Life Sciences Innovative Manufacturing Fund

If everyone is in their places, in particular Mr Anderson, who seems to have sat on every Bench in the Chamber this afternoon—

Not the Opposition Benches.

Well, quite. In that case, I call the Minister to move the motion. Is this your first time at the Dispatch Box, Minister?

Not quite.

Well, congratulations and welcome.

I beg to move,

That this House authorises the Secretary of State to undertake payments, by way of financial assistance under section 8 of the Industrial Development Act 1982, in excess of £30 million to any successful applicant to the Life Sciences Innovative Manufacturing Fund, launched on 30 October 2024, up to a cumulative total of £520 million.

Thank you for calling me on this none the less memorable occasion, Madam Deputy Speaker; it is the first occasion on which I seek the Chamber’s authority.

The life sciences sector is a jewel in the crown of our economy—a national asset that plays a unique role in both the health and the wealth of the United Kingdom. The sector drives jobs, investment and innovation right across the country, from cutting-edge research laboratories in Cheshire to—close to my heart—advanced manufacturing sites in south Wales. Life sciences manufacturing is the critical link between our world-class research and real-world patient benefit. It ensures that scientific breakthroughs translate into tangible improvements in care, while underpinning economic growth and strengthening the resilience of our NHS.

Yet despite the UK’s global leadership in many areas of life sciences manufacturing, we must acknowledge that, in recent years, growth in manufacturing sites and jobs has not kept pace with the expansion of the life sciences sector as a whole. That is why this summer the Government published the life sciences sector plan—a comprehensive strategy to ensure growth in all parts of the sector. The plan sets out the UK’s ambition to secure more life sciences foreign direct investment than any other European economy by 2030, behind only the US and China globally by 2035.

Central to that ambition is boosting manufacturing through delivery of the life sciences innovative manufacturing fund, one of six headline commitments in the sector plan. Launched last October, the fund demonstrates this Government’s commitment to the continued growth of our life sciences sector, with up to £520 million of funding available to support private sector capital investments until 2030.

Northern Ireland has a vibrant life sciences manufacturing sector. I am looking to the Minister for an assurance relating to article 10 of the Windsor framework, which subjects Northern Ireland to EU state aid rules. Can the Minister assure us that there is no impediment arising therein that would impede successful applications to the fund from Northern Ireland manufacturers? That could also have a knock-on effect on GB, because if the goods produced are transported to Northern Ireland, they, too, come under the state aid rules. Has the Department examined that? What assurance can the Government give us on the protection against EU state aid rules for the fund?

The talent and ability of people in Northern Ireland are very much at the forefront of our minds, and we want to ensure that everything we are doing to support the life sciences sector is taking a whole-UK approach. I am very happy to write to the hon. and learned Member on his questions about Northern Irish eligibility.

Will the Minister give way?

I will make some progress for now.

The life sciences innovative manufacturing fund directly supports two of the Government’s key missions: to kick-start economic growth and to build an NHS fit for the future. The scheme is projected to attract nearly £4 billion in private investment, creating more than 7,000 jobs and safeguarding more than 5,000 existing ones.

However, the scheme’s impact is not just economic. The pandemic proved that we cannot take our critical supply chains for granted, and supporting the onshoring of life sciences manufacturing through the fund is therefore critical to strengthening our national resilience and preparedness for future health emergencies.

Will the Minister give way?

I will make some progress.

This week we announced the first two grant awards through the scheme, marking a major milestone in the fund’s roll-out. This will unlock substantial private investment, showcasing the UK’s appeal to valuable, globally mobile life sciences manufacturers. As delivery of the scheme progresses, we expect to announce more grant winners in the coming months. Each project supported through the grant will further strengthen health resilience and drive economic growth across all nations and regions in the UK.

Since the Minister has been talking about taxpayers’ money, I would be grateful if he could let us know what the minimum leverage is. For every pound of taxpayers’ money put in, what is the minimum that has to be put in by the private sector?

My understanding is that these are grant capital investments that the Government will be making, and I am sure we will be looking at the leverage at a whole-fund level. If there are particular requirements at an individual investment level, I am happy to write to the hon. Member on that particular point.

Will the Minister give way?

I feel that, out of parity, I must give way to the hon. Member too.

Third time lucky. I welcome the Minister’s announcement of the fund for life sciences with regard to the companies we have in North Antrim and South Antrim. Could the Minister also ensure that any research and development tax credits that companies can apply for are fully supported, utilised and brought forward at speed so that companies are able to utilise not just the fund but the tax credits that come through R&D as well?