AstraZeneca

15:38:00

(Urgent Question):To ask the Secretary of State for Science, Innovation and Technology if he will make a statement on AstraZeneca.

As the largest company listed on the London Stock Exchange, employing more than 10,000 people and investing about £2.5 billion every year in the UK, AstraZeneca is a close and valued partner to this Government and is critical to the UK’s thriving life sciences sector. We saw that in the covid-19 pandemic, when AstraZeneca partnered with the University of Oxford to create a safe and effective vaccine that was manufactured and distributed around the world, saving millions of lives. This type of partnership for the prevention of illness is critical to achieving the Government’s ambition of reducing the burden on the NHS. AstraZeneca’s decision not to invest in Speke, Liverpool is therefore deeply disappointing and follows intensive work and collaboration between the Government and the company. This collaboration on Speke dates back to 2020 and led to an announcement at the spring Budget 2024 when AstraZeneca set out its intention to invest £450 million into its flu vaccine manufacturing facility. To secure that investment, the previous Chancellor provided assurance of His Majesty’s Government support, valued at around £90 million, subject to successful completion of due diligence. That support was based on His Majesty’s Government’s initial assessment of figures provided by the company. Both the previous Government and this Government have always made clear that full due diligence would be required before a final Government offer could be confirmed. Since the spring Budget, AstraZeneca confirmed a significant change in the composition of its proposed investment, resulting in a smaller level of research and development being conducted in the UK. As the shadow Minister would expect, that 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. In the spring, the Government will release our industrial strategy, containing a comprehensive plan for growing the life sciences sector. That will build on the significant momentum generated by the plan for growth, including delivery of the Oxford-Cambridge growth corridor, as well as the Budget announcement of the life sciences innovative manufacturing fund, the suite of inward investment announced at the international investment summit and the strategic partnerships announced with Oxford Nanopore and Eli Lilly.

Thank you, Mr Speaker, for granting this urgent question. Just five days ago, in another speech about growth designed to divert attention from the total lack of growth caused by Labour’s high taxes and anti-business approach, the Chancellor specifically praised AstraZeneca: she knew that the last Conservative Government had successfully negotiated a deal for Britain’s biggest public company to invest £450 million into Britain’s economy. Under the Conservative deal, AstraZeneca would have expanded its flu vaccine factory on Merseyside, creating new jobs, improving the UK’s pandemic preparedness and sending a clear message to the world that Britain’s life sciences sector is open for business. Instead, Labour has cut the funding that we agreed and has imposed a national insurance jobs tax. That has destroyed the business case for expanding the factory and the deal is now off. Will the Minister explain why the Secretary of State for Science, Innovation and Technology failed to stand up to the Chancellor when she cut his funding, destroying the deal and handing high-quality jobs and investment to our competitors? In the past 12 months, AstraZeneca has committed to investing more than £1 billion in Singapore, nearly £3 billion in the US and more than £450 million in Canada. It could have invested £450 million in our country, too, so what are the Government doing to bring back the jobs and investment that they have just turned away? By last July, all that was required was for Labour to confirm that it would proceed with our deal. AstraZeneca wrote to the Chancellor and the Science Secretary on 9 July, but received no reply. It wrote to the Secretary of State for Business and Trade in early July too, but he fobbed it off. The company did not receive its answer until last October. By then, it was too late to deliver the project and now the deal is dead. Will the Minister and the Science Secretary write to the Chair of the Science, Innovation and Technology Committee, the hon. Member for Newcastle upon Tyne Central and West (Chi Onwurah), offering to appear before her Committee to explain what went wrong and how such failures can be avoided in the future? Delivering this deal secured by the Conservatives was a big test of Labour’s economic credibility, and it has failed. In the same week that it talked about growth, it has botched a deal that was vital to our economy. Labour promised growth, but delivered failure and let Britain down again.

