AstraZeneca cancels £450m investment in UK after dispute over Government support

AstraZeneca has cancelled a planned £450 million investment in a vaccine manufacturing plant in Merseyside, saying Labour failed to match the previous UK government’s offer of support.

The decision reverses an announcement made by then-chancellor Jeremy Hunt at last year’s March budget that would have seen the pharmaceutical company expand its existing facility in Speke.

At the time, the Conservative government said the investment would both boost the UK’s life sciences sector and improve public health protection and pandemic preparedness.

Reversal

Confirming the reversal on Friday, 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 will continue to operate and no jobs are at risk.

The decision comes as a blow to the Government following a week in which the Chancellor sought to stress its commitment to growing the economy and making Britain more attractive to international investors.

Warnings

It also follows warnings by former health secretary Matt Hancock that the UK needed to improve its own vaccine manufacturing capability as a “critical” part of preparing for a future pandemic.

Mr Hancock told the Covid Inquiry, earlier 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”.

The Treasury has been contacted for comment.