The pharmaceutical firm has halted a planned £450 million investment in Speke after the Labour party limits government support.
Pharmaceutical firm AstraZeneca has pulled a planned £450 million investment in a vaccine manufacturing plant in Merseyside, after the Labour government limited the previous government’s offer of support.
In March last year, the firm said that intended the investment to research, develop and manufacture vaccines in Speke, Liverpool, a facility which will be operationally net zero with power supplied from renewable energy sources.
In a statement, the firm said: “Following protracted discussions with the government, we are no longer pursuing our planned investment at Speke”. The firm went on to say that several factors had influenced the decision including “the timing and reduction of the final offer compared to the previous government’s proposal”.
The withdrawal is being portrayed as an embarrassment for the Labour government which last week highlighted life sciences as a key UK strength and even name-checked the firm as one of the “great companies” that was delivering jobs and growth.
Cut in government support
The deal was first announced by then-chancellor Jeremy Hunt in March last year.
“We are sticking to our plan to make the UK one of the best places in world to invest in developing and manufacturing new, innovative medicines – both protecting public health and growing our economy. AstraZeneca’s investment plans are a vote of confidence in the attractiveness of UK as a life sciences superpower and strengthen our resilience for future health emergencies,” he said at the time.
AstraZeneca chief executive officer Pascal Soriot added: “AstraZeneca’s planned investment would enhance the UK’s pandemic preparedness and demonstrates our ongoing confidence in UK life sciences. We will continue to support the UK in driving innovation and patient access, building on the strong foundations which have been put in place.”
But incentives seem to be at the heart of AstraZeneca’s change of heart.
In August, the Financial Times reported that Reeves had wanted to more than halve the amount of government support for the plant from £90 million to £40 million.
The facility in Speke will continue to operate and it is reported that no jobs are at risk.
