The fate of AstraZeneca’s planned £450 million investment in a vaccine manufacturing facility in northwest England hangs in the balance as the Treasury, under the leadership of Chancellor Rachel Reeves, reviews spending decisions made by the previous government. Reports suggest that the Treasury has sought to reduce the amount of state support for the project to £40 million, significantly lower than the minimum of £65 million verbally offered by former Chancellor Jeremy Hunt to encourage AstraZeneca’s expansion of its nasal flu vaccines plant in Speke.
During his March budget speech, Hunt celebrated AstraZeneca’s investment, which included an additional £200 million expansion of its global research and development centre in Cambridge. He praised the pharmaceutical giant as “one of our greatest life science companies led by the irrepressible Sir Pascal Soriot.” However, Soriot, AstraZeneca’s chief executive, has expressed criticism of the UK’s operating and fiscal environment on various occasions.
Maria Eagle, Labour MP for Liverpool Garston, whose constituency includes AstraZeneca’s Speke site, plans to hold a meeting with the government’s Office for Life Sciences on Wednesday to secure the investment. The Treasury maintains that it remains in “positive discussions” with AstraZeneca to support the project’s delivery, emphasising its commitment to making the UK a top global location for developing and manufacturing innovative medicines.
AstraZeneca, which recently saw its London stock market value surpass £200 billion, solidifying its position as the most valuable UK-listed company, has not commented on the Financial Times report. Last month, Soriot stated that the company was “absolutely ready to go” with its Speke expansion and that the contract with the government was progressing through the necessary processes.
Andrew Griffith, shadow secretary of state for science, innovation and technology, expressed disappointment at the apparent downgrading of the UK’s ambition to become a science and technology superpower, suggesting that the Treasury is undermining the department’s efforts. He warned that jeopardising AstraZeneca’s plans, which he described as a “big boost for Britain,” would be a mistake.
As the Labour government settles in and reviews the nation’s fiscal priorities, the uncertainty surrounding AstraZeneca’s substantial investment in Speke underscores the delicate balance between supporting the life sciences sector and managing budgetary constraints. The outcome of this decision will have significant implications for both the local economy and the UK’s broader ambitions in the global pharmaceutical industry.
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