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Home Industry News AstraZeneca Shifts Investment to Ireland Following Frustrating Corporate Tax Increase

AstraZeneca Shifts Investment to Ireland Following Frustrating Corporate Tax Increase

20th February 2023

AstraZeneca’s CEO, Sir Pascal Soriot, has provided a specific illustration of how and why the UK is starting to lose interest as a location for investment.

AstraZeneca had planned to construct a manufacturing facility costing $360 million in the northwest of England close to its Warrington and Speke sites. However, Soriot said that Ireland was the ultimate choice because of the UK’s rise in corporate tax rate from 19% to 25%.

The voluntary medicine price scheme, VPAS, limits the growth in NHS expenditure for certain therapies to just 2% each year, sitting last year at 26.5%. This has not pleased those within the pharmaceutical sector.

Soriot’s pharmaceutical company spearheaded the UK’s fight against the pandemic with their Covid 19 vaccine, manufactured and produced by AstraZeneca as ‘profit-free’. So, it is hard to blame him for feeling resentful about footing an unanticipated Covid related expense despite their inbound revenues of $44.4 billion.

The NHS, which has been overburdened for years, isn’t up to its previous standard of excellence in conducting clinical studies.

Even while UK research is regarded as of a high calibre, many corporations discount Britain when selecting where to make investments.

Soriot said that while “it’s all very nice to discover something in the lab, at some point you need other types of people to progress the project.”

In a similar vein, Dame Emma Walmsley, Soriot’s GSK equivalent, cautioned we are reaching “a tipping point” for the UK life science sector.

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