It’s time to take the brakes off Britain’s life sciences industry

In late 2023, there was an internal debate within the Labour Party as to whether to drop the term “life sciences” from its literature. Insights from a leading polling company were sent to advisors detailing a lack of public understanding of what the term means, how the industry is determined, and what it does. Ultimately, the Party stuck with the term and published its ambitious plan for the sector entitled “A Prescription for Growth”

The life sciences industry is one of Britain’s many success stories, contributing £17 billion directly to the UK economy every year. Its large manufacturing base exports nearly £26 billion in pharmaceutical goods and £10 billion in medical technologies worldwide. In terms of wealth generation and the industry’s contribution to higher living standards within Britain, it supports over 584,000 highly-skilled, highly paid jobs and sends around £10 billion to the Exchequer to be spent on schools, hospitals, and policing.

It is also an industry which shows huge growth potential, with pharmaceutical companies, medical technology manufacturers, research institutes, and biotechnology start-ups banging on the door to invest and innovate here in Britain. This is not just within London but in every nation and region of the UK, from advanced therapeutics and vaccine development in Liverpool to biomedical research and discoveries in cancer and cardiovascular disease in Northern Ireland.

Despite Britain’s life sciences industry being an internationally-envied success story, and the potential that could be, companies are now looking elsewhere to invest and grow. Over the past few years, Britain has become an increasingly unattractive destination to companies looking to launch new products, take risks with ambitious R&D programmes, or invest in their workforce or manufacturing – choosing instead to look to other European destinations with more welcoming environments for business.

There are many reasons why this is the case, but largely, the last government dropped the ball when it came to life sciences. Individual ministers, many of whom I have had the pleasure of meeting, should be credited with their dedication and commitment to the life science sector, but ultimately, the Conservatives chose to abandon the sector. Just a few years into the industrial strategy and accompanying sector-specific deals, Chancellor Rishi Sunak and Business Secretary Kwasi Kwarteng decided to put political ideology above the national interest and junked the government’s role within the partnership upon which investment and growth were dependent.

The new Labour government has the opportunity to reset the relationship with the life sciences industry and with it secure Britain’s domestic success story. It will require serious, grown-up conversations about the limitations of the state and an understanding of market dynamics. The prioritisation of life sciences in the forthcoming national industrial strategy is a sign that the new government understands the importance of the sector to achieving its growth mission, but that alone is simply picking up where the Theresa May government left it.

The Chancellor’s growth speech, designed to send out the message that Britain under Labour will be a welcome destination for business, spoke warmly about the contribution of the life sciences sector to our national life. However, despite a shoutout to life science innovators and the revival of the Oxford-Cambridge corridor, the reality of the Government’s policies resulted in a multi-million-pound manufacturing investment in Merseyside being pulled out a few days later.

To achieve growth, the breaks need to be removed from the life sciences industry. Every area of Whitehall must pull in the same direction, something made possible in mission-led government. This includes unlocking patient data through the 10-Year Health Plan and ensuring the tax and regulatory regimes are competitive and fair. The reward is more revenue for our public services and higher living standards. But it has to start now.

 

If you enjoyed this piece, click here to read a recent piece on the Government’s scientific innovation agenda. 

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