The UK's Life Sciences Sector Plan, published 12 months ago, has helped to attract more than £3 billion in public and private investment to the country, reflecting international confidence in the UK’s world-class science, innovation and health ecosystem, the government has said.
Major private investments, which the government describes as “creating hotbeds of innovation and revitalising regional economies up and down the country” include: £300 million backing from AstraZeneca to support its operations in its Cambridge headquarters and a facility in Macclesfield using AI to discover new drugs; Moderna opening its new innovation centre in Harwell with a £1 billion UK R&D investment commitment over the next 10 years; and UCB’s £500 million investment in a new world-class R&D hub in Windlesham, Surrey, developing a range of transformative medicines for immunological diseases.
The Life Sciences Sector Plan, which is part of the UK government’s wider Modern Industrial Strategy, published in July 2025, outlines targeted actions to support world-class research and development, attract investment, grow advanced manufacturing and accelerate health innovation. The plan aims to position the UK as the leading life science economy in Europe by 2035, behind only the US and China. “In its first year, our Life Sciences Sector Plan is delivering cutting-edge treatments to tackle cancer, new opportunities for British businesses to start up and grow, and well-paid jobs that improve lives for families. A thriving life sciences sector is good for NHS patients and good for economic growth across the UK,” said Liz Kendell, Science Innovation and Technology Secretary.
Pascal Soriot, CEO AstraZeneca said: “2026 has been an important year of tangible action advancing UK life sciences. The first ever increase of the NICE threshold since 1999, the establishment of the Health Data Research Service, and measures to speed up clinical trial delivery. We look forward to working with the government to further strengthen its global competitiveness and build on this momentum.”
Setting out the achievements in a report: Life Sciences Sector Plan Year One Update, the government said that progress has been made in four specific areas: investment in commercial research and development; access to scale-up capital; patient access; and foreign direct investment.
The report notes: “We are also deepening our partnerships with industry to accelerate and deliver tangible benefits for patients. This includes our collaboration with Lilly on the £85 million Obesity Pathway Innovation Programme, and the Respiratory Transformation Partnership with AstraZeneca, Chiesi, GSK and Sanofi, demonstrating how coordinated action across industry and the NHS can test new models of care, improve access to treatment and support better health outcomes.”
Considering the developments in the global context the report says: “We have done this in a challenging global environment. Competition for investment has intensified, and pressures across supply chains and trade continue to shape the operating environment for businesses. In this context, we have worked closely with industry to provide stability, back innovation and support growth, strengthening our international partnerships and supporting improved market access for UK life sciences exports.”
The government also highlighted the UK's relationship with the US, saying that the UK–US Pharmaceuticals Arrangement, published in April 2026, secured a commitment to no additional tariffs on pharmaceuticals or medtech exports under US Section 232 or Section 301 investigations for at least three years. “The UK is the first and only country to secure these commitments which provide certainty for UK exporters, reduce supply chain risk and strengthen the UK’s position as a globally competitive location for life sciences manufacturing and innovation,” the government said.
Professor Chris Molloy, CEO of the UK BioIndustry Association (BIA) said: “The US–UK pharmaceutical deal provides a framework for purposeful, evidence-based collaboration between industry and government to improve patient access to the latest innovative medicines. But in an increasingly competitive world, simply going faster than before is not enough. Pace is paramount and we need a fundamental change of gear to accelerate to the front of the pack — particularly in unlocking high-volume domestic finance, from company proof of concept through to scale-up, speeding up clinical trials and patients’ access to the latest medicines.”
Further reading:
- Life sciences: Why execs are cautiously optimistic about 2026
- Life sciences: US-UK pharma deal 'will drive investment'
- Life Sciences leadership: The UK and the EU set out plans for sector growth and investment
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