BIA response to the Spending Review 2025
The BIA has submitted its representation to HM Treasury for the Spending Review 2025 - Phase 2.
In our submission, we reiterate the economic growth potential of UK life sciences, and welcome its recognition within the Industrial Strategy as a priority sector. We call for government to turn its attention to the six key areas outlined within the Industrial Strategy, and list a number of priority investments within them.
We say:
- Innovation
Sustained public and private investment in research and development (R&D) and adoption of innovation is critical to maintaining the UK’s leadership in life sciences. Strategic investment into high-growth technologies and subsectors is key to unlocking the economic growth of the sector, as well as ensuring that companies are able to scale and commercialise.
- Regulatory environment
Life sciences and biotech companies operate in highly regulated markets. Highly-innovative products developed and produced by the sector bring great benefits to society, create new industries, jobs and export-led growth, but they can only deliver these benefits if regulators are properly resourced, and supportive of innovation.
- People and skills
Over 50% of the life sciences workforce holds advanced technical qualifications, making funding for relevant qualifications, and industry and SME engagement, essential to meet workforce demands. An efficient and easy to navigate visa regime is also essential and we welcome the Chancellor’s recent remarks on enabling this for life sciences and AI.
- Crowding in investment
The UK lacks its own venture capital funds sufficient scale required to support the growth of innovative businesses, despite high levels of foreign investment. A focus is needed on increasing the number of domestic investors, particularly large institutions like pension funds, and it is crucial that the UK isn’t competed by international competitors willing to offer more incentives to crowd in globally-mobile investment.
- International partnerships and trade
R&D, business, and investment partnerships between trusted international partners are a regular occurrence and critical to the functioning of the UK life science sector. The expansion of our investor “concierge” service is needed to offer more holistic support for investors, and government-facilitated trade missions should continue to build and bolster international connections.
- Energy and infrastructure
Access to specialised infrastructure and manufacturing capacity is needed to enable the UK to scale-up and capture the economic benefits of advanced manufacturing medicines and bio-based innovations in growth industries being transformed by biotech. Investment into digital infrastructure can future-proof the sector, as well as investment into traditional infrastructure and transport to enable connections and growth.
