AstraZeneca ditches plan to build new UK vaccine plant


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AstraZeneca is pulling out of its plans to build a £450mn UK vaccine manufacturing plant after months of wrangling with British officials about state investment for the Merseyside project, in a major blow to Prime Minister Sir Keir Starmer’s government.

Officials put forward a revised offer of financial support for the site in Speke this month that was significantly higher than the £40mn offered last year, said people with knowledge of the arrangements.

Starmer’s Labour government sought last summer to reduce the amount of state support provided to the project from about £90mn to £40mn, according to people briefed on the matter.

“Following protracted discussions with the government, we are no longer pursuing our planned investment at Speke,” AstraZeneca said in a statement on Friday. “Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government’s proposal.”

The existing Speke site will continue to produce and supply the flu vaccine, the company said.

The previous offer by former Conservative chancellor Jeremy Hunt included up to £70mn in grants to develop an existing AstraZeneca vaccine facility at Speke, as well as £20mn in research and development support from the UK Health Security Agency, the people said.

The Treasury did not immediately respond to a request for comment.


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