Home advantage?

The UK can’t just be a life sciences lab – we need manufacturing success too

Rachel Reeves is right. The UK is at the forefront of life sciences, with world-leading research and innovation. But in my opinion, there’s a big hole in the plan the Chancellor outlined in her recent growth speech: the UK isn’t turning enough of that research into real-world impact.

We excel at discovery, but when it comes to manufacturing, we’re falling short.  Groundbreaking science happens here, yet companies too often take their ideas overseas. And who can blame them? The UK lacks the facilities, incentives and policy support to keep manufacturing at home.

Without tackling this head-on, talk of becoming a science superpower feels more like wishful thinking than reality.

Over the past two decades, manufacturing’s contribution to the UK’s GDP (across all sectors) has halved. That’s not just a statistic; it’s a warning sign. While the UK has watched this decline, other countries in Europe and the US have been investing, upgrading their manufacturing capabilities and securing their industrial futures.

The problem isn’t a lack of ambition from UK businesses. It’s the environment they’re operating in. Scaling from research to full production is an uphill battle, with ageing infrastructure, complex regulations and little cohesive strategy from policymakers.

If we’re serious about being a global leader in life sciences, we can’t rely on other countries to commercialise the ideas we develop here. The government talks about investment, but without a clear strategy to bridge the manufacturing gap, businesses will continue moving operations to more supportive environments.

The reality is stark. Companies face outdated facilities, high energy costs, fragile supply chains and a growing skills shortage. Instead of proactive solutions, we’re stuck with reactive policies that don’t address the core issues.

But this isn’t just about economics. It’s about resilience. Countries that invest in end-to-end capabilities, from research to manufacturing, attract and retain the most innovative businesses. Without strong domestic manufacturing, the UK risks becoming a hub for ideas that are commercialised elsewhere, missing out on jobs, economic growth and technological leadership.

The question isn’t whether we can afford to invest in manufacturing. It’s whether we can afford not to.

In the Chancellor’s speech at the end of January – now billed her ‘growth speech’ – she highlighted the usual suspects: London; Oxford and Cambridge.

No one’s denying they’re important hubs, but they’re not the whole story. Life sciences strengths exist across the UK, and if we want real growth, we need to stop acting like the future of the industry begins and ends in the South East.

The North East has a pharmaceutical sector that contributes significantly to the economy, with companies covering everything from drug discovery to large-scale manufacturing. Liverpool is a hotspot for vaccine development and biologics production, while Manchester leads in genomics, diagnostics and digital health.

The West Midlands has a strong MedTech and clinical trials ecosystem, and Wales is home to life sciences firms making an impact globally. Scotland is driving innovation in pharmaceutical manufacturing, with a focus on digital technology and more sustainable production methods.

If the government is serious about growth, it can’t keep funnelling attention and funding into the same few postcodes. Overconcentration leads to skyrocketing costs, stretched infrastructure and fierce competition for talent, while regions with huge potential are left overlooked.

Take biotech spin-outs. Between 2011 and 2021, Oxford, Cambridge, Imperial and UCL generated 524 spin-outs, including 172 in life sciences. That’s 50 percent more than the next ten universities combined. Impressive, but it highlights how investment is concentrated in just a few key areas.

We work with businesses across the country and we can tell you one thing. Innovation doesn’t care about geography. What matters is having the infrastructure, talent and investment to help businesses grow. Life sciences deserve the same approach.

If there’s one issue that keeps coming up in conversations I have with businesses, it’s the skills gap. The Chancellor talks about attracting the world’s best minds to the UK, and I couldn’t agree more. But let’s be honest: we’re not making it easy.

High visa costs and slow processing times are putting up barriers where we should be rolling out the red carpet. A recent analysis by the Royal Society showed that UK visa fees are up to 17 times higher than in competitor countries like the US, Canada and Australia. It’s baffling. Why would top talent choose the UK when it’s easier, and cheaper, to go somewhere else?

And it’s not just about international talent. We’ve got to do more to nurture homegrown skills. In one of our recent reports, we highlighted how sectors like industrial automation are struggling to fill specialist roles. The life sciences sector is facing the same issue. Companies are crying out for people with expertise in everything from biotech manufacturing to data science.

If we want the UK to be a magnet for life sciences innovation, we need to invest in people as much as we invest in infrastructure.

I’ve been around long enough to know how this plays out. Companies delay projects.  They miss growth opportunities. Or worse, they move operations to countries where they can find the talent they need. If we’re serious about being a global leader in life sciences, we need a proper plan. That means investing in STEM education, creating more apprenticeships and building stronger links between industry and academia.

The government has made some promising noises. The £520 million investment in life sciences manufacturing is a start, and the £4.5 billion Advanced Manufacturing Plan sounds good on paper. But here’s the thing: funding alone isn’t a strategy.

We need a plan that connects the dots between research, development and manufacturing. That means:

• Investing in regional infrastructure. Growth isn’t limited to the South East. There’s incredible talent and potential across the UK that’s being wasted because the investment isn’t there
• Incentivising companies to stay and grow. Tax breaks, grants and streamlined regulations can make the UK more attractive for life sciences manufacturing. Right now, we’re not competitive enough
• Fixing the talent pipeline. Immigration reform is part of the puzzle, but so is making sure we’re training the next generation of scientists, engineers and technicians right here at home.

The government’s ambition is clear, and that’s great. But ambition without action doesn’t build factories, create jobs, or develop new medicines. Some of the recent announcements, like transport improvements in the Oxford-Cambridge corridor, are steps in the right direction. But they’re not enough.

Without a serious plan for scaling up manufacturing, supporting UK firms and spreading investment beyond the Golden Triangle, we’re going to stay stuck right where we are: brilliant at research, but failing to turn our ideas into impact.

We know what needs to be done. The question is when will we start?