Fears for Astra's UK vaccine hub: Treasury cuts could derail £450m Liverpool project
AstraZeneca's £450million investment in a vaccine manufacturing site is in doubt after the Treasury threatened to cut state aid.
The pharmaceuticals giant is reportedly considering scrapping a planned facility near Liverpool and could relocate the project to France.
It comes a day after it broke records to become Britain's first £200billion company.
Funding shortage: Astra boss Pascal Soriot (pictured) is reportedly considering scrapping a planned vaccine facility near Liverpool and could relocate it to France
Chancellor Rachel Reeves wants to cut spending on the project by £20million-plus after ordering a review of the last government's commitments.
That would take state aid for the project to around £40million, after Tory chancellor Jeremy Hunt offered at least £65million.
'There is a sizeable gap that would certainly threaten the investment,' a source told the Financial Times.
The Treasury confirmed that it was in 'positive discussions' with Astra about the development and did not deny plans to slash state funding.
Astra, which was the creator of one of several Covid vaccines rolled out during the pandemic, declined to comment.
Just last month its boss Pascal Soriot said: 'We are absolutely ready to go.
This contract is going through the process. Hopefully we can conclude this quickly and get on with the investment itself.'
The Conservative government announced plans for a new vaccine site in Speke in March, saying it would be 'operationally net zero', with power supplied from renewable energy sources.
A Treasury spokesman yesterday said: 'We are committed to making the UK one of the best places in the world to develop and manufacture new and innovative medicines.
'The Chancellor receives regular updates on this planned investment in Speke and we are in positive discussions with AstraZeneca to support its delivery.'
On Tuesday Astra became the first UK firm to be valued at £200billion when it closed with a market capitalisation of £200.3billion – ahead of Shell at £176billion.
Just two other London-listed firms' values top £100billion – HSBC (£120billion) and Unilever (£118billion).
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
