The US Treasury has confirmed it remains in “positive discussions” with AstraZeneca over the pharmaceutical giant’s proposed £450m vaccine manufacturing facility in northwest England.
However, doubts have emerged following reports that the government is considering cutting its financial support for the project to £40m – a significant cut from the £65m reportedly promised by former chancellor Jeremy Hunt.
Hunt highlighted this investment, along with a separate £200m expansion of AstraZeneca’s global R&D centre in Cambridge, in his budget speech in March. At the time, he hailed AstraZeneca as “one of our greatest life science companies”, led by the “strong” Sir Pascal Soriot.
While Soriot, AstraZeneca’s chief executive, has expressed confidence in UK life sciences, he has also voiced concerns about the country’s business and financial environment. Following Labour’s recent election victory, the Treasury, under new chancellor Rachel Reeves, is reviewing the previous government’s spending decisions, including those related to AstraZeneca’s expansion plans.
Local MP Maria Eagle, whose Liverpool Garston constituency includes the Speake site, is reportedly planning to meet with the government’s Life Sciences Office to secure investment. The Treasury has reiterated its commitment to making the UK a world leader in the development and manufacture of innovative medicines and confirmed that discussions with AstraZeneca are ongoing.
AstraZeneca, which recently surpassed £200bn in market value, declined to comment on the situation. Last month, Soriot said the company was “fully prepared” to expand into Speke and hoped the government contract would be finalised soon.
Shadow science, innovation and technology minister Andrew Griffiths expressed his disappointment, saying the Treasury’s actions appeared to undermine the UK’s ambitions to become a world leader in science and technology. He warned that jeopardising AstraZeneca’s plans could jeopardise a major British success story.