What utter nonsense. We endured 14 years of growth that even the shadow Minister’s own Back Benchers used to describe as anaemic and feeble. Average growth under Tory Governments is 1.2%; average growth under Labour Governments is 2.4%. We are far more likely to secure growth in the British economy under a Labour Government. The shadow Minister simply did not listen to what I had to say. The Conservatives sat on this so-called deal with AstraZeneca for four years. The process started in 2020, and it is interesting what was announced to the House and what was actually announced in the paperwork. In the House, the then Chancellor said that AstraZeneca had announced plans to invest to “fund the building of a vaccine manufacturing hub in Speke in Liverpool.”—[Official Report, 6 March 2024; Vol. 746, c. 845.] He did not make any mention in the Chamber of the money that was needed from his Department to be able to pay for it. The paperwork that attended that announcement stated: “AstraZeneca’s investment decision is contingent upon mutual agreement with the UK Government and third parties, and successful completion of regulatory processes.” That was absolutely typical of the previous Government: they thought that when they had announced something it had come to pass, but due diligence is needed to ensure the best possible financial advantage for the British taxpayer. We have seen clearly that AstraZeneca’s original intention last year was to deliver £150 million-worth of R&D, but then it decided to cut that to something like £90 million-worth. That was its decision, based on its own investment decisions, and we as a Government had to assess whether £90 million from the UK—as supposedly promised by the previous Chancellor—was the right amount of money to put into the pot, or whether it was better to offer slightly less. Unfortunately, at the end of that process AstraZeneca decided that it would not proceed. Let me make it absolutely clear to the hon. Member that this is the best country in the world in which to invest in the private sector. Some £63 billion of investment was secured at the growth summit last year, and £14 billion—[Interruption.]

Order. The shadow Secretary of State for Wales, the hon. Member for East Grinstead and Uckfield (Mims Davies), keeps pushing it a little bit. I think we should hear no more of that.

Thank you, Mr Speaker. And £14 billion was secured following the announcement of our artificial intelligence opportunities plan. We have cut the rate of corporation tax to 25%, which is the lowest in the G7. We are creating a pension mega-fund to be able to invest further. According to PricewaterhouseCoopers’ last CEO survey, we are, for the first time ever, the second-best place in the world to invest in the Government, and that is because we have a Labour Government, not a Conservative reject.

I call the Chair of the Science, Innovation and Technology Committee.

The UK Government are committed to growing the economy through increased R&D and advanced manufacturing. AstraZeneca tell us that it is committed to investing in the UK, which is where it is headquartered and where one of its largest customers—the NHS—is based. It is like hearing that two people are madly in love with each other, yet the wedding is off. I look forward to the Minister of State for Science explaining the background to this to the Select Committee when he appears before us next week. In the meantime, will the Minister confirm that the UK is committed to incentivising R&D investment? Will he set out the mix of R&D and manufacturing investment agreed to by AstraZeneca under the last Government, and to which it was committed when it dropped the deal? Finally, the deal, as well as growing the economy, would have made our pandemic supply chain more resilient by reducing our dependence on mRNA vaccines. Will he set out how he intends to address that?

It is good to hear from the Chair of the Select Committee. I want to make it absolutely clear that AstraZeneca is not leaving—people are not losing their jobs because of this decision. There are still 10,000 people employed by AstraZeneca in the UK and, for that matter, it is proceeding with its nasal-based flu vaccine for children, just in a different way. All of that is important. My hon. Friend asked about the precise details of the R&D mix that was part of the investment. As I said, it was to have been £150 million of investment. AstraZeneca decided to cut that to £90 million, which is why the contribution that the previous Chancellor had suggested of £90 million into that pot simply did not add up for the UK taxpayer, which is why we came to that set of decisions. However, she is absolutely right that we are fundamentally committed to the life sciences sector for the saving of life, for making sure that we have an NHS that can really deliver for people, and because we want to have valuable jobs that we do better in this country than anywhere else in the world.

I call the Liberal Democrat spokesperson.

This news makes for yet another disappointing day for the UK’s investment landscape. We could be a global leader in innovation, but ever since the previous Conservative Government’s scrapping of the industrial strategy businesses have been left with uncertainty. The life sciences sector is vital not just for economic growth, but for our health and technological innovation. It contributes over £43 billion to the UK economy, supports thousands of highly skilled jobs and drives breakthroughs in medicine and healthcare, yet in conversations that I have had with businesses, I have heard time and again how the UK’s fragmented approach to investment is holding them back. That is why I have highlighted those concerns in previous questions to the Secretary of State. The Government have promised to publish “Invest 2035” this spring, but right now companies still have no detail on what support will be available and when. Without urgent action, we risk more world-leading firms following AstraZeneca’s lead and taking their investments elsewhere. Will the Minister please confirm exactly when the final Invest 2035 strategy will be published? The Government said that the decision was based on value for money, so will the Minister and the Secretary of State also publish the impact assessment, so that we can see for ourselves?

