Life Science Boost For UK As GSK Opens New Factory
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The UK life sciences sector has faced a significant challenge in recent years. Many have claimed Britain would become a relative backwater in scientific research after Brexit, while tax issues have been another concern when it has come to securing new investment.
However, such considerations have not prevented GlaxoSmithKline (GSK) from announcing it will be building a new drugs factory in the UK. The plant will be based at Ware in Hertfordshire, expanding an existing site where the firm already employs more than 1,300 people.
As Proactive Investors noted, this move is in contrast with AstraZeneca, which decided earlier this year to locate a major new factory in Ireland, citing the “very unattractive” business taxation situation in the UK for its decision. This includes a surcharge for drug firms if the NHS bill rises significantly, which it has as a result of Covid.
That has led to GSK also expressing concerns, with chief executive Emma Walmsley stating that this arrangement needs to be changed when it is re-negotiated in 2024.
Nonetheless, the commitment by GSK to its new plant is good news for the UK sector, from research and manufacturing jobs to life science sales.
The development was welcomed by science minister Simon Freeman, who said: “Investments from the private sector leaders like GSK are a critical part of the deep, long-term partnership between government, industry, investors and the NHS, underpinning the success of UK life sciences.”
Getting more life science investment into the UK despite apparent advantages enjoyed by other countries is an ongoing effort for ministers, but one area where a big effort has been made is Northern Ireland.
This month’s Northern Ireland Investment Summit in Belfast sought to attract investors in many sectors, including life sciences, taking advantage of the fact that the post-Brexit arrangements now in place mean Northern Ireland has access to both the UK market and the EU single market.