100,000 new jobs by 2030

The Green Paper follows Labour’s stated aim to restore the sector’s growth rates to those seen under previous Labour governments and create 100,000 new jobs by 2030. They claim that achieving the 2012 share of global life sciences R&D would potentially attract an additional £10 billion in annual investment. 

A range of major sector initiatives are proposed, to include:

• reforming the Life Sciences Council 
• placing life sciences and innovation under the health secretary’s responsibilities
• strengthening the Office for Life Sciences (OLS) by working more closely with industry 
• introducing 10-year budgets (to replace the typical current 3-year cycles) for major funding bodies such as the National Institute for Health Research (NIHR) and UK Research and Innovation (UKRI). 

Collaboration between academic institutions, funders and industry players is vital for the translation of research into practical applications. The government plans to facilitate partnerships between universities, research institutions and life sciences companies. Key to this is a strategy to increase university spinouts. It is proposed to follow recommendations adopted by the last government to achieve this by reducing high university equity stakes in spinouts, which can hamper early investment, and universities taking an equity stake of 10% or less in exchange for providing less support.

Skills and training

The life sciences sector requires a highly skilled workforce to drive its advancements. The government is committed to enhancing skills development programmes to ensure the necessary expertise. This includes expanding access to life sciences education at various levels, from schools to universities, and promoting vocational training in specialised areas. 

A raft of reforms

Government is also committed to regulatory reforms aimed at modernising and unblocking the regulatory regime. This includes the creation of a Regulatory Innovation Office (RIO) to set and monitor targets for regulatory approval and provide strategic input on priorities. The government believes this will help to increase the number of industry sponsored clinical trials being conducted in the UK. There has been a significant drop in the speed of approvals by the MHRA post Brexit which has reduced the attractiveness of the UK for carrying out industry-led studies.

Modernisation of the NHS

There are ambitious plans to modernise the NHS and make it a better innovation partner for academia and industry. This will include a plan to increase adoption of new technologies such as cell and gene therapy products and streamline regulatory processes to enable clinical studies. Government has already announced it has secured £400 million of private investment to boost clinical trials, creating 18 new clinical trial hubs across the UK. Around 20% of this funding will also be used to create sustainable manufacturing innovation which will enhance the UK’s global competitiveness. The NHS strategy also includes plans to harness and utilise the UK’s wealth of health data through use of digital data and AI.

Planning reform

Reforms have already been announced to the planning system to address planning barriers to growth, channel finance towards growth priorities, and accelerate the transition to net zero. For the first time, local planning policies should identify appropriate sites for commercial development which meet the needs of a modern economy, for uses such as laboratories, gigafactories, data centres, digital infrastructure, freight and logistics.  Read more: Savills responds to National Planning Policy Framework 2024 consultation.

The business environment

In terms of funding initiatives these include enabling greater consolidation across all pension and retirement saving schemes, empowering the British Business Bank with a more ambitious remit and establishing a British version of the French ‘Tibi’ investment scheme to encourage investment in the sector.

Regarding improving the business environment, they are looking to maintain the patent box regime and the current rates of R&D tax credits. There will be an evaluation of the scheme starting with the life sciences sector which is another positive sign of prioritisation.

In conclusion, the new government’s commitment to supporting the life sciences sector is a promising development for the industry and the economy. Through strategic investments in R&D, fostering collaboration, enhancing workforce skills, supporting startups, implementing regulatory reforms, and promoting global competitiveness, the government aims to create an environment where the life sciences sector can thrive. As these initiatives unfold, they hold the potential to drive innovation, improve public health, and contribute significantly to the UK’s economic prosperity.

Further information

Contact Dr Steve Chatfield or Emma Andrews