House of Commons · Urgent Question
03 February 2025 · 28 other contributors
Opened by Alan Mak Con Havant
Summarised by AI from the official record, so it can contain mistakes.
Alan Mak raised concerns about astrazeneca 2025-02-03 in the House of Commons. A government minister responded. Other MPs also contributed.
Key points
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Will the Minister confirm that AstraZeneca has scrapped its £450 million investment deal at a facility in Merseyside, and will he explain why the Chancellor cut funding promised under the previous government's deal with AstraZeneca?
Question
Why did the Government fail to secure the deal with AstraZeneca that would have created jobs and improved pandemic preparedness in Liverpool?
Minister reply
The Conservatives sat on this deal for four years without securing a final agreement. Due diligence was required to ensure value for money, leading us to offer slightly less than initially promised due to changes in AstraZeneca's investment plans.
Question
Will the Minister confirm that the UK is committed to incentivising R&D investment, set out the mix of R&D and manufacturing agreed under the previous Government, and explain how he intends to address pandemic supply chain resilience?
Minister reply
Yes, we are committed to growing the economy through R&D. The original deal involved £150 million in R&D but was revised to £90 million by AstraZeneca, which influenced our final offer. We will continue to support valuable jobs and innovation in the UK.
Question
When will the Invest 2035 strategy be published, and will the Minister publish the impact assessment to show the value for money argument?
Minister reply
Invest 2035 is due to be released in spring. The Government has already provided a clear rationale based on value for money after due diligence.
Question
Will my hon. Friend confirm that the Government will engage with partners in the city region to try to recover ground on this deal?
Minister reply
The Minister confirmed meetings will take place between key stakeholders including the University of Liverpool, the metro mayor Steve Rotheram, council leaders and MPs from the region.
Question
What does the Minister intend to do to replace a deal which is clearly a terrible failure?
Minister reply
The Minister reiterated that while there was regret, AstraZeneca made a decision based on their own assessment and Lord Vallance is working closely with the sector on manufacturing provisions.
Question
Is the money still on the table for other viable life science projects in our region?
Minister reply
The Minister confirmed that the Government stands ready to assist key investments, especially in the life sciences sector. He assured that someone from his Department will meet Steve Rotheram.
Question
How does losing £450 million of investment on Merseyside and into the wider north-west area equate with the Chancellor’s stated priority of economic growth?
Minister reply
The Minister argued that while it was disappointing, previous announcements by the last government had not always been delivered. He noted that due diligence had yet to be completed when his Government took office.
Question
Will the Minister confirm that the Government are committed to working with AZ so it continues to have a bright future in Macclesfield?
Minister reply
The Minister confirmed the Government’s commitment to ensuring AstraZeneca has a strong future at its Macclesfield site.
Question
Can I urge him to continue to make the case for this investment, be flexible on VFM and keep fighting for this specific deal?
Minister reply
The Minister agreed he would continue making the case for a deal with AstraZeneca but did not specify for the specific Merseyside site.
Question
Will the Minister meet me and colleagues to explain how he can guarantee investment in R&D in the city region going forward?
Minister reply
The Minister offered to meet but suggested that a meeting with Lord Vallance, the Minister for life sciences, would be more useful.
Question
Does the Minister agree that AstraZeneca’s rejection of his Government’s final offer is not the only concerning issue for our biopharma industry?
Minister reply
The Minister explained that the VPAG agreement with pharmaceutical companies was voluntary and NICE's decision on a breast cancer drug had been rare.
Question
What is the Minister doing to improve the situation where distinguished people like Kate Bingham say that officials in the civil service treat this huge industry with suspicion and contempt?
Minister reply
The Minister acknowledged AstraZeneca's complaint about lengthy negotiations but defended the independence of NICE and the importance of learning better ways to inform decisions on science.
Question
Did the Government’s rise in national insurance contributions contribute to AstraZeneca's decision?
Minister reply
The Minister denied that it did.
Question
How can the House and the public trust anything the UK Government say when they failed to deliver an opportunity for economic growth in a region that could benefit greatly from it?
