Treasury Reassures It Is In Positive Discussions With Astrazeneca

AstraZeneca's £450m UK vaccine hub under threat from Reeves state aid review

Treasury reassures it is in 'positive discussions' with AstraZeneca

AstraZeneca has warned that its planned £450m investment in a new vaccine manufacturing hub in the UK could be scrapped if the government presses ahead with plans to review state aid.

The Treasury has said it is in "positive discussions" with the company, but the comments from AstraZeneca come as a blow to the government's ambitions to make the UK a global hub for the development and manufacture of vaccines.

AstraZeneca's new vaccine hub, which is planned for Speke in Merseyside, would create 450 jobs and is expected to be operational by 2026.

Concerns over state aid review

The government is currently reviewing its state aid rules, which could lead to changes that would make it more difficult for companies to receive government support.

AstraZeneca said that the review is causing "uncertainty" and that it is "evaluating our options" regarding the investment in the new vaccine hub.

The company said that it is "committed to the UK" but that it needs "clarity" from the government on the state aid rules before it can make a final decision on the investment.

Treasury response

The Treasury said it is "committed to working with AstraZeneca to support its investment in the UK".

A Treasury spokesperson said: "We are in positive discussions with AstraZeneca and are confident that we can reach an agreement that supports the company's investment plans and the UK's ambition to be a global hub for the development and manufacture of vaccines."

Conclusion

The future of AstraZeneca's planned £450m vaccine manufacturing hub in the UK is in doubt following the government's announcement that it is to review its state aid rules.

The government has said it is in "positive discussions" with the company, but AstraZeneca has warned that the review is causing "uncertainty" and that it is "evaluating its options" regarding the investment.

The Treasury has said it is "committed to working with AstraZeneca to support its investment in the UK", but it remains to be seen whether the government can provide the clarity that the company needs to make a final decision.