Astra May Move Vaccine Hub from Liverpool to France

AstraZeneca's ambitious £450 million investment in a new vaccine manufacturing facility near Liverpool is now uncertain following the UK Treasury's threat to reduce state aid. The pharmaceutical company is reportedly contemplating relocating the project to France, a move that could be prompted by Chancellor Rachel Reeves' proposal to cut funding by over £20 million. This would significantly lower the state aid commitment to approximately £40 million, down from the £65 million previously offered by former Chancellor Jeremy Hunt. Sources indicate that this funding gap poses a serious risk to the investment, as AstraZeneca had been poised to move forward with the project. The Treasury has acknowledged ongoing discussions with AstraZeneca regarding the development but has not dismissed the possibility of slashing state support. AstraZeneca, known for its role in developing one of the key Covid vaccines, has refrained from commenting on the situation. In March, the Conservative government announced plans for the Speke facility, emphasizing its commitment to sustainability with a promise of operational net-zero emissions powered by renewable energy. A Treasury spokesperson reiterated the government's dedication to making the UK a leading hub for innovative medicine development and manufacturing, highlighting the importance of the AstraZeneca investment. On a notable note, AstraZeneca recently achieved a significant milestone by becoming the first UK company to reach a market valuation of £200 billion, surpassing Shell and other major firms. This achievement underscores the company's growing prominence in the pharmaceutical sector, even as its future investment plans hang in the balance.