Pharmaceutical Research and Development Spending
(Limited Text - Ministerial Extracts only)
Read Full debate
The Parliamentary Under-Secretary of State, Department of Health and Social Care (Lord Markham) (Con) (Maiden Speech)
My Lords, I thank the noble Lord, Lord Hunt, and the noble Baroness, Lady Wheeler, for arranging the debate on this vitally important topic. Despite this being the fifth time that I have spoken in the last four days, this is technically my maiden speech. I believe it is customary to start with a few personal remarks, and if that means that I go slightly over time, I beg the indulgence of being given time to make sure that I answer the points properly as well.
First, I thank Black Rod, the staff and the police for my fantastic introduction. I thank my noble friend Lord Nash for his encouragement for me to join the Lords, my noble friend Lord Courtown for his last-minute introduction of me when he had to step in, and my noble friend Lord Kamall, whom I have known since university in 1988. I thank all noble Lords for the kindness that they have shown me, and their welcomes. I especially thank the doorkeepers, who were fantastic to my family on the day of the introduction and have been fantastic at preventing me getting too lost in the myriad corridors.
On a personal note, I am the product of a very loving family. My grandparents and mum were nurses. My dads—I had two dads, for reasons I will tell noble Lords at some later stage—were a policeman and an advertising executive. My wife is a dentist. I went to the local comprehensive school and spent much of my life in and out of A&E—and continue to do so because I still, perhaps unwisely, play rugby. As a result, I like to think that I am very much the product of the public sector and the public system.
I have three children, whom I want to mention so that they are in Hansard: Ben, Sam and Xavi, who are surprised and bemused to now be known as “Honourables”. I have had a very varied career, and I hope to use that experience to add value to a lot of these debates. I have been a CEO, a CFO, an HR director, a strategy director and a chair in lots of different industries, including consulting, retail, media, health and construction. More recently, I have been an entrepreneur in many different fields. At the same time, I have had public sector experience: I was deputy leader of Westminster Council and have been the lead NED on MHCLG and DfT, and worked with the Department for Work and Pensions. I could be seen as a veritable jack of all trades—and if I could master one, it would probably be capturing the language of the House as quickly as possible. I ask noble Lords to forgive me while I learn.
Most of all, I want to talk about the type of Minister that I would like to be. I love learning about new industries, sharing ideas and using critical and constructive challenge to make better decisions. I like to say, “Two plus two equals five”. Noble Lords will find me wanting to share my thoughts and ideas and to hear and discuss theirs, ideally sitting around a table. I must admit that I find this a bit weird. There are a lot of good comments here about how we all want to grow the industry, and I would usually do this around a round table with a cup of coffee, where we are having a good discussion. Maybe that is something we can do as a follow-up to this.
I like to hear and share ideas. I know that sharing my thoughts at an early stage may sometimes get me into trouble—I like to brainstorm—and create many opportunities for people to make political hay, but I want to take that risk because, in our hearts, I think we are all here because we care about our country and want to make it a better place. I put my trust in your Lordships to share some of those thoughts at an early stage so that you can, hopefully, build on some of the good thoughts and politely help me discard the poor ones—I promise there will be many of those—and not to make too much political hay along the way, except maybe on some of the ideas that may be more naive.
Most of all, I would like to be known as a thoughtful Minister, someone who thought, listened and got things done. Part of the reason I am delighted is that I realise I will be here, hopefully, for many years and will make many friends along the way from all sides of the House. I was given this tie by the noble Lord, Lord Alli, 20 years ago on my birthday when I used to work with him at ITV. I still consider him a friend and hope to make many more here.
Turning to the subject at hand, I thank the noble Lord, Lord Hunt, and the noble Baroness, Lady Wheeler. I firmly believe that to achieve—dare I say it?— growth, growth, growth you have to pick sectors where the UK has an advantage and leverage them. I have some familiarity with the media sector. After the financial crash, there was a real push to say that it should be one of the sectors we did more about. We did very good things to leverage the key assets, the BBC and ITV. We built an ecosystem. We had critical mass around setting up the BBC in Manchester, alongside Granada, where we could attract the best people and companies. I see a lot of similarities in how we are talking about trying to create ecosystems here, which I will come to later. The BBC has BBC Worldwide, which was set up to leverage that fantastic institution; I feel there are parallels with many of the comments I have heard today about how we can use the NHS and clinical research to better effect.
Life sciences is a high-profile sector, as the noble Baroness, Lady Wheeler, mentioned, and it makes a major economic and scientific contribution to the UK. We have a long and rich heritage in this sector, from Edward Jenner’s development of the world’s first vaccine to our fantastic development of the Covid-19 vaccine. As previously mentioned, it is also responsible for £4.5 billion of R&D investment per year, which I believe is about 20% of the whole economy. It has led to such things as the £1 billion investment by Merck in the MSD UK Discovery Centre and the construction around King’s Cross of AstraZeneca’s £1 billion global R&D centre. Importantly, unlike many other tech sectors much of this wealth is spread across the UK and is not London-centric.
