With a Labour party victory across the UK, the life sciences industry will be expecting Keir Starmer鈥檚 party to make good on a series of promises for growth and expansion as the country shifts power for the first time in 14 years.
The UK鈥檚 centre left-leaning Labour Party, led by Keir Starmer, has taken control of parliament, having secured 410 seats over the previous Conservative Party鈥檚 117 seats, a catastrophic loss of 247 seats marking the party鈥檚 swift drop from power.
Among the public, it is hoped that the shift may lead to greater political and economic stability in a country that has seen costs rapidly rise alongside a National Health Service that is crumbling due to mismanagement and an exodus of medical staff. Still, life science investors could be hesitant as a traditionally pro-business Conservative front is ousted from power.
In February 2024, the Labour Party published its 鈥淧rescription for Growth鈥� 鈥� an alongside the country鈥檚 life science industries in a bid to keep the sector competitive amid a UK that is slowly losing relevance amid the medical device and clinical trials scenes. At the same time, Labour has promised to end the rolling NHS junior doctor, nurse and senior consultant strikes that have crippled the NHS amid sharply dropping rates of pay for staff.
Presented by the presumptive healthcare lead for the new government, Wes Streeting, the plan sets the tone for a first-time health and social care minister as the party becomes expected to make good on promises to an industry on edge.
As part of that plan, the Labour government has pledged to 鈥渟trengthen the Office for Life Sciences, so that it is politically empowered to truly drive delivery across government鈥�. At the same time, the party has committed to 鈥渁 more certain funding environment and a more streamlined funding process, to end Tory short-termism and attract long-term investment. We will set ten-year budgets for key R&D institutions鈥�.
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By GlobalDataNorthern Health Science Alliance (NHSA)’s deputy chief executive Hannah Davies said: 鈥淟abour pledged in their manifesto to create thousands of jobs and to inject growth into research and development, we need to see this happen proportionately more in the North of England, which our research shows has historically been under-invested in, to see the UK realise its full potential in health science innovation.
“In 2022, the North received 拢405m of research funding, compared to the 拢1.69bn awarded to London, Oxford and Cambridge. This equates to significant discrepancies in funding per person with the Greater South East receiving over two and a half times more per person than in the North 鈥� 拢68.58 compared to 拢25.72, respectively.
鈥淭hrough investing in a northern R&I supercluster, tackling barriers to business innovation and growth, and addressing the wider needs required for innovation in life sciences Labour have a huge opportunity to build on one of the region鈥檚 core strengths and key areas of growth.
鈥淗ealth and life sciences are globally recognised as a UK strength. No other sector provides such a significant boost to the economy and directly impacts the population鈥檚 health in the same way. By investing in the sector in the North, the new government will be investing in its people.鈥�
The UK鈥檚 North has traditionally been a political stronghold for the Labour Party, as opposed to the more affluent Conservative-aligned south. Research by the NHSA earlier this year found that , the Francis Crick Institute and Sanger Institute respectively, received government investments of 拢71.2m ($88.6m) and 拢116.6m ($144.3m) in 2022. In the same year, the entirety of the UK鈥檚 northern healthcare system received only 拢48m in infrastructure funding, less than half of the amount provided for the two southern facilities.
All eyes will now be on Streeting in his first few days and weeks in power, as the UK life science industries expect the party to drive investment into the sector while driving growth in medical staff across the country.
Polling by YouGov before the election details how healthcare and the NHS are the second most important issue for all voters across the UK, with 46% of respondents indicating that it was their top priority just behind the overall economy.
Gerard Hanratty, head of health and life sciences at UK law firm Browne Jacobson, said: 鈥淲ith lots on its plate to make positive change in the NHS, the new government鈥檚 healthcare strategy should combine short, medium, and long-term priorities that begin to gradually move us from a curative to preventative system.
鈥淎 more challenging task will be to clear NHS waiting lists within five years, so the government must find a way of making it easier for the private sector to partner with trusts and plug the gap in delivering vital services. Identifying the right legal framework for provider collaboration can bring better services, cost efficiencies and transparency for patients.”
Hanratty adds: 鈥淎t the same time, we must continue to embrace the role of technology and data in the modern healthcare system while safeguarding patients. Along with further developing the NHS app to enable patients to manage their medicines, appointments and health needs, a clear AI regulation strategy is required.
鈥淭his should be developed to enable cross-border, data-driven healthcare as far as possible. By striking a delicate balance between promoting innovation and ensuring accountability through ethical guidelines and standards for AI development and deployment, we can create a more efficient and preventative-focused healthcare system.鈥�
