AstraZeneca has cancelled plans for a £450m vaccine manufacturing plant in Liverpool, blaming a lower in funding from authorities.
The funding, introduced final 12 months within the Tories’ spring funds, was depending on a “mutual agreement” with the Treasury and third events, it was mentioned on the time.
It is going to not go forward as a result of Labour ministers have supplied much less funding than their predecessors, the pharmaceutical big mentioned.
“Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government’s proposal.”
The cash would have expanded an current web site in Speke and was hailed on the time as a “vote of confidence” in Liverpool and the UK’s life science sector.
The AstraZeneca spokesperson mentioned that the Speke web site “will continue to produce and supply our flu vaccine, for patients in the UK and around the world”.
A authorities spokesperson mentioned a “change in the make-up of the investment” proposed by AstraZeneca had “led to a reduced government grant offer being put forward”.
The spokesperson added: “All authorities grant funding has to reveal worth for the taxpayer and sadly, regardless of in depth work from authorities officers, it has not been attainable to realize an answer.
“AstraZeneca remains closely engaged with the government’s work to develop our new industrial strategy, and more broadly we continue to have a thriving life sciences sector, worth £108 billion to the economy and providing over 300,000 highly skilled jobs across the country.”
The choice is a blow to Rachel Reeves’s renewed makes an attempt to ship financial development.
In a speech earlier this week which named AstraZeneca, the chancellor mentioned life sciences could be key to boosting the economic system.
She introduced plans to ship an Oxford-Cambridge development hall, which she claimed would add as much as £78bn to the general public coffers.
Picture:
Jeremy Hunt speaks to the media throughout a go to to the AstraZeneca Speke Manufacturing unit. Pic: HM Treasury
Andrew Griffith, the shadow enterprise secretary, mentioned: “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 and central to the critical life sciences sector.”
The brand new plant at Speke was supposed to boost the UK’s pandemic preparedness.
Experiences that it was beneath risk emerged shortly after Labour gained the final election, when ministers warned of the necessity to make cuts to infrastructure tasks to fill a £22bn “black hole” within the public funds.
The affirmation comes after former well being secretary Matt Hancock mentioned that the UK wanted to enhance its personal vaccine manufacturing functionality as a “critical” a part of making ready for a future pandemic.
Mr Hancock advised the COVID Inquiry earlier in January that Britain’s vaccine manufacturing capability was “weak”.
He added: “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.”
