UK Government Bolsters Support for Life Sciences

In March 2024, the then UK government, led by former Prime Minister Rishi Sunak’s Conservative Party, announced a £360 million investment package to boost manufacturing and R&D in the life sciences sector. This included £7.5 million to support pharmaceutical companies in expanding their domestic manufacturing facilities, and £5.5 million to sustain and grow the UK's life sciences workforce via a Medicines Manufacturing Skills Centre of Excellence. 

Now, the Chancellor of the Exchequer Rachel Reeves, serving under the new Labour Party Prime Minister Keir Starmer, has increased this available funding to £520 million. Several other announcements aimed at developing the life sciences sector have also been made by Reeves, including the implementation of measures to support advanced manufacturing in the pharmaceutical sector and enhance the competitiveness of UK manufacturing. This initiative goes by the name of Resilience, and aims to equip professionals with the skills to keep UK medicines manufacturers at the forefront of global competition.

UK-based academics and industry professionals have welcomed Reeves’ announcement, but warn that it will only be worth the funding if a priority is made of generating and sustaining an appropriately trained workforce. In a statement, Resilience co-director Ivan Wall said, “A major consideration for success in building this capability will be in ensuring a strong supply of talent to maximize productivity across new facilities. Talent is in short supply across the UK Life Sciences sector, and that is where projects like Resilience can help by building the ecosystem to maintain a strong, internationally competitive sector and ensure patients have access to the best drugs through the NHS.”

Steve Bates, CEO of the UK Bioindustry Association, added, “The budget also lays the foundation for a transformation of our workforce with a reformed growth and skills levy. NHS research is also backed with increased funding, reinforcing the UK’s commitment to life sciences as a growth driver.”

Also responding to Reeves’ budget, ABPI CEO Richard Torbett said, “Despite the tough fiscal environment, today’s budget is a clear indication that the government sees life sciences at the heart of its growth mission. Confirmation of the life sciences innovative manufacturing fund is very welcome, and will be crucial in helping to capture high-productivity investment, and create valuable jobs at a time when they are most needed.”

Pharmaceutical manufacturing gross value added in the UK reached £13.7 billion in 2021, following a continuous upward trend from 2017 onwards. However, because of skills shortages in STEM disciplines, fewer young people are entering and remaining in STEM fields. The US and Germany are both seen to offer stronger incentives and career opportunities than the UK. Add to this the limitations on pathways into the sector, such as underutilized apprenticeship opportunities, and the high costs of living in key life sciences hubs such as London, Oxford, and Cambridge, the UK life sciences sector has lost some of its appeal – not to mention the regulatory and political uncertainty caused by the 2016 Brexit Referendum.

To address these lingering issues, industry stakeholders have expressed support for a government that advocates for improved STEM education, expanded apprenticeship and training opportunities, incentives for international talent, and policies to make the UK more competitive.