I am afraid that I will have to write to the hon. Lady on that last question, as I am not sure precisely where we are with an impact assessment. She is absolutely right that the UK’s life sciences sector generated something like £108 billion in turnover in the financial year ending 2022—a sharp 13% increase on the previous year. We want to build on that. The sector has seen year-on-year growth since the financial year ending 2015, and turnover is now 40% higher than in the financial year ending 2022. We are keen to publish, as part of our industrial strategy, our precise plans for the financial services sector. We said that will be in the spring—it certainly still felt like winter in the Rhondda at the weekend, so I am afraid she will have to wait until spring has sprung.

AstraZeneca is a key partner in the Liverpool city region’s life sciences innovation zone, as is Maghull health park in my constituency, with its research and development plans. Will my hon. Friend confirm that the Government will engage with partners in the city region, including the University of Liverpool, the metro mayor Steve Rotheram, council leaders and the region’s MPs, to try to recover ground on this deal, which will add to the success we have already seen with AstraZeneca in the city region and across the country?

Regional mayors have an important role to play in helping bring investment into key areas. I am happy to ensure that the meetings that my hon. Friend has asked for take place. This has to be a joint venture between everyone. I want to underline that it is not the case that AstraZeneca is leaving the United Kingdom, or that it does not have confidence in the United Kingdom, because it clearly does—it invests more than £2.5 billion every year into the UK economy. It is a key partner of the UK and will continue to be so.

What a shame the Minister has chosen to substitute aggression for what should be regret for what is, whichever way he paints it, obviously a terrible failure of negotiation. I chair the all-party parliamentary group for life sciences, and I can tell the House that this is a terrible blow not just for Speke and Liverpool—the city of my birth—but for our vaccination development environment generally. The lack of this production facility means that there will be no pull for vaccination development in the UK and the various technologies that come with it. What will he do to replace that?

Of course we feel regretful. We would have preferred to get this over the line but that was not possible, in large measure because AstraZeneca decided that it did not add up in whatever particular way for it. The right hon. Gentleman makes one very good point: we want a manufacturing provision in the country, and my colleague Lord Vallance is working on that very closely with the sector.

Friday’s announcement was deeply disappointing. The Liverpool city region is home to one of Europe’s largest pharma clusters. The Government were prepared to put millions into the project with AstraZeneca, which it has now walked away from. Is that money still on the table for other viable life science projects in our region? Will the Government commit to meet our metro mayor, Steve Rotheram, to discuss that further?

That is the cleverest bid for finance that I have ever heard, so my hon. Friend gets an award for that. She is right that we stand ready at any point to assist key investments of this nature, especially in the life sciences sector. The difference between the amount of money that was theoretically made available by the previous Government and the amount that we were prepared to put forward was remarkably small. The issue is how to ensure that similar investments get over the line. Someone from the Department will meet Steve Rotheram.

How does losing £450 million of investment on Merseyside and into the wider north-west area equate with the Chancellor’s stated priority of economic growth?

The right hon. Lady puts it in a particular way, but it is not a way that is consonant with the facts. The fact is that this deal had not been signed or got over the line by the previous Government, who, as I have said, would quite often announce things and not actually deliver in the end. In spring 2024, the then Chancellor made it very clear in the documents that accompanied the Budget that all of this was contingent—his words, not mine—on due diligence. The then Government had not yet done the due diligence.

More than 5,000 people are employed at AstraZeneca’s Macclesfield campus, producing world-class medicines and contributing £1.8 billion in GVA and 1% of total UK exports. AstraZeneca has confirmed to me that the Speke decision does not impact Macclesfield, a site that it is committed to. Will the Minister confirm that the Government are committed to working with AZ so it continues to have a bright future in Macclesfield?

Yes, 100%. I know that my hon. Friend has visited AstraZeneca and spoken to it many times. He is absolutely right to note that there are, I think, 4,000 working at the Macclesfield site, and will continue to do so. I am sure that AstraZeneca has a very strong future in Macclesfield. Nothing in this decision changes that one iota.

We in this House often underestimate how many options companies such as AstraZeneca have on where to invest. The Minister is not known for taking no as an answer, so can I urge him to continue to make the case for this investment, be flexible on VFM and keep fighting for this specific deal?

