AstraZeneca Speke, AstraZeneca, c Google Earth snapshot

The facility would have been constructed close to the firm's existing Speke campus. Credit: Google Earth

Rotheram ‘deeply disappointed’ as AZ pulls £450m Speke plan

Pharmaceutical giant AstraZeneca cited a lack of government support as the reason for cancelling its plans.

The current Labour government significantly reduced the offer of state support originally proffered by the Conservatives for the £450m vaccine facility, according to AstraZeneca.

A spokesperson for the firm said: “Following discussions with the current government, we are no longer pursuing our planned investment at Speke.

“Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government’s proposal.

“The site will continue to produce and supply our flu vaccine, for patients in the UK and around the world.”

The news comes just two days after Mayor of the Liverpool City Region Steve Rotheram praised chancellor Rachel Reeves for “smashing through the barriers to growth”.

Since Friday’s announcement, The Financial Times has reported that AstraZeneca rejected £80m of government funding for the facility last week and that other factors – including that the NHS rejecting one of AZ’s drugs – may have had a bearing on the decision.

Back in March, Rotheram described AstraZeneca’s planned investment as a “vote of confidence” in the city region’s efforts to build its health and life sciences sector.

He described the U-turn as “deeply disappointing”.

“Liverpool City Region Combined Authority has not been party to the negotiations between government and AstraZeneca, which have taken place over many months,” he said.

“However, we have worked tirelessly to develop a comprehensive package of recruitment and training support to help convince AstraZeneca that further investment was the right option.”

While the scheme now seems dead in the water, the mayor is not giving up hope and remains determined to plough the city region’s life sciences furrow.

“I’ll be working with the government and AstraZeneca – who have enjoyed a long and productive presence in the city region – to see if focused talks can take place,” Rotheram said.

“Whatever the outcome, our mission to strengthen our health and life sciences sector remains unchanged.

“Liverpool City Region is already a powerhouse in science and research, and our ongoing support packages will ensure that we continue to grow and innovate, leading the way in tackling future global health emergencies.”

Rotheram also pointed out AstraZeneca’s decision would not impact the firm’s existing operation in Speke.

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Smashing through the barriers of growth and immediately concussed. Well done Labour for your joined up negotiations.

By Ann Field

Your mate Andy Burnham would never have allowed this to slip from Manchester’s grasp. Back to chasing your pie in the sky tidal barrage scheme.

By Roy

Region shafted of investment to the tune of near half a billion by central government, but stumps up the funding for the vanity project of old trafford, same old story.

By Troth

They rejected a £80m grant , did they want more , or has the business case weakened .

By Wislon

This is hugely disappointing from the Labour Government and the news locally that Steve Rotheram wasn’t consulted or contacted. What was A
Maria Eagle doing in all of this no communication between all the interested parties? This is not the first time a Labour Government has ignored Luverpool. I really hope the hopeless electorate here use their heads instead of their hearts at the next election?

By Liverpolitis

A blow to the city regions aim to be a major science/ Pharma cluster ., how can a city region with a huge number of labour MPs a labour mayor and 6 labour local authorities not ensure a labour government backed this important investment. I think the MPs must have been asleep

By George

A poor look for Steve and his minions at the CA. Asleep at the wheel on this one.

By Anonymous

I would never vote for them again.

By Anonymous

What a disgrace, Liverpool gets absolutely zero investment, meanwhile Oxford and Cambridge (already very affluent) will get more money. “Liverpool City Region Combined Authority has not been party to the negotiations between government and AstraZeneca, which have taken place over many months,” – why? he should have demanded a seat on the table from the very start, he should have been on the phone to Rachel Reeves asking why

By GetItBuilt!

Reading the full details, it was clear AZ’s decision was about more than just this investment. They wanted changes to the NICE guidelines regarding drug pricing in the NHS and were trying to use this investment as a negotiating tool. Whilst disappointing that the LCR is not getting this investment, it is the right decision given the circumstances.

By Anonymous

Why do AstraZeneca, need taxpayers money? Aren’t they a fantastically wealthy company? This seems another example of regionalism to me, and after last week’s announcement from the Chancellor, it is pretty clear that this government, is no friend of the North.

By Elephant

Same week Rachel Reeves announced help for Oxford and Cambridge. Manchester and Old Trafford even got a few mentions. Liverpool just isn’t taken serious and it’s easy to see why.

By Jim

The Govt signing off £100m public money bung to the closed Robin Hood Airport, despite the now Chancellor blocking expansion at Leeds Bradford airport. Now this.

What’s this Govt’s approach to public spending and private investmenst?

By Bingo Hall

So this lost, and the up-to-£335 million Port of Liverpool Relief Road scrapped by Rachael Reeves in October. It doesn’t look like London Labour is very bothered about economic growth in Liverpool, or even much outside the South East.
Still waiting to hear anything from Rotheram or LCRCA about the dock road being pulled or any attempt to push back on it; they all seem happy enough to let the Rimrose Valley nimby dogwalkers enjoy their win.
Anyone would think that nobody doing economic development in the Liverpool City Region knows what they are doing or what Westiminster or big businesses are up to, or thinks waving Mayor Steve’s imaginary tidal barrage round will be enough of a distraction from the fact that nothing at all is being delivered. Unlikely GM would find itself in this position…

By Rotringer

Speke is more a manufacturing plant rather than a centre for R&D right? That suggests the decision was more to do with the lack of a customer in the NHS

By Anonymous

Disappointed? The time for “focused talks” has been and gone, Where was Steve Rotheram? Prioritoising their commitment to the party over their representation of the city. This was supposed t be one of the city’s new and key growth areas.

Too much time, money and energy spent on the fantasy barrage idea, and not much time spent actually achieving anything meaningful for the city in the here and now,

By JA

Although I sympathise with Liverpool. Old Trafford so far is getting nothing from Reeves. She mentioned it to cover up ,the continued Southern bias in spending.

By Elephant

Those nasty tories…..oh wait. Business invests and goes where it feels welcome and supported

By Reality check

I thought that Reeves and the rest of them were solely focused on growth .Is Mr Rothertham going to tears this Liebourgovernment to shreds like he would if it was the Tories in power? No . Hypocrite .

By Anonymous

Rotherham should resign and allow someone with some drive and real ambition take over from him. He is clearly out of his depth . Manchester has got massive investment from Tory and Labour governments alike because Andy Burnham comes up with sound but ambitious development plans and programmes. Rotherham has nothing to offer that is either sound or ambitious.

By Anonymous

This makes grim reading, not least for Mayor Rotherham. A Labour metro mayor nowhere near negotiations for the first significant inward investment on his long watch? Ah, but never mind: we have a fantasy tidal barrage to pursue.

By More Anonymous than the others

Very disappointing from Labour, I hope people remember this.

By Anonymous

What is Rotheram doing now about the Littlewoods site, with C&C’s history this looks very unlikely, he’s missed the AZ debacle and I trust he is not asleep on this one too?

By Wake up Sleepy Steve!

AZ just looking for a bigger grant. How about no grants for publically traded companies. Plough the money into SMEs instead.

By Anonymous

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