Pharma/life science survey response deals blow to Sunak’s overtures
11 Mar 2024
Prime minister Rishi Sunak’s efforts to put life science investment at the heart of the UK’s economic recovery have been dealt a blow in a new survey that suggests respondents would have more faith in a Labour government.
Funding consultants Ayming’s latest annual Innovation Barometer report surveyed more than 600 businesses including more than 100 from the pharmaceutical and life sciences sector.
It suggests that nearly eight in 10 (79%) think a Labour government would have a positive impact on innovation, with only 6% predicting a negative outcome.
Equally worrying for the Government’s strategic plans to focus on research and development is that an even greater percentage of companies will be offshoring at least a proportion of their R&D. This compares with just 44% committed to carrying out projects within the UK. A key factor for pharmaceutical companies was the perception that offshoring offered better intellectual property (IP) protections.
However, driving innovation appears to be less of a priority in pharma and life sciences than for other sectors. On average across all industrial sectors polled innovation ranks as the second biggest priority – in pharma and life sciences it languishes in fifth place.
The survey also suggests Government initiatives on tax reform have yet to impact the sector favourably.
Nearly half those polled from the sector (43%) were aware of imminent changes to the UK’s R&D tax credit scheme. Adapting to these changes could cause difficulties in dealings with HMRC, suggests the report.
In all, 23% of pharma and life science respondents said they have had payments from HMRC delayed. One in five respondents from the sector say recent experiences with HMRC had put them off from applying.
Senior manager at Ayming UK, Naomi Ikeda, stated: “Pharmaceuticals and life sciences are very R&D intensive. As a result, they have been especially affected by instability of the UK’s R&D infrastructure.”
She cited the temporary exclusion excluded from the European Horizon programme that she said had “lost firms access to funding and the opportunity to collaborate on cutting edge research”.
Ikeda added: “At the same time, the sector is especially dependent on skilled talent and there’s a general recognition that we need to do more to develop homegrown STEM. Our education system needs to be a priority, especially universities.”
NEWS: Chancellor Jeremy Hunt’s recent Budget failed to boost long-term economic growth warned National Centre for Universities and Business (NCUB) chief executive Dr Joe Marshall.
He stated: “There were no bold, new announcements to truly shift the dial and drive growth through a more innovative, highly skilled economy. Last week revealed that business research and development (R&D) investment in the UK dropped by 0.4% in real terms between 2021 and 2022. It is therefore clear that existing measures alone do not go far enough.”
“To unlock economic growth, it is vital that the Government sets an ambitious target and plan to raise private R&D investment.”
Photo: Chokniti Khongchum
