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AstraZeneca’s £450 million vaccine plant at risk as government reconsiders financial backing

August 15, 2024

The Treasury has reassured that it remains in “positive discussions” with AstraZeneca regarding the pharmaceutical giant’s proposed £450 million vaccine manufacturing facility in northwest England.

However, doubts have emerged following reports that the government is considering reducing its financial support for the project to £40 million—a significant cut from the £65 million reportedly promised by former chancellor Jeremy Hunt.

This investment, along with a separate £200 million expansion of AstraZeneca’s global research and development hub in Cambridge, was highlighted by Hunt in his March budget speech. At the time, he praised AstraZeneca as “one of our greatest life science companies,” led by the “irrepressible” Sir Pascal Soriot.

Although Soriot, AstraZeneca’s CEO, has expressed confidence in UK life sciences, he has also voiced concerns about the country’s business and fiscal environment. Following Labour’s recent election victory, the Treasury, under new Chancellor Rachel Reeves, is reviewing spending decisions made by the previous government, including those related to AstraZeneca’s expansion plans.

Local MP Maria Eagle, whose Liverpool Garston constituency includes the Speke site, is reportedly planning a meeting with the government’s Office for Life Sciences to secure the investment. The Treasury has reaffirmed its commitment to making the UK a global leader in the development and manufacture of innovative medicines and confirmed that discussions with AstraZeneca are ongoing.

AstraZeneca, which recently saw its market value surpass £200 billion, declined to comment on the situation. Last month, Soriot indicated that the company was “absolutely ready to go” with the Speke expansion and expressed hope that the government contract could be finalised soon.

Shadow Secretary of State for Science, Innovation and Technology, Andrew Griffith, expressed disappointment, stating that the Treasury’s actions appear to undermine the UK’s ambitions to become a global science and technology leader. He warned that jeopardising AstraZeneca’s plans could threaten a significant British success story.