AstraZeneca has paused a planned £200 million expansion at its Cambridge research hub, in another setback for Britain’s pharmaceutical industry. The project, announced with much fanfare last year, was expected to create around 1,000 jobs and strengthen the UK’s position as a global leader in life sciences.
A Sudden Halt
The expansion was due to build on AstraZeneca’s Discovery Centre, which already employs more than 2,300 scientists. On Friday, the company confirmed it had decided to pause the investment, saying:
“We constantly reassess the investment needs of our company and can confirm our expansion in Cambridge is paused.”
The decision means none of the £650m in projects promised under the previous government — including a £450m vaccine facility in Liverpool that was shelved in January — will now go ahead.
US Gains, UK Loses
The move comes amid growing concern that Britain is falling behind as a destination for pharmaceutical investment. Over the past decade, spending on medicines in the NHS has fallen from 15% of the health budget to just 9%, while most developed nations spend between 14% and 20%.
At the same time, the US is strengthening its appeal. In July, AstraZeneca pledged to invest $50bn (£36.9bn) in American manufacturing and research, following pressure from President Donald Trump on drugmakers to create more jobs in the US and threats of higher tariffs on imports.
The shift is not unique to AstraZeneca. Earlier this week, US rival Merck (known as MSD in Europe) scrapped plans to occupy a £1bn research centre in London’s King’s Cross. Construction had already begun, but the company said it would move operations to the US instead, cutting jobs in the UK.
Industry Alarm
Analysts say these decisions reflect deeper structural problems. Dr Helen Parker, a life sciences policy specialist, said:
“The UK has the scientific expertise and talent, but inconsistent support and falling investment in medicines are driving companies elsewhere. Unless the government offers stronger incentives, the US will continue to attract the big players.”
Both AstraZeneca and Merck have made clear that delays and reductions in government support influenced their decisions. AstraZeneca described talks over its Liverpool plant as “protracted” and pointed to a weaker financial package compared with earlier proposals.
Political Reaction
Successive governments have held up life sciences as one of the UK’s success stories. Former chancellor Jeremy Hunt described the sector as vital to “the country’s health, wealth and resilience.” Just days before AstraZeneca pulled the plug on its Liverpool plans, Chancellor Rachel Reeves called the company one of the UK’s “great companies.”
But the latest setback has fuelled criticism that Britain risks losing its edge. Cambridge, Oxford, and London have long been regarded as global hubs for research, yet without fresh investment, their future role may be under threat.
