AstraZeneca has scrapped a £450 million investment in a vaccine manufacturing plant in Merseyside, citing Labour's failure to match the support offered by the previous government.
This move overturns an announcement made by then-chancellor Jeremy Hunt during last year's March budget, which would have seen the pharmaceutical giant expand its Speke facility.
The Conservative government at the time claimed the investment would enhance the Ƶ's life sciences sector and bolster public health protection and pandemic readiness.
On Friday, an AstraZeneca spokesperson confirmed the cancellation, stating: "Following discussions with the current Government, we are no longer pursuing our planned investment in Speke."
They added that "Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government’s proposal."
Despite the reversal, the existing facility will remain operational, and there are no job losses expected.
A Government spokesperson said a “change in the make-up of the investment” proposed by AstraZeneca had “led to a reduced Government grant offer being put forward”.
The spokesperson added: “All Government grant funding has to demonstrate value for the taxpayer and unfortunately, despite extensive work from Government officials, it has not been possible to achieve a solution.
“AstraZeneca remains closely engaged with the Government’s work to develop our new industrial strategy, and more broadly we continue to have a thriving life sciences sector, worth £108 billion to the economy and providing over 300,000 highly skilled jobs across the country.”
The decision is a setback for the Government, especially after a week where the Chancellor aimed to underline the administration's dedication to economic growth and enhancing Britain's appeal to global investors.
It also comes on the heels of former health secretary Matt Hancock's warnings that boosting the Ƶ's vaccine production capabilities is a "critical" aspect of preparing for future pandemics.
Earlier in January, Mr Hancock informed the Covid Inquiry that Britain's vaccine manufacturing capacity was "weak", stating: "having that manufacture and fill and finish onshore, physically within the Ƶ, is critical in the way that it simply isn’t in normal times". The Treasury has been approached for a response.