Not necessarily for this specific deal, but certainly for a deal with AstraZeneca, yes.

AstraZeneca’s decision to pull its £450 million investment in the Speke manufacturing plant is a blow for the creation of jobs across the city region, including in my constituency. I commend my right hon. Friend the Member for Liverpool Garston (Maria Eagle) for her tireless efforts in trying to get this deal over the line. Will the Minister join me in recognising the brilliant work of the scientists at the facility, and will he meet me and colleagues to explain how he can guarantee investment in R&D in the city region going forward?

I would be delighted to meet my hon. Friend knows, as she knows, although I think it would probably be more useful for her if she were to meet Lord Vallance, who is the Minister for life sciences. My hon. Friend is absolutely right; we would of course much prefer this investment to go ahead and to have been able to get this deal over the line. However, it has not been possible, and we now have to look at different ways of ensuring that we strengthen the relationship with AstraZeneca. However, I would point to other investments that have been made in recent months, including in life sciences, to quite significant effect.

The Financial Times reports that, during its negotiations with the Government, AstraZeneca raised concerns about the vaccine plant, but also about the rejection of one of its breast cancer drugs and the drug pricing mechanism. Does the Minister agree that AstraZeneca’s rejection of his Government’s final offer is not the only concerning issue for our biopharma industry, and will he assure me that he is raising issues around the regulatory and reimbursement processes with the Health Secretary and the Treasury as barriers to growth in a sector already struggling with post-Brexit red tape?

The hon. Lady’s first point was on the voluntary scheme for branded medicines pricing and access, which is reduced to an acronym that is not really an acronym: VPAG. This is, as it says on the tin, a voluntary agreement between Government, the pharmaceutical industry and the NHS, which is designed specifically to ensure that we protect the NHS’s medicines budget. It is voluntary, and AstraZeneca has always been a party to it on a voluntary basis. I am not sure that is the problem the hon. Lady thinks it is—although, if she has further evidence, I would be happy to speak to her. I think she is also referring to the rejection by the National Institute for Health and Care Excellence of a breast cancer drug. This is the first time in six years that a breast cancer drug has been rejected by NICE, and it is obviously concerning for everybody who wants to be able to use these drugs. However, we have an independent and much-respected system in the UK. I stand by that independence; I am not going to undermine it.

May I say in the gentlest possible way to my hon. Friend the Minister that losing investment in Merseyside and the north-west is not compensated for by investment in the Oxford-Cambridge corridor, particularly as some years ago we lost Diamond Light Source from Daresbury? I would also like to ask him a question on a deeper issue beyond the normal party political dance: it’s their fault. it’s not, or whatever. When Kate Bingham, the heroine of covid and developing vaccines, finished she made excoriating comments about our civil servants and their ability to understand science and biological sciences. What is the Minister doing to improve that situation, so that distinguished people like Kate Bingham do not say that officials in the civil service treat this huge industry with suspicion and contempt?

If I might just refer to the first comment first, I am the Member for Rhondda and Ogmore, so I fully understand that investment in one part of the country is obviously great for that part of the country, but it does not necessarily mean that every part of the country is rising with everybody else. Trying to make sure that economic investment spreads across the whole of the United Kingdom, including in the north-west, the north-east and in the south Wales valleys, is a really important part of our historic mission. On my hon. Friend’s other point, AstraZeneca complained about the length of time 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 to the chief executive of AstraZeneca. We might need to learn better ways of informing our decisions about science.

Did the Government’s rise in national insurance contributions and the over £400,000 a year extra that AstraZeneca would have needed to pay for the site contribute to its decision to withdraw?

No.

I declare an interest as the chair of the all-party parliamentary group on vulnerable groups to pandemics. More than 1.2 million clinically vulnerable people are still shielding from covid because their mRNA vaccine does not provide efficient protection for immunosuppressed people. Will my hon. Friend set out how the Department is putting the UK at the forefront of international R&D in life sciences to support those very vulnerable people?

Not only have we set aside £520 million precisely to be able to invest in the life sciences industry with an innovation fund, we are very keen to work with specific businesses to understand how they can make more secure, long-term investment. The single most important thing for most people making an investment in the UK is whether they believe there is political, fiscal and financial stability in the UK. That is what we are absolutely determined to deliver. My hon. Friend makes a very good point about those who are immunosuppressed for all sorts of different reasons, whether their medication or a condition. I will take that point back to the Department.

