In the first Labour Budget for 14 years, the Chancellor of the Exchequer Rachel Reeves delivered good news for UK based life science research, announcing £20.4 billion investment into research and development.

This will fully fund the UK’s association with Horizon Europe (the world’s largest collaboration scheme) and increase core funding by £6.1 billion to bolster the UK’s research base. This investment also includes a £520 million allocation for the Life Sciences Innovative Manufacturing Fund (LSIMF). The LSIMF will be UK and sector wide and will provide capital grants for investments in the manufacture of human medicines, medical diagnostics and MedTech products.

The Government is also investing £40 million over 5 years as a Proof of Concept Fund to turn pioneering university research into successful companies.

To be eligible for funding through the LSIMF, a project must:

  • Have a total cost (capital and non-capital costs) of at least £8 million
  • Be located in the UK
  • Be primarily a capital investment
  • Be a single company investment (as opposed to forming a partnership between companies or other types of organisations)
  • Require only the amount of grant requested to proceed (meaning without the specific amount of funding requested the project wouldn’t go ahead or would go ahead at a smaller scale, be carried out overseas or would be significantly delayed by 3 years or more)
  • Be a project for the manufacture of human medicines, medical diagnostics or MedTech products.

This investment reinforces the government’s desire for the UK to be a global innovation hub. It also increases health resistance by strengthening the UK’s manufacturing capacity and capability to withstand and recover from health emergencies such as pandemics, long-term healthcare challenges and system shocks such as supply chain disruption. Placing funding into life sciences research will help to reinforce the UK’s position as a centre of excellence.

Additionally, the LSIMF is expected to create and safeguard hundreds of high-skill jobs across the UK, contributing to regional economic development and supporting the government’s levelling-up agenda. The fund encourages innovation by attracting significant private investment, with the first tranche of grants already unlocking £260 million in private sector investment. By maintaining and enhancing the UK’s position as a global leader in life sciences, the LSIMF leverages the country’s strong research and development capabilities.

If you are a university academic looking to commercialise your idea, a small business or start-up owner looking to protect your innovation and need advice on how to protect your work and take it from bench to market, Avidity IP can help. Get in touch today to speak to our specialist team about your intellectual property needs.

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