Life Sciences Innovative Manufacturing Fund

Lincoln Jopp Excerpts

Wednesday 22nd October 2025 Commons Chamber

[Dame Chi Onwurah]

Let me thank the hon. Member for that intervention, which pre-empts something I will say in a few minutes. She is absolutely right: Northern Ireland already plays an important role in the life sciences sector and life sciences manufacturing, and it will have an important role to play in the future.

It is an incredibly exciting time to be involved in life sciences. I often think that if I were a young engineer now—I studied electrical engineering—I would be fascinated by the life sciences and, in particular, synthetic biology, which offers so many potential opportunities for growth and wellbeing. It is an enabling technology across so many different sectors.

In Newcastle, including in my constituency of Newcastle upon Tyne Central and West, the life sciences contribute £1.7 billion and employ over 8,000 people across more than 200 companies. We are home to the National Innovation Centre for Ageing, Newcastle Helix and The Biosphere. Our city is one star in a constellation of excellent life sciences clusters across the north of England.

I really welcome the ambition of the innovation manufacturing fund. I ask the Minister in his response for more clarity in three particular areas. First, in regard to the size of the fund, in the face of increased competition, and as the shadow Secretary of State described—this will be in less sensationalist terms—we are seeing some reduction in investment in the UK. Is £520 million enough to ensure that the UK is an attractive prospect for internationally mobile businesses? By contrast, a manufacturing plant such as Moderna’s recently opened vaccine centre in Oxfordshire might cost in the region of £150 million to £200 million. Is the fund the right size?

Secondly, the Select Committee recently held a one-off session on life sciences investment, which was of such interest that we have decided to hold another one-off session next week on the same subject. We heard evidence from the pharma sector, including significant support for the life sciences sector plan and for the Government’s approach, but I think it is fair to say that we were told that, although NHS pricing is not the only factor in investment decisions, it is a significant one. We heard evidence that the UK spends less proportionately on medicines than other comparable countries and that that reduces the pull-through for innovative medicines. It would clearly be a difficult decision to spend more on medicines, as that would mean spending less elsewhere in our NHS.

Does the Minister see the manufacturing fund as support in some way for investment decisions in the absence of progress on the NHS pricing discussions? Could he tell us whether the Secretary of State is involved in discussions between the Health Secretary and the pharma sector with regard to NHS pricing? I understand that discussions are ongoing, and I see the Under-Secretary of State for Health and Social Care, my hon. Friend the Member for Glasgow South West (Dr Ahmed), conferring with him. Perhaps he can confirm that those discussions are ongoing.

[Lincoln Jopp (Spelthorne) (Con)]

When the Committee held its one-off session on investment in life sciences, did it unearth the reasons why Sanofi, Eli Lilly and Merck have recently chosen to disinvest in life sciences in the UK?

[Dame Chi Onwurah]

I thank the hon. Member for that intervention. The Committee’s work is fascinating, so I certainly recommend he read the transcript. To summarise, we were looking specifically at the reasons for investment being pulled and, as I said, we asked the question in a number of different ways. The message that came back was significant support for the life sciences sector plan and the Government approach, but lack of certainty and clarity over NHS pricing and dismay about some aspects of NHS pricing and National Institute for Health and Care Excellence decisions. The hon. Gentleman is therefore right to point out that there was concern over the current and likely future pricing of innovative medicines, but that was not the only factor in those investment decisions. I ask the Minister to give us an update on those negotiations to the extent that he is able to do so, and to say whether this manufacturing fund is seen as potential compensation for investment in medicines and pricing as part of the NHS future plan.

--- Later in debate ---

[Kanishka Narayan]

I want to be in your good books, Madam Deputy Speaker, so I will proceed at pace in answering some of the questions raised.

I first thank the Members on the shadow Front Benches and in particular the hon. Member for Hornchurch and Upminster (Julia Lopez). I was sad that her generous welcome to me was not extended to this particular announcement. In particular, I was sad that she did not welcome the fact that out of their Tory fiscal wreckage we have managed to get £520 million for the British life sciences sector, that out of the economic damage they did to this country we have still managed to secure over £1 billion in investment from Moderna in the British life sciences sector, and that out of what we inherited from the Tory context we have managed to secure over £1 billion from BioNTech. Right across the board, there is a picture of stability, good jobs in the life sciences and broader technology sectors, optimism and, above all, an energy shared across Government, the private sector and academia.

