Seen by most as life-sciences friendly, the UK Government’s 2024 Autumn Budget not only pledges to increase funding for the country’s ailing National Health Service (NHS), but to dedicate additional cash to R&D, and incentivise manufacturing through a new GBP 520 million Life Sciences Innovative Manufacturing Fund (LSIMF).
Addressing the Woes of the NHS
The NHS could not be overlooked in the first budget delivered by the new government’s chancellor Rachel Reeves on October 30. As one of the Labour Party’s key campaign targets and an area the Secretary of State for Health and Social Care Wes Streeting has promised to overhaul as part of a 10-year plan, Britain’s public health service has become a priority for Keir Starmer’s government.
Understaffed and riddled with backlogs and long waits due to a chronic lack of funding, the NHS will get an injection of GPB 22.6 billion over the next two years thanks to the new budget — the biggest NHS spending increase since 2010. With the funds, the government says it aims to drastically increase patient appointments as well as upgrade facilities, create new surgical hubs, and provide more diagnostic scans.
While somewhat optimistic, critics were quick to point out that due to the current state of the NHS, these funds are insufficient and that structural changes are also required. “On the whole, this budget has been a starting point for the investment and reform that is needed to begin to stabilise the trajectory of NHS performance, but it is not enough for the system to deliver the wholesale shift needed for a health and care system fit for the future,” said Siva Anandaciva, chief analyst at healthcare think tank The King’s Fund.
R&D Stimulus
Recognizing Britain’s research capacity and potential, the new budget also provides a boost for research and development with an investment of GBP 20.4 billion. Additionally, it pledges to fully fund the UK’s association with Horizon Europe, the EU’s EUR 95 billion research funding programme, and increase the Department for Science, Innovation and Technology’s (DSIT) R&D budget to GBP 13.9 billion.
Reactions among the research community were mostly positive. “We are pleased that the government acknowledges the critical importance of R&D and the UK’s exceptional strengths in research and innovation. We look forward to collaborating with them to build on these efforts,” said Professor Gurdyal Besra, President of the Microbiology Society.
“By recognising innovation as one of the seven pillars of its Growth Mission, alongside the commitment to establish 10-year budgets … and a roadmap to rebuild the NHS, the Government is signalling an important shift to longer-term thinking. Stable, sustained funding is crucial for fostering productive partnerships between academia, industry and the NHS, and enabling the kind of transformative research that improves the lives of people across the UK,” Andrew Morris, president of the Academy of Medical Sciences asserted.
The news was also well received by industry groups. “Increasing funding for the National Institute for Health and Care Research (NIHR) will help the government improve the environment to deliver clinical trials,” remarked Richard Torbett, chief executive of the Association of the British Pharmaceutical Industry (ABPI).
Some, however, were sceptical. Sharon Todd, CEO of the SCI forum pointed out: “R&D relief being maintained won’t turn the UK into a science superpower – only a material increase will help a sector that is so vital to scaling up and economic growth.”
Manufacturing Push
The new budget has also set out to encourage manufacturing through a new capital grants scheme, the Life Sciences Innovative Manufacturing Fund (LSIMF). With the stated aim of building Britain’s resilience for future health emergencies and capitalising on the UK’s research and development capabilities, the fund is looking to “enhance and accelerate affordable access to mature, new and emerging life sciences products for both pandemic and non-pandemic scenarios” with up to GBP 520 million in capital grants.
The life sciences industry has demonstrated its approval with ABPI’s Torbett recognising that “despite the tough fiscal environment, today’s budget is a clear indication that the government sees life sciences at the heart of its growth mission.” Torbett further said the fund “will be crucial in helping to capture high-productivity investment, and create valuable jobs at a time when they are most needed.”
“Today’s Budget rightly puts the life sciences sector at the heart of UK economic growth,” agreed Steve Bates, CEO of the UK Bioindustry Association. Bates also appreciated the government immediately backing up its promises. “It’s great to see the GPB 520 million Life Sciences Innovative Manufacturing Fund had its website open for business within an hour of the statement.”
After innovative pharma’s struggles with the previous government over drug rebates, it remains to be seen how the relationship between the industry and the country’s new leadership will evolve. “We look forward to working with the government to boost our research health and life sciences ecosystem further,” said Torbett.
