UK Government Pledges to End Standoff with Pharma Industry and Boost NHS Investment in Medicines
The UK government has pledged urgent action to repair strained relations with the pharmaceutical industry and reverse a decade of declining NHS spending on medicines. Speaking to the Commons science committee, Science Minister Lord Patrick Vallance emphasised the need for stronger collaboration to protect jobs, encourage innovation, and ensure patients across the UK gain faster access to life-changing treatments.
Lord Vallance, a former executive at GSK and the government’s former Chief Scientific Adviser during the Covid-19 pandemic, described the current situation as a “pivotal moment” for the NHS and life sciences sector. “We are determined to solve this,” he said. “We must not allow a continued decline in medicines investment. Now is the time to act and get this right.”
Pharma pull-outs spark alarm
The minister’s comments followed a series of high-profile investment withdrawals by global pharmaceutical companies. US giant Merck (known as MSD in Europe) recently abandoned plans for a £1bn London research hub, resulting in 125 job losses, citing a lack of UK progress in supporting the life sciences industry.
AstraZeneca, another key player, has paused a £200m laboratory project in Cambridge and previously scrapped a £450m vaccine site in Speke after months of negotiations. Industry leaders warn that unless the UK addresses its commercial environment and pricing models, further investment could shift abroad to countries such as the US, Ireland, Belgium, and Germany.
NHS medicines investment in decline
Lord Vallance highlighted that NHS spending on medicines has been shrinking as a proportion of overall healthcare funding since 2015, falling to around 9%. He stressed that this trend must be reversed—not just to address pricing, but to ensure equitable patient access and rapid uptake of cutting-edge therapies across the UK.
He urged closer coordination between the Medicines and Healthcare products Regulatory Agency (MHRA) and the National Institute for Health and Care Excellence (NICE) to streamline access to innovative treatments.
Dr Zubir Ahmed, the newly appointed Health Under-Secretary and a practicing surgeon, added that the UK must rethink its drug pricing frameworks. “We have to recognise the value of advanced therapies by assessing both economic and clinical benefits,” he said.
Industry voices call for urgent change
Pharma leaders echoed Vallance’s concerns. MSD’s UK head, Ben Lucas, described its withdrawal from the Francis Crick Institute partnership as a “sad day,” while AstraZeneca’s UK president, Tom Keith-Roach, acknowledged “a very substantial challenge” but confirmed constructive talks with the government.
The Association of the British Pharmaceutical Industry’s chief executive, Richard Torbett, warned that the UK risks losing out to international competitors unless conditions improve quickly.
Commitment to UK science remains strong
Despite recent setbacks, GSK reaffirmed its long-term UK presence, investing more than £1.5bn annually in R&D while announcing a $30bn programme in the US, including an AI-driven biologics facility.
Commenting on GSK’s transatlantic commitment, Prime Minister Keir Starmer said: “This is a powerful example of UK-US collaboration driving real-world impact—improving health outcomes, creating opportunity, and boosting growth.”
Lord Vallance concluded with a clear message: “We cannot afford to lose this industry. It is vital to the NHS, to our economy, and to patients who depend on new medicines. The UK must remain a global leader in life sciences.”