The Chancellor said that economic growth is the most important thing and this was an opportunity to get some of that economic growth. This was an opportunity to get something over the line and the UK Government failed to deliver it. How can the House and the public trust anything the UK Government say? How can they say that this is the founding mission if they then fail to deliver for a region that could really do with that economic growth?

The thing is that spending taxpayers’ money has to be proven to be good value for money. That is why, whenever we are making an investment such as this, we have to make sure it delivers more return on investment than £1 for £1. When AstraZeneca made the decision to cut the R&D part of its budget from £150 million to £90 million, it made sense for the UK Government to look again at the amount of money we could legitimately put in on behalf of the taxpayer. If the hon. Lady had been in my place, I think she would have made exactly the same decision.

Does the Minister agree that the Chancellor’s announcement last week of investment in the Oxford-Cambridge corridor shows very clearly that the Government see a bright future for life sciences in the United Kingdom, and will he forgive me for giving a brief plug to a post-war new town—my constituency of Harlow—which would very much like to be part of that future?

There are all sorts of bids coming in now, none of which I am in charge of, but we have seen significant added investments in the UK since the autumn. For instance, Iberdrola is doubling its investment through Scottish Power from £12 billion to £24 billion over the next four years, and Blackstone has confirmed a £10 billion investment in Blyth in Northumberland. What is essential, however, is for us to ensure that that investment stretches across the UK, that we have the skills we need in order to deliver those investments, and that we have the economic structures in place to enable them to remain, because they are long-term investments, not just short-term ones. Also, sometimes, we have to tackle the over-regulation that exists in some elements of the economy, particularly in relation to planning, so that we can get down to making the decisions that the Tories should have made for 14 years.

The chief scientific officer has previously stated the importance of this investment in the UK’s pandemic preparedness. In the light of the announcement, what assessment has the Minister made of the impact on the UK’s ability to respond to future pandemics?

It is not entirely dependent on our AstraZeneca programme, and indeed, as I have already pointed out, the piece of work in which it was intending to invest—I hope I will get the science right—was changing the way in which it would create the nasal flu vaccine for children from an egg-based to a cell-based system. It has now decided not to do that, but to stick to the egg-based system. I think that if the chief scientific adviser or the chief medical officer has anything on which to update the House, he and/or she will do so.[Official Report, 12 February 2025; Vol. 762, c. 6WC.] (Correction)

Despite AstraZeneca’s decision, the UK biotech industry almost doubled last year to £3.4 billion, but it was concentrated in just a few companies. Will the Minister commit to looking at some of the trial research rules to enable smaller companies to work better with NHS trusts so that start-ups and local firms can prosper?

My hon. Friend is right: not only do we need to enable smaller companies to start up, but we need to enable them to grow to scale. Otherwise, the danger is that we develop the good idea, someone else ends up buying the intellectual property, and all the value disappears out the UK’s back door. When I met the husband-and-wife team who run BioNtech—they are amazing, not least in respect of some of the work they have done in developing immunotherapy, which is probably the stuff that saved my life when I had stage 4 cancer—they spoke warmly and glowingly about all the work that they want to do in the UK, alongside the work of AstraZeneca. As my hon. Friend says, we need to get small companies set up, to grow them, and to enable them to be world leaders like AstraZeneca.

Investment in highly paid industries producing good-quality research and development, and the spin-offs from that, are, of course, important to the economy and to long-term growth. I agree with the Minister that when it comes to using public money we have to be careful about how it is spent, and not just throw it at a company because it has threatened to walk away from investment. In fact, I should have thought that those on the Opposition Front Bench would be quite happy to hear the Minister talking about the proper use of public finance like a prudent Conservative Minister. My question, however, is this. Although due diligence had to be done, and it may well have been assessed that this was not a good use of public money, was the investment lost because of a lack of communication between the Government and the company during the assessment process, when perhaps the company could have been convinced that it could proceed, even with less support?

I will take support from wherever I can get it, so I am grateful to the right hon. Gentleman. It is a very simple point that when the Government invest in businesses of whatever kind, we have to make sure that we get value for money for the taxpayer, even when there is a very large cheque on the table. AstraZeneca decided to change the structure of its research and development, which is one of the reasons why we had to change the amount of money that we were prepared to put in, but the right hon. Gentleman’s other points are very good and well made.

