(Reuters) – AstraZeneca has warned it may move vaccine manufacturing from the United Kingdom to the United States amid a standoff with the new Labour government over plans to cut state aid, the Financial Times reported on Thursday.
UK finance minister Rachel Reeves wants to cut government funding for the vaccine centre, which would reduce the previous administration’s pledge from around £90m to £40m, the report said, citing sources.
The previous offer included up to £70m in grants to develop a facility in Speke, Liverpool, and £20m to support research and development from the UK Health Security Agency, according to the Financial Times.
Manufacturing could take place in India, where the company has produced vaccines in the past, people familiar with the discussions told the newspaper.
“We are in positive discussions with AstraZeneca (NASDAQ:AZN) to support the delivery of this planned investment in SPEAKER,” a UK Treasury spokesman said. AstraZeneca did not respond to a Reuters request for comment.
Sunak’s administration was planning in March to invest £650m in the Anglo-Swedish pharmaceutical company to boost vaccine research, development and manufacturing.