CEO Update - 21 October 2024
Two new reports you need to read
This week, we’ve published two important reports that shed light on key areas shaping our industry. The first, UK biotech financing (July - September 2024), provides an in-depth analysis of sector financing, highlighting the flow of investment into UK biotech. The second, TechBio: UK leads innovation frontier, focuses on the emerging TechBio sector and the innovations that are defining its rapid growth. I encourage you to take some time to read through these reports—they’re crucial for understanding the landscape we’re navigating.
Steve Bates OBE
CEO, BIA
A defining moment for our sector
Looking ahead, we are entering what could be a defining couple of weeks for the future of life sciences. With the government’s Budget announcement approaching, we are focused on ensuring life sciences innovation is prioritised. The next steps we take as a sector, especially around tax reliefs, government funding, and our role in the industrial strategy, will be pivotal to shaping our long-term future.
R&D tax credits secured: a collective win for life sciences
It was a welcome surprise when Chancellor Rachel Reeves used her speech at the International Investment Summit to confirm that the government will "maintain the rates of relief for R&D, which provide generous support for innovation." This success is a direct result of BIA’s long-standing campaign, supported by our members every step of the way.
Before the general election, we secured Labour's commitment to maintaining the reliefs, and post-election, we provided detailed proposals on how to better target them toward life sciences. Our efforts included demonstrating that our sector wasn’t among those misusing the scheme through fraud. This outcome builds on our years of close collaboration with the Treasury, and it is truly a collective achievement. Thank you to all our members for supporting this vital work.
Looking ahead: the upcoming budget
With the Budget now just over a week away, the media is buzzing with talk of a tough financial outlook, with the government having to make hard choices on tax and spending. While securing R&D tax credits was a critical win, we’re now turning our focus to ensuring that life sciences innovation remains a central priority in the new National Wealth Fund and the British Growth Partnership via the British Business Bank. Additionally, we are calling for the implementation of the life sciences manufacturing fund to ensure that the downstream economic benefits of our sector are fully realised.
In this intense lobbying environment, we’ve concentrated our efforts where we have the strongest insight. We’re particularly focused on the business tax environment and any shifts in government spending, especially around UKRI and Innovate UK, areas where we align with broader science and industry groups.
I’ll be taking this message to the UK Government Life Science Council this week. Stay tuned for our post-Budget webinar, where we’ll break down the details and answer your questions.
COP16 in Cali: what it means for UK biotech
I am closely watching the developments at COP 16 in Columbia because the meeting discusses setting up a global system to impose a levy on users of digital sequence information. We have already discussed this with the UK government delegation going to Columbia (from DEFRA) and stressed the need for the UK’s position to have coherence with the industrial strategy and growth ambitions announced last week. It is crucial that the UK deep biotech companies developing Net Zero solutions using biotechnology are not put at a competitive disadvantage with those operating in other jurisdictions.
Any rules or levies that come from this summit will be imposing rules which the USA doesn’t have to comply with (as it is not a signatory) and for which China is considered a developing country. Ruth Davies has been appointed the UK government’s first Special Representative for Nature, we will reach out to her so she is able to gain insight into what BIA companies do. Again thanks to members for deep insight and expertise on this subject – one to watch in the coming weeks, we’ll see the outcome early in November.
UK health data: our global asset
The celebration of Our Future Health’s 1 millionth volunteer is a testament to the incredible opportunity the UK offers for life sciences. With over a million people consenting to participate in the world’s largest health research programme, we are seeing first-hand the potential of UK health data. However, as we learned from the UK Biobank discussions this week, the management of NHS-collected patient data will always spark public debate.
I firmly believe UK start-ups are the best partners for health data repositories for two key reasons. First, the economic benefits of using UK data should flow back into the UK economy. Second, UK-based SMEs comply with domestic regulations and are attuned to our society’s values. As this area progresses far beyond the world of academic research, it is vital that UK health data players understand the implications and impact of business models and values.
The road ahead: aligning the industrial strategy with the NHS 10-year plan
As the new government outlines its long-term plan, I can see with clarity the pivotal role life sciences will play in the UK’s future. With the NHS 10-Year Plan consultation opening today, and as a core sector in the industrial strategy, we have an incredible opportunity to shape our country's success.
I look forward to discussing at this week’s Life Science Council how we can develop a refreshed life sciences strategy with our partners. BIA’s “Vision for our sector 2035” will serve as a solid foundation for these conversations, and thanks to our members, we are well ahead of the curve. More on this in the coming weeks.
APPG launch
I’m incredibly excited to see the launch of the All-Party Parliamentary Group (APPG) for Life Sciences, a pivotal step forward for our sector. The formation of this group illustrates the increasing importance of life sciences as a key driver of innovation and economic growth. For the first time, parliamentarians will have direct access to the entirety of the UK’s life sciences ecosystem, enabling informed discussions on how we can accelerate growth and bring transformative benefits to NHS patients and the wider economy. This is a clear signal that life sciences are becoming ever more integral to the future of the UK.
DEI workshop
Be sure to attend our Future Black Leaders in UK Biotech workshop on Wednesday. The event will be building on last year’s groundbreaking sector report on diversity, equity, and inclusion (DEI) in UK biotech which highlighted that while the industry reflects the diversity of the broader UK population, Black employees remain under-represented, particularly in senior leadership roles. Don’t miss the chance to hear from an expert panel of sector leaders and rising talent as they share their experiences and take part in an interactive workshop focused on how we can work together as a sector to drive real change.
Regulation conference
Mark your calendar for 6 November for the Future of UK Life Sciences Regulation conference, a must-attend event for those shaping the future of our sector. This year’s gathering will focus on the evolving regulatory and access landscape, with discussions around the UK’s position as a global destination for clinical trials, accelerated regulatory pathways, and the role of data and digital technologies in advancing real-world evidence. I look forward to seeing you there.
