Astrazeneca cancels £450m vaccine plant, blaming state funding cut
Astrazeneca has cancelled a planned £450m investment in a vaccine manufacturing plant in Merseyside, saying Labour have failed to match the previous government’s offer of funding.
It sees the pharmaceutical firm scrap plans to expand its existing facility in Speke, as announced by then-chancellor Jeremy Hunt at last year’s March budget, as first reported by the Financial Times (FT).
According to the newspaper’s sources, government officials last summer tried to cut the state support provided to the project from about £90m to £40m, but since then a revised offer was put forward, of significantly higher than £40m.
Under the Tories, around £70m was on offer in grants, as well as £20m in research and development support from the UK Health Security Agency, the FT reported said.
But the investment has been pulled just two days after Rachel Reeves cited life sciences as a key UK strength, in a speech on her plans to kickstart economic growth and make Britain appear attractive to international investors.
Confirming the reversal, a spokesperson for Astrazeneca said: “Following discussions with the current government, we are no longer pursuing our planned investment in Speke.
“Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government’s proposal.”
The existing facility – which supplies the flu vaccine – will continue to operate and no jobs are at risk, the PA news agency reported.
At the time of the initial announcement, the Conservatives said the investment would both boost the UK’s life sciences sector, public health protection and pandemic preparedness.
It also follows warnings by the former health secretary Matt Hancock that the UK needs to improve vaccine manufacturing capability as “critical” preparation for a future pandemic.
Hancock told the Covid Inquiry in January that Britain’s vaccine manufacturing capacity was “weak”, adding: “Having that manufacture and fill and finish onshore, physically within the UK, is critical in the way that it simply isn’t in normal times”.
Andrew Griffith, former life sciences minister, said: “There’s no vaccine for incompetence.
“In the same week they talked about growth, Labour seem to have fumbled a deal with Astrazeneca, one of the UK’s largest companies, central to the critical life sciences sector.
“This is yet another sign that their tax rises and changes to employment law have made the UK an unattractive place to invest.”
The Treasury has been contacted for comment.