Minister reply
The key is ensuring value for money in taxpayer investments. We have seen significant added investments since autumn, such as Iberdrola doubling its investment through Scottish Power and Blackstone confirming a £10 billion investment in Blyth.
Question
Does the Minister agree that the Chancellor’s recent announcement of investment in the Oxford-Cambridge corridor shows a bright future for life sciences in the UK, and will he support Harlow's bid to be part of this future?
Minister reply
The Government sees significant potential in life sciences. We need investments to stretch across the UK and ensure we have the skills and economic structures needed for long-term growth.
Question
What assessment has been made of the impact on the UK’s ability to respond to future pandemics following AstraZeneca's decision?
Minister reply
The investment is not entirely dependent on our AstraZeneca programme, and we have seen changes in their vaccine development plans. If there are any updates from chief scientific or medical officers, they will inform the House.
Question
Despite AstraZeneca’s decision, will the Minister commit to looking at some trial research rules to enable smaller companies to work better with NHS trusts?
Minister reply
We need to enable smaller companies to grow and remain in the UK rather than having value disappear out of our back door. We are committed to supporting these companies alongside larger entities like AstraZeneca.
Question
Was the investment lost due to a lack of communication between the Government and AstraZeneca during the assessment process?
Minister reply
We had to change our support offer when AstraZeneca changed its R&D plans. However, we need to ensure value for money in public finance.
Question
Will the Minister commit to continuing to promote UK universities and ensuring a successful Oxford-Cambridge arc with devolution deals?
Minister reply
We are committed to promoting our world-leading universities and making sure that growth happens across the entire corridor, not just in Oxford and Cambridge.
Question
How is the Minister promoting businesses and encouraging them to invest in the UK despite increased red tape?
Minister reply
We have had significant investments since Christmas, and we are determined to grow the economy through investment in data centres, housing, and skills development.
Question
How is this Government committed to spreading growth in the life sciences sector across the whole country?
Minister reply
We are working with Lord Vallance to ensure our research and development budget supports economic growth, investing in start-ups as well as scaling up companies. We are also developing skills through collaboration with the Department for Education.
Question
What ties a company such as AstraZeneca to this country, given that investment per capita in R&D is greater in America?
Minister reply
AstraZeneca remains one of the biggest investors in the UK economy despite incentives elsewhere.
Question
Given US President Trump's protectionist policies, how will the Minister ensure that the UK remains an attractive destination for pharmaceutical investment?
Minister reply
The Minister reiterated that the UK is committed to having a low corporation tax rate and investing in public services. He argued that robust public services are crucial for economic recovery, as they enable both private and public sectors to thrive together.
Question
Considering the serious injuries or deaths caused by AstraZeneca vaccines, why is the Government continuing to indemnify AstraZeneca against civil liabilities?
Minister reply
The Minister stated that he believes the vaccines saved lives and did not cause them. He emphasised that they would never agree on this point.
Question
Given the pattern of ineffective negotiations by the current government, is it fair to say that Britain loses out when Labour negotiates?
Minister reply
The Minister noted that under previous governments, there were endless strikes affecting NHS waiting lists. He highlighted that negotiating with trade unions was necessary for getting people back to work and ensuring proper remuneration.
Question
How can the Minister claim that employer national insurance contributions were not a factor in AstraZeneca's decision, given their significant impact on businesses?
Minister reply
The Minister clarified that 50% of UK businesses will either pay the same or less in national insurance contributions. He also stated that AstraZeneca has not cited national insurance as a reason for its withdrawal.
Question
How does the Minister intend to encourage long-term, renewable investment and ensure companies feel supported by the Government?
Minister reply
The Minister assured that they are engaged in negotiations for significant investments. He highlighted the importance of delivering value for money while striving to make the UK competitive for such investments.
Government Response
I can confirm that the Government has engaged closely with AstraZeneca on their proposed investment in Speke, Liverpool. The previous government's support was valued at £90 million, subject to successful due diligence. After an assessment of AstraZeneca's revised investment plans, which involved a smaller level of R&D in the UK, we sought to ensure value for money for taxpayers. Our decision followed due diligence and is part of our broader commitment to grow the life sciences sector through initiatives like the forthcoming industrial strategy, set to be released this spring.