(Reuters) – AstraZeneca has warned it may move its vaccine production from the United Kingdom to the United States amid an impasse with the new Labour government over plans to cut state aid, the Financial Times reported on Thursday.
UK Chancellor of the Exchequer Rachel Reeves needs to cut state allocations for the vaccination centre, which would raise the previous administration’s commitment from around £90 million to £40 million, the report said, citing sources.
The previous bid included up to $70 million in grants to expand a facility in Speke, Liverpool and £20 million in studies and progression from the UK Health Security Agency, the report said.
Manufacturing could simply take place in India, where the company has produced vaccines in the past, other people briefed on the discussions told the newspaper.
AstraZeneca and the British Treasury did not respond to Reuters’ requests for comment.
Sunak’s management planned in March to invest £650 million in the Anglo-Swedish pharmaceutical manufacturer to boost vaccine research, development and manufacturing.
(Reporting by Urvi Dugar in Bangalore; Editing by Arun Koyyur)
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