AstraZeneca has cautioned that it might move its vaccine manufacturing operations from the UK to the US due to an ongoing dispute with the new UK Labour government over proposed cuts to state aid, according to a report by the Financial Times.
The conflict centres around British finance minister Rachel Reeves‘ intention to slash state funding for the vaccine centre, reducing the previous government’s commitment from approximately £90 million to £40 million.
This reduction includes fewer grants and research support, initially promising to develop a facility in Speke, Liverpool.
Sources have indicated that manufacturing could shift to India, where AstraZeneca has previously produced vaccines.
However, an AstraZeneca spokesperson clarified that no discussions about relocating to the US or India are underway.
The company remains focused on the Speke site and is engaged in constructive negotiations with the UK government.
A UK Treasury spokesperson confirmed the positive discussions with AstraZeneca regarding securing the planned investment in Speke.
Previously, the Sunak administration had planned to invest £650 million in AstraZeneca to enhance vaccine research, development, and manufacturing.
