AstraZeneca has abandoned a £450 million investment in a major UK vaccine plant powered by renewables in a blow to Rachel Reeves who vowed this week to “kick-start economic growth”. The Telegraph has more.
The drugmaker, which is Britain’s most valuable listed company, said it was no longer going ahead with the investment at the site near Speke, Liverpool, after failing to secure the necessary financial support from the Government.
AstraZeneca has been locked in a stand-off with the Government for months over state aid for the project, which would have involved a new factory powered by renewables built at the site. It had reportedly been offered around £90 million by Rishi Sunak’s Government, but Labour had sought to cut that state aid to £40 million.
The announcement drew immediate criticism from the Tories, who said there was “no vaccine for incompetence” and branded the decision an “absolute tragedy”.
It will be regarded as an embarrassment for the Chancellor, who named AstraZeneca as a key investor in Britain two days ago in a major speech promising to “kick start growth” in the economy.
An AstraZeneca spokesman said: “Following protracted discussions with the Government, we are no longer pursuing our planned investment at Speke.
“Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous Government’s proposal. The site will continue to produce and supply our flu vaccine, for patients in the UK and around the world.”
The decision is a blow to the Chancellor, whose speech on Wednesday was aimed at revitalising the economy and attracting investment to the UK. …
Andrew Griffith, the Shadow Business Secretary, said: “There’s no vaccine for incompetence. In the same week they talked about growth, Labour seem to have fumbled a deal with AstraZeneca, one of the UK’s largest companies and central to the critical life sciences sector.
“This is yet another sign that their tax rises and changes to employment law have made the UK an unattractive place to invest.”
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