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British pharmaceutical giant AstraZeneca has abandoned its £450 million expansion plans for its vaccine manufacturing facility in Speke, Liverpool, delivering a significant blow to the UK’s life sciences sector. The decision comes amidst disagreements over government funding support, marking a dramatic U-turn from what the company had previously described as a project “absolutely ready to go”.
Science Minister Chris Bryant expressed deep disappointment over the company’s withdrawal, acknowledging that a reduction in government support had occurred. The minister revealed that AstraZeneca had scaled back its proposed research and development investment from £150 million to £90 million, leading to a reassessment of public funding commitments.
The Treasury’s final offer of £78 million in state support, down from the initial £90 million proposed under the Conservative administration, proved insufficient to secure the project. The timing of the announcement proved particularly awkward, coming just hours after Chancellor Rachel Reeves had praised AstraZeneca as one of Britain’s “great companies” during a speech on economic growth.
The cancelled expansion raises questions about the UK’s ability to attract and retain major pharmaceutical investments. The existing Speke facility, which employs 450 people, will continue its current operations, producing childhood flu nasal spray vaccines for British and American vaccination programmes.
Pascal Soriot, AstraZeneca’s chief executive and the FTSE 100’s highest-paid boss with an £18.7 million package, had previously championed the expansion project. The company’s decision to withdraw represents a significant setback for the government’s ambitions to position Britain as a global leader in life sciences research and development.
The Treasury maintains that all government funding must demonstrate value for taxpayers, citing AstraZeneca’s reduced investment proposal as the primary reason for the adjusted support package. The development highlights the delicate balance between attracting corporate investment and ensuring responsible use of public funds in the UK’s competitive life sciences sector.
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