However, as noble Lords have rightly mentioned, we cannot rest on our laurels. There are many places where we should and want to do better. I would like to help us do so. That is why, as my noble friend Lord Goodlad mentioned, the Government published our Life Sciences Vision. I am happy to write later to say how we are following up on that and making sure we implement it. The vision reflects the sentiment of many noble Lords’ speeches that, to grow our proportion of global pharmaceutical investment, we must improve every aspect of the life science ecosystem.
I will address that by looking at four areas. First, as was mentioned, in terms of investing in R&D, in the spending review we have committed £5 billion for the sector by 2024-25. This is the largest uplift in public R&D spending we have ever seen. It includes a major uplift for the National Institute for Health and Care Research. The Government also committed to raise R&D spending to its highest level ever—£22 billion by 2026-27.
As part of this investment in R&D, the Government are particularly focused on investing in areas of global strength such as these. This includes £341 million for Genomics England, so ably chaired by my noble friend Lady Blackwood. We are determined to maintain our international leadership in this important field. Fitting in with a lot of the comments on the importance of big data in this field, we are also investing £200 million in a major new data for R&D programme.
Secondly, as acknowledged by noble Lords, we need to do more to make sure the NHS plays its full role. Amanda Pritchard, the chief executive of NHS England, has been unambiguous in stressing the criticality of research, even at times of great service pressure. I am sure we are all aware of initiatives such as the GRAIL blood test and the work being done on it. At the same time, I have had personal experience of the fact that in clinical trials we are not as effective as we should be. I think we all recognise this, and points were ably brought up by the noble Baronesses, Lady Wheeler and Lady Walmsley, and the noble Lords, Lord Patel and Lord Kakkar. I go back to my analogy of BBC Worldwide. Is there something we should be doing to leverage off the NHS more? It is something I would like to pick up further. Maybe we can have a discussion, perhaps around a round table, at some later point and share ideas on how to make the best of that.
Big data was another point brought up by the noble Baronesses, Lady Wheeler and Lady Brinton. We all know that there are fantastic opportunities in big data that we are not fully utilising. We all understand that there are lots of thorny issues around that, such as protecting patients’ anonymity, but at the same time there is a huge opportunity that we are not making the most of.
Thirdly, as the noble Baroness, Lady Walmsley, quite rightly pointed out, we need to make sure that the business environment and the whole ecosystem are as hospitable to inward investment as possible. I highlight the work to improve life sciences’ access to finance and to give a strong pipeline to SMEs. I do not mean just things such as the £500 million committed by the Chancellor to the long-term investment fund but initiatives such as the EIS, which I am sure many of us are familiar with, and the R&D tax credits so that we can get investment in at that vital stage. On attracting and developing the right ecosystem for all this, I would like to understand further whether there is scope to use our investment zones so that they can benefit this area.
My noble friend Lord Goodlad and the noble Baroness, Lady Walmsley, talked quite rightly about dementia and the potential of the dementia moonshot and asked whether we are really following up on that. I undertake to write to give noble Lords a full picture of where we are backing that. I was very interested in the insight of the noble Baroness, Lady Brinton, about new market venture capital and how we get this capital into this sector. It is vital. Again, these are all points that I would like to pick up around a table.
As far as I am aware, we are aware of the potential impact of the VPAS. I have been a CFO, and I understand that suddenly hearing that your sales line might go down by 15%, 20% or 30% is pretty important knowledge; I get it. I know that we are undertaking a consultation to understand how to make sure that this system works going forward. I think we all agree that there are a lot of good aspects and agree with the intent of what we are trying to do.
Fourthly, inspired by the Vaccine Taskforce, we are delivering a series of healthcare missions focused on the leading causes of death and disease. These missions will fuse private sector ingenuity with the UK’s scientific excellence, drawing in significant private investment in areas such as dementia, cancer and mental health, which were mentioned by many speakers.
I particularly thank the noble Baroness, Lady Bennett, for a lot of her thoughtful comments and for writing some of them beforehand. I realise that I am about to run out of time, so I probably cannot answer them specifically. I will be pleased to write to her. As an ex-economics student, I was interested in how she talked about understanding the externalities of a lot of the investment in drugs and their impact. I would like to turn my thoughts further to that when I get my feet further under the table.
The Government are confident that through Life Sciences Vision we will develop the end-to-end improvements required to attract an ever-growing proportion of pharmaceutical investment to the UK. At the same time, I hope noble Lords see that I, for one, am not resting on any laurels here. There is a lot more we can do and a lot that I want to learn from the wisdom and comments made in this Room. We will be relentless in picking up these opportunities.
With that, I once again pay tribute to the noble Lord, Lord Hunt, for securing this important debate and, in his absence, to the noble Baroness, Lady Wheeler. I reiterate my commitment to serving the House and Government faithfully in my role as Minister for as long as I have the honour to do so.