Alongside other Members representing Milton Keynes, I attended the Chancellor’s speech last Wednesday and spoke to many companies, including those from the life sciences sector. There were two really important points that they wanted to make, after being reasonably pleased with what they heard from the Chancellor. The first was about the importance of talking up our world-leading universities, after the previous Government continually talked them down. Will the Minister commit that this Government will continue to sell our world-leading universities, including Oxford and Cambridge, on the world stage? The second point that companies wanted to make was that investing in life sciences right across the country requires a successful Oxford-Cambridge arc. Will the Minister commit to doing whatever it takes to make the entire corridor successful, including by getting a devolution deal for the midlands and speaking to his colleagues in the Ministry of Housing, Communities and Local Government to ensure that that happens?

Yes, and I agree with everything my hon. Friend says. The Oxford-Cambridge corridor is really important. Reading the newspapers over the weekend, I was intrigued by how many Conservative commentators kept on saying, “What I don’t understand is why the Conservatives didn’t do this over the last 14 years.” It is not enough simply to build the Oxford-Cambridge corridor; we need to make sure that we build on creative and scientific innovations at all our universities in the United Kingdom, and not just at Oxford and Cambridge.

We received terrible news from AstraZeneca over the weekend. It is businesses across the country, such as those in my constituency of Broxbourne, that create economic growth, not the Government. The Government have increased red tape and employer’s national insurance contributions. Can the Minister outline how he is promoting businesses and encouraging them to invest in the United Kingdom?

As I have already said, we had £63 billion of investment at the summit before Christmas, and we have had £14 billion of investment since Christmas. I have a specific responsibility for data in the Department for Science, Innovation and Technology, and the number of data centres investing in the UK is significant. We now have 500, which puts us third after the United States of America and Germany. We are determined to grow the economy. The hon. Gentleman is sort of right to say that it is the private sector that creates growth, but it is also true to say that the Government contribute to growth. For instance, if we manage to build 1.5 million additional homes in the UK, that will contribute to growth. If the Conservatives do not believe that, they are living in cloud cuckoo land.

The wider context of the issue before us today is that this country is at the forefront of the global life sciences sector, of which there are clusters across the UK. In my constituency of Stevenage, which was the first post-war new town in the Oxford-Cambridge corridor, we have GlaxoSmithKline, Autolus, and the Cell and Gene Therapy Catapult. Will my hon. Friend tell the House how this Government are committed to spreading growth in the life sciences sector across the whole country, and thank all our hard-working scientists?

That is precisely the job that Lord Vallance is engaged in. We are trying to make sure that our research and development budget across the whole of the UK is spent in a way that delivers economic growth and investment in companies that are start-ups, but also in ones that need to scale up. We are also working with the Department for Education to make sure that we have the skills that we need in the UK—not just to come up with a good scientific idea, but to develop entrepreneurialism and to be able to take an idea to market and make a living out of it.

I am grateful to the Minister for providing some insight into the way in which the Government and their Ministers look on economic matters. Does he appreciate that investment per capita in R&D is very much greater in America than in this country? There are now a range of incentives at federal and state level that will act as a draw to life sciences, notwithstanding what has happened in Washington over the past few days. What is there to tie a company such as AstraZeneca to this country? Why would it not look more favourably on America as a destination of choice?

To be honest, that sounded like a bid to send AstraZeneca to the United States of America. I do not think that is what hon. Members of this House should be doing; I think they should be standing up for the UK as the best place for AstraZeneca to invest. [Interruption.] There is no point in pointing at me like a child: that does nobody any favours. The honest truth is that AstraZeneca is and will remain one of the biggest investors in the UK economy.

No matter how the Minister tries to dress it up, this is a blow to the UK economy, to life sciences and to manufacturing. What message about the Government’s lack of support for manufacturing does this decision send to global investors and, importantly, to the local jobs market?

It does not send any kind of message like that. The point is that in the UK we have secured dramatic amounts of additional investment since the general election. What is interesting is that all the Conservative Members are praising something that was never delivered by the previous Government; it was only announced. It is like so many parts of the DSIT budget that I discovered when I became a Minister. Theoretically, the previous Government had said that they were doing this, that and the other, but they had not actually set aside a single penny, because they had not done a proper comprehensive spending review for many, many years. That is precisely the black hole that we have had to fill.