[Lincoln Jopp]

Will the Minister give way?

[Kanishka Narayan]

I must proceed because, as I said, I need to be in Madam Deputy Speaker’s good books.

A particular concern has been raised about VPAG, another part of a longer-standing legacy from a Tory Chancellor’s austerity rampage for the life sciences sector in this country. The Government’s position is very clear: we will always put patients and taxpayers first. This Government are open to working collaboratively with the pharmaceutical industry, which is exactly why we have put forward a generous and unprecedented offer worth approximately £1 billion over three years as part of a review of VPAG, which ultimately industry did not take a vote on.

We remain confident in the life sciences as a driver of both economic growth and better health outcomes and our door remains open to future engagement. I know that regular conversations go on and while I will not update Members on the shadow Front Benches on every single meeting the Secretary of State takes, I can assure them that she is involved in both the particular conversations around VPAG and more general engagement with the life sciences sector.

I particularly thank my hon. Friend the Member for Newcastle upon Tyne Central and West (Dame Chi Onwurah), whose depth of experience in engineering prior to this House and extensive experience in this House, in particular through leadership of the Science and Technology Committee, is one that I take considerable inspiration from.

[Lincoln Jopp]

Will the Minister give way?

[Kanishka Narayan]

I will make some progress for now. My hon. Friend raised a particular point around synthetic biology, which is very close to my heart because I think that Britain has a particular opportunity in the convergence of engineering, AI and life sciences, and we are keen on seizing that to its fullest extent.

On the three particular questions from my hon. Friend the Member for Newcastle upon Tyne Central and West, foremost of which was about the size of the funding available, I will say a couple of things: first, that this is the largest fund of this nature announced in the history of the UK Government, to my understanding, with capital grants worth £520 million altogether; and secondly, that it is but one part of the overall funding package across Government if one considers the investments across Innovate UK, UKRI, the British Business Bank and beyond. I hope that some of the assurances around VPAG have answered the particular question posed there, and on regional impact, I point out that the first two grants from the scheme were made out to firms in Birmingham and Keele. I hope that is a starting indicator of my long-term hope; we will certainly monitor it.

[Lincoln Jopp]

On that, will he give way?

[Kanishka Narayan]

I am afraid I will not; I believe I have been relatively generous in welcoming contributions from across the House. On the point of regional impact, in addition to the midlands, may I join the shadow Front Benchers in welcoming—they do so with laughter and amusement—the collective efforts of our entire Northern Irish contingent? I will take away the strong point about Northern Ireland’s strengths in the life sciences sector; it will be embedded on my mind.

I thank the hon. Member for South Cambridgeshire (Pippa Heylings) for South Cambridgeshire for talking about investments. The only thing I will say on some of the announcements is that they have to be taken in the context of the wider global context for those firms, MSD in particular.

[Lincoln Jopp]

On the point of global context, will he give way?

[Kanishka Narayan]

If the Member listens, he may feel that his point is addressed in my claims. In at least one of those cases, a pause, rather than a cancellation, was announced and in the other, there have been a series of announcements globally regarding thousands of jobs, not only in the UK but beyond. As I said, I hope that the two announcements I mentioned, by Moderna and BioNTech, will give us some assurance that the life sciences sector in the British context is firing on all cylinders with Government support.

Finally, I note with thanks the important point on national security and IP made by the hon. Member for Lagan Valley (Sorcha Eastwood). It is top of mind for me in ensuring that we are not just powering economic growth and not just jobs and good health for people across this country, but doing the first job of Government to protect our national security.

Question put and agreed to.

Resolved,

That this House authorises the Secretary of State to undertake payments, by way of financial assistance under section 8 of the Industrial Development Act 1982, in excess of £30 million to any successful applicant to the Life Sciences Innovative Manufacturing Fund, launched on 30 October 2024, up to a cumulative total of £520 million.