AstraZeneca scraps plans for new £450m facility in Liverpool

A sign outside the AstraZeneca factory in Speke
-Credit:PAUL ELLIS/AFP via Getty Images


AstraZeneca has pulled out of plans to build a new £450m facility in Liverpool. AstraZeneca, which produced one of the Covid-19 jabs, has an existing site on Renaissance Way, Speke and during the spring budget in March 2024, then-Chancellor Jeremy Hunt confirmed the company was set to create a new vaccine manufacturing hub at that site as part of a £650m investment in the UK.

However, the company will no longer proceed with the new site in Speke, it confirmed today. A spokesperson for AstraZeneca told the ECHO: "Following discussions with the current Government, we are no longer pursuing our planned investment at Speke.

"Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government's proposal. The site will continue to produce and supply our flu vaccine, for patients in the UK and around the world."

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Earlier this week, the ECHO reported that government delays threatened AstraZeneca's £450m investment in Speke. A Freedom of Information Request by The Times found Shaun Grady, the UK chairman of AstraZeneca, wrote to Secretary of State for Business and Trade Jonathan Reynolds shortly after Labour's success in July's general election.

He asked for assurance that the government's advanced manufacturing plan would continue as planned under a Labour administration. Mr Grady wrote: "This is an urgent issue as we need to begin work on the project in August in order to meet our business case timelines. I would be happy to fully brief you on this proposed investment and the requirements we had discussed with the previous government."

According to The Times, AstraZeneca did not get those assurances after Labour took office. Chancellor Rachel Reeves announced up to £520m funding for a new life sciences innovative manufacturing fund in her autumn budget last year and The Times said this was when AstraZeneca "received only a final grant offer of support."

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The Speke project did not begin in line with its planned timeline. It has now been cancelled.

A HM Government spokesperson told the ECHO: "A change in the make-up of the investment originally proposed by AstraZeneca led to a reduced Government grant offer being put forward. All government grant funding has to demonstrate value for the taxpayer and unfortunately, despite extensive work from government officials, it has not been possible to achieve a solution.

"AstraZeneca remains closely engaged with the government’s work to develop our new industrial strategy, and more broadly we continue to have a thriving life sciences sector, worth £108 billion to the economy and providing over 300,000 highly skilled jobs across the country.”