Proactive Investors - AstraZeneca PLC (LON:AZN) will have to scale back plans to expand its Merseyside vaccine manufacturing site after it was revealed the government is set to cut some of the project’s funding.
Of the £450 million forecast to be spent to facilitate the site development, the former Tory government had promised to contribute £65 million.
However, current Chancellor Rachel Reeves is believed to be considering reducing the government support by over £20 million, according to Financial Times reports.
It comes as part of Reeves’ wider review of previous government investments as she looks to address the £22 billion deficit in public finances.
This move could mean AstraZeneca (NASDAQ:AZN) relocates the project to France, the FT added.
Astra’s site in Merseyside is already partly in operation, with some 400 workers largely focused on childhood vaccinations.
Boss Pascal Soriot last month said the location was “absolutely ready to go” and hoped investment could be concluded promptly.
A Treasury spokesperson said: “We are committed to making the UK one of the best places in the world to develop and manufacture new and innovative medicines.
“The chancellor receives regular updates on this planned investment in Speke, and we are in positive discussions with AstraZeneca to support its delivery.”