Fresh blow for Rachel Reeves as AstraZeneca AXES £450m investment in Merseyside manufacturing plant – blaming the Labour government_Nhy
Rachel Reeves suffered a fresh blow today as AstraZeneca cancelled a huge £450million investment in a vaccine manufacturing plant.
The pharma giant blamed the Labour government reducing support as it dramatically torpedoed the development on Merseyside.
Then-chancellor Jeremy Hunt announced at the Budget last March that the firm would be expanding its existing facility in Speke.
The Tory administration hailed the investment as boosting the UK’s life sciences sector, as well as improving public health protection in the wake of the pandemic.
But a spokesman for AstraZeneca said today: ‘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.’
Rachel Reeves suffered a fresh blow today as AstraZeneca cancelled a huge £450million investment in a vaccine manufacturing plant
The pharma giant blamed the Labour government reducing support as it dramatically torpedoed the development on Merseyside
The existing facility, which produces the flu vaccine, will continue to operate and no current jobs are at risk.
The decision by the UK’s most valuable company is humiliating for Ms Reeves after she spent weeks boasting of her determination to grow the economy and bring in more investment.
Her October Budget – including a massive national insurance raid on firms – has been blamed for crushing activity.
The previous deal with AstraZeneca is believed to have included £70million in grants and £20million in research and development funding from the UK Health Security Agency.
Tory MP Andrew Griffith, the shadow business secretary, 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 and 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.
‘When will Labour learn that only businesses can create growth and jobs in the economy.’
Before Christmas AstraZeneca revealed that it would be investing $3.5bn in research and development and manufacturing in the US.
America is the world’s largest pharma market and generates 44 per cent of the company’s sales.
Former health secretary Matt Hancock has warned that the UK needs to improve its own vaccine manufacturing capability as a ‘critical’ part of preparing for a future pandemic.
Mr Hancock told the Covid Inquiry earlier this month that Britain’s vaccine manufacturing capacity 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’.
