AstraZeneca withdraws £450m UK investment deal due to financial concerns

AstraZeneca has canceled its planned £450 million investment in a vaccine manufacturing facility in Speke, Merseyside, citing a shortfall in government funding and a reduction in its own proposed research and development (R&D) spending. Science Minister Sir Chris Bryant expressed the government's regret over the decision, emphasizing that a revised offer was made to AstraZeneca that was close to the previous government's proposal but ultimately did not meet the company's altered investment levels. The shadow science minister, Alan Mak, criticized the government for mishandling the negotiations, stating that the failure to secure the deal has cost the UK jobs and raised questions about the Labour government's economic credibility. Despite the setback, existing production and jobs at AstraZeneca will be maintained. The company's decision follows a series of protracted discussions with the government regarding support levels. Bryant noted that AstraZeneca's initial commitment for R&D was cut from £150 million to around £90 million, impacting the viability of the investment deal.