Given the protectionist policies of US President Trump, can the Minister confirm how he will seize the opportunity to make the UK the best place for pharmaceutical investment in the world?

Some of what I have already pointed out is really important. We have already said that we will have the lowest corporation tax rate in the G7, at 25%, and we are sticking with that. We have made sure that we are investing in our public services so that people can have a guarantee of proper public services in this country. One thing that affects many businesses in this country—I have heard it repeatedly—is that if we have 7 million people on NHS waiting lists, we will not get people back into work. I would argue that the public sector and the private sector both have a role to play in enabling each other to flourish. It is not a question of “private sector good, public sector bad,” or the other way around; the two have to work hand in hand.

For all the virtues of AstraZeneca, let us not forget that thousands of people suffered serious injury or death as a result of having the AstraZeneca covid-19 vaccines. Why, then, are the Government continuing to waste taxpayers’ money on indemnifying AstraZeneca against claims for civil liability brought by those victims of AstraZeneca vaccines?

I think the hon. Gentleman needs to speak to the hon. Member who spoke earlier—oh, he’s left. I actually believe that the vaccines saved lives; I do not believe that they lost people their lives. I am afraid that the hon. Gentleman and I will never be united on that front.

A pattern is forming around this not so new Government’s ability to negotiate effectively, from their disastrous approach to Chagos to the terrible deal with train unions and this latest debacle with AstraZeneca. Is it fair to say that when this Labour Government negotiate, Britain loses out?

It is almost sad, sometimes. I just wish the hon. Member had been here for the last 14 years. I wish he had been here when we had endless strikes in every single part of every Department and we could not get the NHS waiting lists dealt with because we were not paying our nurses and our doctors properly. The first thing that we did was a deal to get them back to work. The hon. Member thinks that somehow or other that is buying off the trade unions. It is not. It is making sure that the people who work in our public services are properly rewarded, get back to work and get this country back on its feet.

The Minister said that the numbers no longer added up for AstraZeneca, but in response to the hon. Member for Sleaford and North Hykeham (Dr Johnson), he said that employer national insurance contribution increases were not a factor. How can both those things be right? When I speak to the local science sector and to businesses like Labcorp in my constituency, they say that employer NICs have a massive impact. Can the Minister really say in all honesty that he does not think that this Government’s changes to employer NICs had an impact on the deal?

First, let me clear up a point about national insurance contributions. I know that the Conservative party likes to bang on about them, but many people do not know that 50% of businesses and organisations in the UK will pay either exactly the same amount of national insurance or less. That fact is not often, if ever, repeated by Conservative Members. Secondly, the hon. Gentleman asks whether AstraZeneca had cited national insurance contributions as a reason for withdrawing. It has not, so far as I am aware. I would not tell the House anything that I did not believe to be true.

I thank the Minister for his answers, and I have a respectful question. The axiom “it takes money to make money” is a foundational policy for many businesses but, for some of us in this place, another phrase comes to mind: “penny wise and pound foolish.” Saving a little now may help a lot in the future, so will the Minister kindly and respectfully explain how the Government intend to encourage long-term, renewable investment so that businesses can rely on the Government to fulfil their obligations? How will the Minister ensure that companies throughout this great United Kingdom of Great Britain and Northern Ireland feel that growth and investment will be supported and fostered?

I could read out the long list of investments made in the last few months, except I do not think that Mr Speaker would let me. I do not think we have time, and you would get bored with me, Mr Speaker. The hon. Member makes an important point. At the moment, I am engaged in negotiations on a significant possible investment. We must ensure that we are delivering value for money for the British taxpayer, and that we are not throwing money away unnecessarily. Of course, there comes a moment when we have to make a judgment, and we made a judgment that came remarkably close to the £90 million offered by the previous Chancellor of the Exchequer, despite the fact that AstraZeneca’s R&D contribution had gone down from £150 million to £90 million. We made a significant offer, but for whatever reason, it did not get it over the line. Obviously, we always want to get deals over the line if we possibly can, and there are competing demands for different kinds of investment, but I assure the hon. Member that our aim is always to try to make sure that we are at the forefront of all the nations seeking such investment, especially in this kind of technology. The hon. Member is right about Northern Ireland. I, as a Welshman, bang the drum for Wales, and he bangs the drum for Northern Ireland—and quite rightly so.