Plans for a £450m vaccine manufacturing plant at the AstraZeneca site in Liverpool may be in doubt, a new report claims, as the UK Government looks to cut support for the project. Tony McDonough reports
A new report claims plans for a £450m vaccine manufacturing plant in Liverpool may be in jeopardy because the Government wants to cut back its financial support.
In March it was announced to great fanfare that pharmaceutical giant AstraZeneca was to build a new vaccine research, development and manufacturing facility at its existing site in Speke. It would be powered by renewable energy.
This announcement was bundled into the then Conservative Chancellor Jeremy Hunt’s spring Budget speech. It is believed Mr Hunt verbally promised the company £65m of Government cash towards the new plant.
However, the FT is now reporting that new Labour Chancellor Rachel Reeves is looking to reduce that figure by around £20m. The report adds this could prompt AstraZeneca to “pull the plug” on the project and relocate it to France.
There are currently talks ongoing between HM Treasury and the company over the level of support the Chancellor is willing to offer. When contacted by LBN AstraZeneca, which as of Wednesday had a stock market valuation of £200bn, said it had no comment to make.
Speaking last month, chief executive Pascal Soriot said: “We are absolutely ready to go. The contract is going through the process. Hopefully, we can conclude this quickly and get on with the investment itself.”
Since winning the General Election in June Labour has warned about the poor state of the UK’s public finances. Ms Reeves has reportedly ordered a review of all spending commitments by the previous Government.
A spokesperson for the Treasury said: “We are committed to making the UK one of the best places in the world to develop and manufacture new and innovative medicines.”
“The Chancellor receives regular updates on this planned investment in Speke, and we are in positive discussions with AstraZeneca to support its delivery.”
If the project was to be cancelled it would be a big blow to city region metro mayor Steve Rotheram who is keen to build on Liverpool city region’s existing life sciences sector.
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At the time of the announcement in March, Mr Rotheram said: “It is fantastic to see a vote of confidence from AstraZeneca, a global leader in pharmaceuticals, in the work we’re doing building our health and life sciences sector.
“We’ll continue to nurture our strengths to grow the economy, deliver new investment and jobs for local people and establish ourselves as a global leader.”