The UK is running the risk of becoming a pariah for investors into research and development (R&D) projects, creating the threat that it will lead to an exodus of skills.

The National Centre for Universities and Business (NCUB) has waned that the UK’s attractiveness as a destination for life sciences and R&D investment is under threat. AstraZeneca’s decision to pause its £200 million Cambridge expansion, alongside Merck’s withdrawal from a planned £1 billion London discovery centre, highlights mounting risks to Britain’s competitiveness in a sector that should be central to economic growth.

Rosalind Gill, Director of Policy, Analysis and External Affairs at NCUB, said: “AstraZeneca’s pause in Cambridge, following the cancellation of its £450 million vaccine investment, sends another warning signal about the UK’s ability to compete for global life sciences investment. With Merck also abandoning its £1 billion discovery centre, Britain risks losing ground in a sector where it should be leading.

“The UK has world-class science, but too often that strength does not translate into business confidence and investment. Business R&D spend fell to £50 billion in 2023 – 6% lower in real terms than in 2021 – while other countries forge ahead.

“There are bright spots: BioNTech has pledged up to £1bn over ten years to expand UK research; Unilever is investing £80 million in fragrance R&D at Port Sunlight; and Vishay plans £250 million for semiconductors in Newport. But the overall trend and latest data is concerning.”

In response the NCUB believes there needs to be swift and tangible action, not simply peromises by the UK Government to reverse the slide and ensure the country remains an attractive home for R&D investments and skills.

Gill added: “To turn the tide, businesses consistently tell us they need clearer national priorities, simpler access to support, and reformed public bodies that focus more directly on industry needs. Without this, the UK risks seeing opportunity and investment move elsewhere.

“The Government’s Industrial Strategy is a critical first step – but it must be more than words on paper. Without a clear delivery plan and decisive action, investment and jobs will continue to move overseas. Businesses want to invest in the UK, but confidence is being eroded by fragmented support, policy uncertainty, and a failure to fully back the people, places and regulatory systems that drive innovation.”