This quarter, the UK life sciences industry has seen significant improvements in support from both the government and private investors. These new initiatives by the UK government aim to secure the UK’s position as a global leader in life sciences, strengthening its standing in the fields of biotechnology, pharmaceuticals, and medical research.
The latest news across the sector
Eli Lilly recently announced the launch of the first Lilly Gateway Labs in Europe, in collaboration with the UK government. This UK-based initiative aims to support early-stage and start-up biotech companies by providing laboratory space, guidance, and investment to drive innovation in addressing public health challenges, while also supporting NHS efforts to implement effective health solutions nationwide.
Promises from the PM
Keir Starmer has committed to a £1 billion investment in the life sciences sector, aiming to boost the UK’s position in global health and innovation. The investment will focus on several key areas: advancing research and development through innovation, attracting global talent back to the UK, upgrading laboratories, research centres, and facilities to create state-of-the-art locations for scientific research, generating jobs in life sciences across the UK, and encouraging collaboration and knowledge sharing between the government, universities, and private companies.
The Prime Minister has pledged to create a sustainable and robust healthcare system, focusing on improving public health outcomes by expanding the UK’s biomanufacturing capabilities and developing medicines domestically. This could be seen as a long-awaited step forward in reversing the effects of Brexit on research funding and collaboration.
The Autumn budget
- Substantial funding has been allocated to the life sciences sector, with a focus on R&D and healthcare improvements. Public R&D investment is set to increase to £20.4 billion for 2025–26, the DSIT budget has risen to £13.9 billion, and core R&D funding has been increased to £6.1 billion.
- The Life Science Innovative Manufacturing Fund has received a £520 million commitment, aimed at enhancing large-scale manufacturing and clinical research resources across the UK.
- This new financial backing is expected to attract up to £1.8 billion in private investment, creating numerous new jobs.
- An additional £25 million has been allocated to the R&D Missions Programme, and £40 million to the Proof of Concept Fund, which supports university-led research. This funding will further support the Innovation Accelerator initiative, promoting regional innovation clusters in cities emerging as new life science hubs, such as Glasgow, Manchester, and the West Midlands.
- All of these efforts form part of a broader strategy to re-establish the UK as a global life sciences hub post-Brexit, aiming to attract investment and collaboration to support the NHS and improve healthcare outcomes across the country.
Regulatory updates
The recent Future of UK Life Sciences Regulation conference further emphasised the importance of improving the UK’s environment for clinical trials and highlighted the need to enhance collaboration across regulatory bodies and the healthcare system. Key leaders emphasised the value of real-world data and the UK’s renewed partnership with international research through Horizon Europe, which will provide UK scientists with access to an €80 billion fund.
Through these efforts, the UK is strengthening its position as a hub for life sciences and a catalyst for innovation in the wider global market.
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