is considering relocating its manufacturing facilities from the UK to the US, amidst potential cuts to state funding from the Labour government.
UK Finance Minister Rachel Reeves has discussed plans to decrease state financial aid for the company鈥檚 拢450m vaccine centre, as per the .
The pharmaceutical giant had announced plans to construct a manufacturing plant in Speke, Liverpool, as part of a 拢650m investment in the UK, in March 2024. Of this amount, 拢450m would be allocated to the facility in Speke while the other 拢200m would be used to develop facilities in Cambridge.
Undisclosed sources briefed on discussions between the government and AstraZeneca said the Labour government may reduce the previous government鈥檚 pledge of 拢90m to 拢40m.
Attracting manufacturing investment has been a key part of the life sciences strategy for the UK. The government has also pursued similar projects with other companies, similar to one with Moderna to establish an mRNA facility. In his Spring 2024 budget speech, Jeremy Hunt, the Shadow Chancellor of the Exchequer said: 鈥淎straZeneca’s investment plans are a vote of confidence in the attractiveness of the UK as a life sciences superpower and strengthen our resilience for future health emergencies.”
“We are in positive discussions with AstraZeneca to support the delivery of this planned investment in Speke,” a UK Treasury spokesperson told following the Financial Times report. 鈥淲e have no idea where the comments in some media come from and they do not seem to be based on facts. As an example, there are no discussions in the US or India,” an AstraZeneca spokesperson told Reuters.
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By GlobalDataAndrew Griffith, the UK鈥檚 shadow technology secretary, told the Financial Times that if the UK government failed to meet its funding pledge it would be a 鈥渉uge backwards step for the UK鈥�. Griffith was involved in the coordination of the government鈥檚 initial agreement with AstraZeneca.
It would be 鈥渢ragic鈥� if the government failed to meet the previous pledge, added Sir Mene Pangalos, the former executive prime minister at AstraZeneca in a 14 August post.
鈥淭he government needs to be pulling and encouraging R&D and capital investment in the UK not making it difficult.鈥�
In her term as finance minister, Reeves has so far promised to deliver economic stability to the UK while disparaging the economic state left behind by the previous Conservative Government.
鈥淎fter 14 years, Britain has a stable government. A government that respects business, wants to partner with business, and is open for business,鈥� said Reeves in an 8 July statement.
