June proved to be a significant month for policy as the UK Government released three major policy documents: the Comprehensive Spending Review, the 10 Year Infrastructure Plan, and an Industrial Strategy.
The Chancellor of the Exchequer, Rachel Reeves, emphasised the importance of infrastructure, when fronting the 10 Year Infrastructure Plan announcement, stating, “Infrastructure is crucial to unlocking growth across the country, but for too long investment has been squeezed“. She added that these initiatives will “enhance public services, improve lives and create the conditions for sustainable economic growth in communities throughout the UK,” ultimately delivering “the decade of national renewal we promised Britain and fulfil our Plan for Change goals to kickstart economic growth, and build an NHS fit for the future“.
For the UK Innovation Corridor, the blizzard of policy announcements contained several key points of interest. The government has reaffirmed its commitment to invest in East West Rail and will provide increased funding for research and development (R&D) and the Life Sciences sector. Artificial Intelligence (AI) also featured prominently, with plans for new AI Growth Zones, expanded investment in domestic supercomputing capacity, and the establishment of a new sovereign AI unit to maintain the UK’s leadership in the field.
Specifically, the Industrial Strategy includes the ambitious goal of making the UK the “leading Life Sciences economy in Europe by 2030 and third globally by 2035“. This will be achieved, the plan says, by streamlining regulation, implementing low-friction procurement, and supporting high-potential UK companies to grow, invest, and remain in the UK. Ensuring the UK continues to be one of the world leaders in Life Sciences is an aspiration long been championed by the UK Innovation Corridor.
The three policy announcements did not resolve the issue of the UK Health Security Agency’s proposed move to Harlow, which has long been mooted by Government. Ministers have confirmed the decision still sits the with the Department for Health and Social Care and UKIC will continue to make the case the move, which will have innumerable multiplier effects given Harlow’s existing role in the Life Sciences sector and its strategic location between Cambridge and London.
As a Corridor, we will continue to closely monitor progress in Life Sciences, AI, advanced manufacturing, and infrastructure. With a GVA of more than £280bn and as home to some of the most innovative companies in the country, the Corridor is the closest thing the UK has to Silicon Valley, and it is poised to play a crucial role in ensuring these policy pronouncements translate into tangible outcomes.
Jackie Sadek, UK Innovation Corridor Chair, said: “The UK Innovation Corridor welcomes much of what was announced by the government in June and particularly measures to drive investment into Life Sciences, AI, and advanced manufacturing. There is so much potential in our Corridor which already delivers more than £280 billion GVA, and there is a lot in this set of announcements that will help us realise that potential.
Our ambition is for the Corridor to deliver £350 billion, and possibly more, by 2040 and that will only happen with continued investment. With overall government spending decisions now finalised, one investment decision that needs to be taken quickly is that to relocate the UKHSA to Harlow. A quick, positive decision on this, will generate the momentum government needs to meet its ambitious goal of making the UK Europe’s leading Life Sciences sector by 2030.”
