Chancellor welcomes 拢50m boost for medicines manufacturing
A multi-million-pound investment to build a new facility that manufactures lifesaving medicines for the NHS has been confirmed by the Chancellor today.
- 拢50 million investment secured to continue producing and supplying lifesaving medicines to the NHS
- Investment is a boost for manufacturing in Newcastle and supports UK supply chain
- Follows 拢100bn investment in capital spending announced at Budget to attract private investment and rebuild Britain鈥檚 infrastructure
On a visit to the Newcastle, Rachel Reeves will welcome the 拢50 million deal with Accord 鈥� one of the largest suppliers of chemotherapy products in鈥疎urope鈥�- to build a state-of-the-art medicines manufacturing facility that incorporates the latest automation technology. The investment will create over 50 skilled jobs and safeguard the site鈥檚 long-term future.
Investment will be a vital part of addressing the growth challenge and Accord鈥檚 commitment to the UK is just the kind of partnership investment that will grow our economy, and shows that Britain is open for business.
Backed by government investment, the deal will enable Accord to continue producing and supplying lifesaving medicines for oncology and autoimmune diseases treatments to the NHS alongside health systems and patients across Europe.
The investment will also support efforts to shore up the UK鈥檚 supply chain of critical medicines and boost UK health resilience, with the site鈥檚 capabilities also expected to be highly valuable in the event of a future pandemic.
The Chancellor welcomed the investment just two days after delivering a Budget to fix the foundations to deliver on the promise of change after a decade and a half of stagnation. 聽
The Budget will help rebuild Britain with over 拢100 billion capital investment over the next five years聽to attract private investment in key industries of the future.
As a central part of the Growth Mission, the Budget confirmed the Industrial Strategy will deliver the certainty and stability businesses need to invest in the UK鈥檚 growing and high potential sectors.
This includes up to 拢520m for a new Life Sciences Innovative Manufacturing Fund to drive growth and build resilience for future health emergencies. The new Fund is expected to leverage 拢3.7 billion investment, creating and safeguarding 13,599 high skilled jobs as well as 拢1.7 billion of R&D spillover benefits.
Visiting Accord Healthcare today, Chancellor of the Exchequer Rachel Reeves said:
鈥淣o one should be in any doubt that it is my number one mission to grow our economy.
鈥淭he 拢100bn capital investment in my Budget this week helps us achieve that by attracting private investment. It鈥檚 that partnership model that will grow our economy and restore stability, whilst delivering better jobs and driving prosperity across all corners of the country.鈥�
Science and Technology Secretary Peter Kyle said:
鈥淢edicines manufacturing is a UK success story. Partnerships between government and industry are crucial in taking groundbreaking new treatments from research labs to treating patients.
鈥淚nvestments like this will help secure the manufacture of next generation life-saving medicines and support our resilience to future pandemics.
鈥淭his joint public-private investment in Accord Healthcare鈥檚 site will retain and create highly skilled jobs in Newcastle, ensuring we reap the benefits of the talent in every corner of our country while growing our local and national economies.鈥�
Welcoming the announcement Paul Tredwell Executive Vice President of Accord Healthcare, EMENA said:
鈥淎ccord is delighted to have worked with the government to unlock this 拢50 million investment to continue supplying affordable, high-quality medicines to the NHS. Today鈥檚 announcement is positive news for the medicines manufacturing industry across the UK and signals that government is squarely behind this business sector.
鈥淔or us at Accord, it has meant that we have been able to confidently invest in our production facility in Fawdon, Newcastle upon Tyne where we have been able to significantly increase production of a range of innovative, lifesaving medicines for patients across the UK and Europe. This Government investment has allowed us invest further in our people allowing us to grow our presence in the UK, whilst simultaneously playing a significant part in reducing medicine shortages in the UK and shoring-up our ability to respond well in future public health emergencies.鈥�
Today鈥檚 news follows 拢63 billion of private investment committed around the government鈥檚 International Investment Summit earlier this month, which saw 38,000 jobs committed to the UK in infrastructure, renewables and life sciences sectors, turbocharging growth and innovation across the country.
This also builds on the life sciences announcements secured including Eli Lilly and Company聽which is collaborating with government through a memorandum of understanding which will see the pharmaceutical giant intending to commit聽拢279 million聽to tackle significant health challenges 鈥� including obesity.聽
The Life sciences sector employs 304,000 people across nearly 7,000 companies, 80 per cent of which are SMEs with the sector seeing over 拢108.1 billion turnover in 2021/22.
This week鈥檚 Budget confirmed an additional 拢22.6 billion for day-to-day spending over two years for the Department of Health and Social care, supporting the NHS to deliver an extra 40,000 elective appointments per week, delivering on one of the Government鈥檚 first aims in office to reduce waiting times in the NHS.