Science Minister Sir Chris Bryant has revealed that a proposed investment deal between the Government and AstraZeneca will not proceed as it did not "add up for the UK taxpayer". He expressed to MPs the Government's regret over the failed plan, stating they "would prefer to have got this over the line". The pharmaceutical giant had planned a £450m investment in a vaccine manufacturing plant in Merseyside, but pulled out claiming Labour failed to match the previous government’s offer of support.

This decision overturns an announcement made by then-chancellor Jeremy Hunt at last year’s March budget, which would have seen AstraZeneca expand its existing facility in Speke. In response to a question from shadow science secretary Alan Mak in the Commons, Sir Chris explained that AstraZeneca reduced its contribution and the deal "simply didn’t add up for the UK taxpayer". He informed MPs: "Since the spring budget of 2024, AstraZeneca confirmed a significant change in the composition of their proposed investment, resulting in a smaller level of research and development (R&D) being conducted in the UK.

"As (Mr Mak) would expect, this change in AstraZeneca’s UK investment resulted in a corresponding change in Government support. Our revised Government offer sought to ensure value for money for the taxpayer and followed due diligence of the investment put forward by AstraZeneca. "We remain closely engaged with AstraZeneca as we develop our new industrial strategy, build a health system fit for the future, and drive up economic growth.".

Sir Chris slammed the Tories for holding onto the "so-called deal" with AstraZeneca for four years because the investment was "contingent upon mutual agreement with the UK government and third parties". He continued: "This was absolutely typical of the previous government, they thought that when they’d announced something that it had come to pass. "But, actually, what you have to do is due diligence to make sure that you’re securing, for the British taxpayer, the best possible financial advantage.".

The minister claimed the Government made a "significant offer" to AstraZeneca which was "remarkably close" to the £90m promised by the predecessors. Ex-minister Kit Malthouse, a Conservative, described the situation as "is obviously a terrible failure of negotiation" on the part of the Government. He expressed his dismay, saying: "This is a terrible blow, not just for Speke and for Liverpool, the city of my birth, but also for our vaccination development environment generally.

"The lack of this production facility means there won’t be a pull for vaccination development in the UK and the various technologies that come with it. My question to the minister is what’s he going to do to replace it? " In response, Sir Chris admitted: "Of course, we feel regretful about this. Labour MP for Blackley and Middleton South, Graham Stringer, said: "We would prefer to have got this over the line, and it wasn’t possible in large measure because AstraZeneca decided that it didn’t add up in whatever particular way for them." He also expressed his concern: "Losing investment in Merseyside and the North West is not compensated for by investment in the Oxford Cambridge corridor".

Sir Chris, the MP for Rhondda and Ogmore, voiced his understanding that "investment in one part of the country is obviously great for that part of the country, but it doesn’t necessarily mean that every part of the country is rising with everybody else". He added: "AstraZeneca have complained about the length of time that all of this has taken, as I say it started in 2020 and it was only in 2024 that the first announcement was made, as I understand it, by a text message from the then-chancellor of the Exchequer (Jeremy Hunt) to the chief executive of AstraZeneca. We might need to learn better ways of informing our decisions about science.".

The Chairwoman of the Science and Technology Committee, Labour MP Chi Onwurah, likened the fallout of the deal to "like hearing that two people are madly in love with each other and the wedding is off". She stated: "The UK Government is committed to growing the economy through increased R&D in advanced manufacturing, AstraZeneca tell us they are committed to investing in the UK, which is where they are headquartered, and where one of their largest customers, the NHS, is based.".

Sir Chris was adamant that AstraZeneca isn’t going anywhere, insisting: "There are not people losing their jobs because of this decision. There are still 10,000 people employed by AstraZeneca in the UK.". On Friday, an AstraZeneca spokesperson confirmed the decision's reversal, saying: "Several factors have influenced this decision, including the timing and reduction of the final offer compared to the previous government’s proposal.".