ASTRAZENECA DITCHES £450M INVESTMENT PLANT IN UK  – Blaming a reduction in government support

AstraZeneca has scrapped plans to invest £450m in expanding a vaccine manufacturing plant in Merseyside, blaming a reduction in government support.

The pharmaceutical giant announced its decision just two days after Chancellor Rachel Reeves set out Labour’s plan to go “further and faster” to boost economic growth.

AstraZeneca said that after “protracted” talks, a number of factors influenced the move, including “the timing and reduction of the final offer compared to the previous government’s proposal”.

The Treasury said a change to the “make-up of the investment” that had originally been proposed led to the government grant being reduced.

“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,” said a Treasury spokesperson.

AstraZeneca said despite ditching its investment plans, its site in Speke would “continue to produce and supply our flu vaccine, for patients in the UK and around the world”. 

Plans to expand AstraZeneca’s site at Speke had been set out by the previous Conservative Chancellor Jeremy Hunt in last March’s Budget.

But reports subsequently emerged that talks over the plans between the new Labour government and the company had run into delays.