Life Sciences Innovative Manufacturing Fund

Chi Onwurah Excerpts

Wednesday 22nd October 2025 Commons Chamber

[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

Thank you, Madam Deputy Speaker. It is a great pleasure to speak to you on this occasion to welcome the ambition behind the life sciences innovation manufacturing fund and, indeed, the Government’s positive support for life sciences, with their belief that Government can act to support industry in general; it is not simply a matter of getting out of the way. That is in sharp contrast to the last Conservative Government’s approach to industry, allowing a gentle decline and deindustrialisation in our nation. To be fair, the series of Conservative Governments chopped and changed their approach to industrial strategy so often it was difficult to know exactly where they stood. Unlike them, Labour is committed to the life sciences sector.

Labour published its plan for life sciences in opposition, which included 10-year funding commitments for key research bodies aimed at putting an end to the short-termism that undermines economic growth and scientific success. Now in government, I welcome Labour’s commitment to the life sciences sector plan—developed in close co-ordination with the Government’s 10-year health plan—which aims to support cutting-edge research and turn that into real-world results, with new treatments, faster diagnoses and more lives saved. It is about making sure that breakthroughs happen here in this country, creating jobs, improving lives in every part of the country and driving growth.

As the Minister said, the life sciences are a strength of our country—they are often described as a jewel in the crown of the British economy—and we all know that success in life sciences leads to positive, wide-reaching benefits across the country for the economy and our health.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

You mentioned the sector’s relevance and benefit to the whole of the United Kingdom. Would you agree that Northern Ireland has a rich manufacturing and life sciences heritage and that we have a huge role to play?

[Sorcha Eastwood]

I apologise.

[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.

[Matt Rodda (Reading Central) (Lab)]

My hon. Friend is making some interesting points about investment decisions. Has her Committee also investigated why some decisions have been made to bring investment into the UK, such as the recent decision about investment in Oxfordshire? As part of that, is there a parallel need to explore where more could be done to attract further investment through perhaps greater supply of trained workers, better transport, better access to land for development, and so on?

[Dame Chi Onwurah]

My hon. Friend makes an excellent point. My Committee has looked at some of the reasons for investments, such as those he sets out, and it is worth emphasising the strengths of the UK, some of which I have mentioned. We have a really strong life sciences sector, and specifically skills at every stage in the UK life sciences ecosystem, together with R&D tax credits, which is another point of incentivisation, and the fact that our NHS offers a fantastic opportunity to test and trial new medicines with a population that is heterogeneous and with population data records that are second to none. So there are many reasons why pharma and life sciences companies are continuing to invest in our country, and we have a fantastic ecosystem of life sciences start-ups and scale-ups.

That brings me to the final question I want to put to the Minister, which is on the regional impact of the fund. The Minister mentioned on a number of occasions that the fund will drive investment and growth across our country. As part of the Committee’s inquiry into innovation and regional growth, we heard of significant disparities in investment, particularly in access to capital and research funding from UK Research and Innovation and in funding and investment between the regions of our country and the greater south-east, otherwise known as the golden triangle. Manufacturing is well distributed across the United Kingdom; we heard earlier about the opportunities in Northern Ireland. Can the Minister tell me whether there will be a regional dimension to how the funds are disbursed? I hope that the extent to which the funds are regionally distributed will be monitored, but does he expect that this funding will be distributed across the country to drive growth in every corner of the country as he said, and that it will not perpetuate existing regional inequalities?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.