(Reuters) – AstraZeneca has warned it would possibly move its vaccine production from the United Kingdom to the United States amid a standoff with the new Labour government over plans to cut state aid, the Financial Times reported on Thursday.
UK Finance Minister Rachel Reeves needs to cut state investment for the vaccination centre, which would mean the previous administration’s commitment of between £90m and £40m, according to the Array report citing sources.
The previous bid included up to $70 million in grants to expand a facility in Speke, Liverpool and £20 million in studies and progression from the UK Health Security Agency, the report said.
Manufacturing could simply take place in India, where the company has produced vaccines in the past, other people briefed on the discussions told the newspaper.
AstraZeneca and the British Treasury did not respond to Reuters’ requests for comment.
Sunak’s management had planned in March to invest £650 million in the Anglo-Swedish pharmaceutical manufacturer to boost vaccine research, progression and manufacturing.
(Reporting via Urvi Dugar in Bengaluru; editing via Arun Koyyur)
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