Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of whether any disinvestment decisions have been taken in the UK because of the rebates imposed on companies through the Voluntary Scheme for Branded Medicines Pricing and Access.

The Government has considered in broad terms the link between volume-based rebate payments in our medicine pricing schemes and various kinds of investment in our impact assessment of recent updates to the statutory scheme for branded medicines pricing, which operates alongside the voluntary scheme for branded medicines pricing and access (VPAS).

There are several factors which influence company investment decisions in any particular country or region. Available evidence suggests that supply side factors, such as availability of expert scientific labour and favourable tax conditions are of greatest significance in the decision on future investment. However, we understand that price regulation schemes such as VPAS may be a consideration in the decision to locate some investments, which is why we are committed to agreeing a successor voluntary scheme to VPAS that supports a strong United Kingdom life sciences sector.