Life sciences response to 2024 Autumn Budget

Announcement of the UK Government’s 2024 Autumn Budget on 30 October marks the first Labour budget in 14 years. It pledges to benefit key industry sectors across life sciences including R&D, innovation, manufacturing and medicine.

Commitment to manufacturing

The Association of the British Pharmaceutical Industry (ABPI) backed the proposed measures to enhance life sciences competitiveness in the UK. For instance, the £520 million life sciences innovative manufacturing fund “is very welcome, and will be crucial in helping to capture high-productivity investment, and create valuable jobs at a time when they are most needed,” remarked Richard Torbett, Chief Executive, ABPI.

Supported through £16 million in funding, a programme helping SME manufacturers to adopt technology and digital skills is set to persist into 2025 and expand into all regions of England, according to the Made Smarter Adoption programme.

“Over the last five years Made Smarter has transformed countless SME manufacturers,” stated Donna Edwards, Director of Made Smarter’s North West adoption programme.

With investment set out in the Autumn Budget, “hundreds of thousands more SME manufacturers will get access to technology advice, leadership, and skills training, as well as grant funding for digital internships and technology projects. These interventions will boost productivity, growth, create new high value jobs and decarbonise SME manufacturers across the country” Made Smarter explained.

Protecting R&D

With R&D spending a “catalyst” for economic success, according to Dr John Lazar, President of the Royal Academy of Engineering, “it is encouraging that the Chancellor is providing much-needed stability for our research community by protecting core R&D budgets,” stated Professor Andrew Morris, President of the Academy of Medical Sciences.

Beth Thompson, Chief Strategy Officer at Wellcome echoed this sentiment, emphasising the importance of protecting these budgets “even when times are tough”. However, the Autumn Budget provides some relief via additional funding for the strained NHS, a welcome outcome considering for example, that “record numbers of cancer patients are having to wait longer than they should to begin their treatment”, explained Naser Turabi, Director of Evidence and Implementation at Cancer Research UK.

Moreover, “the Government’s commitment to fully cover the cost of the Horizon Europe programme is essential for advancing medical science and addressing global health challenges across borders and we encourage the UK research community to actively pursue these funding opportunities.

“Stable, sustained funding is crucial for fostering productive partnerships between academia, industry and the NHS,” Professor Morris continued.

Specifically, “protecting the science budget, despite the challenges facing public finances, and investing £20.4bn in 2025/26, will create conditions that generate new knowledge, boost productivity and unlock opportunities for every corner of the UK,” Sir Adrian Smith, President of the Royal Society commented.

“There is clear recognition that delivery of net zero and support for innovation in growth sectors, like AI, will be key to capturing these economic opportunities,” Sir Smith highlighted. 

Autumn Budget – looking ahead

However, it is important to be realistic, urged Sharon Todd, CEO of UK-based Innovation Network SCI. “R&D relief being maintained won’t turn the UK into a science superpower – only a material increase will help a sector that is so vital to scaling up and economic growth.

“A strategy for industry is one thing, but with huge tax incentives in Europe and the US, the UK is set to miss out on the 240,000 extra jobs and $230 billion of added value the clean tech and life sciences revolutions could otherwise bring the UK in the next five years.”

Therefore, to safeguard future economic growth, “the opportunity is now” for science, medicine and R&D sectors to take advantage of what the Autumn Budget has to offer, signals Todd.