaign.

But the new guidelines will end the system under which chemists receive about £18,000 if they handle more than 1,100 prescriptions a month. From April, they must dispense more than 2,000 or their NHS income will fall to less than £3,000.

The target was agreed after a ballot by the Pharmaceutical Services Negotiating Committee, which represents chemists. The aim is to shift pharmacists from being only shopkeepers to taking on a bigger role as health professionals.

But small businesses say they were not consulted properly. They warn the new terms favour big operators such as Superdrug, Boots and Lloyds Pharmacy.

David Kent, secretary of Camden and Islington Local Pharmaceutical Committee, said many small pharmacies were reliant on the NHS payments as they make little profit over the counter.

"It's disgraceful and will affect the most vulnerable," he said. "The community pharmacy is being sent to the scrapheap by big business. These chemists can't survive without this money."

Harry Gitter, who owns Macey Pharmacy in Gospel Oak and handles 1,600 prescriptions a month, said he faced closure within a year under the new system: "This is based on greed. I'll lose my business, the community will suffer."

The negotiating committee denied the changes would lead to closures. It said chemists with low prescription volumes should try to get help from their primary care trust. A spokesman said: "We believe smaller operators have been properly represented in negotiations."

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