AstraZeneca’s £450 million vaccine factory is at risk as the government reconsiders financial support

The Treasury has reassured that it remains in “positive discussions” with AstraZeneca over the pharmaceutical giant’s proposed £450m vaccine production facility in north-west England.

However, doubts have been raised following reports that the government is considering cutting financial support for the project to £40 million – a significant reduction from the £65 million reportedly promised by former chancellor Jeremy Hunt.

This investment, along with a separate £200m expansion of AstraZeneca’s global research and development center in Cambridge, was highlighted by Hunt in his March budget speech. At the time, he praised AstraZeneca as “one of our greatest life science companies”, led by the “irstoppable” Sir Pascal Soriot.

While Soriot, the CEO of AstraZeneca, has expressed confidence in British life sciences, he has also raised concerns about the country’s business and tax environment. Following Labour’s recent election victory, the Treasury, led by 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 Speke site, is reportedly planning a meeting with the government’s Office for Life Sciences to secure the investment. The Treasury has reaffirmed its commitment to making Britain a world leader in the development and production of innovative medicines and confirmed talks with AstraZeneca are ongoing.

AstraZeneca, which recently saw its market value rise above £200 billion, declined to comment on the situation. Last month, Soriot indicated that the company was “absolutely done” with the Speke expansion and expressed hope that the government contract could be completed soon.

Shadow Secretary of State for Science, Innovation and Technology Andrew Griffith expressed his disappointment, stating that the Treasury’s actions appear to be undermining Britain’s ambitions to become a global leader in science and technology. He warned that jeopardizing AstraZeneca’s plans could jeopardize a significant British success story.