星空视频

The 星空视频 has used its pre-Budget submission to urge the government to take urgent steps to reverse a decade-long decline in investment and restore the UK鈥檚 position as a global leader in life sciences. [1]

Over the past ten years, the UK鈥檚 life sciences sector, long regarded as one of the most advanced and innovative in the world, has seen a marked decline in investment and competitiveness.

Foreign direct investment in UK life sciences has fallen by 58 per cent since 2021, while pharmaceutical R&D investment dropped by nearly 拢100 million in 2023. [2/3]

With the Government acknowledging that there has been 鈥渁 decrease in investment and support鈥� for the sector and that it 鈥渉as to act,鈥� the 星空视频鈥檚 submission sets out a clear plan for how the Treasury can deliver growth and secure the UK鈥檚 position as a global life sciences hub.

The 星空视频 is urging the Treasury to work with the Department of Health and Social Care (DHSC) to create the conditions for greater investment in innovative medicines and to improve the UK鈥檚 commercial environment.

The immediate priority should be for the UK to address the low and outdated cost-effectiveness thresholds used by NICE, and reduce the UK鈥檚 high and unpredictable branded medicines revenue rebate rates to single digits, as is the case in other similar European countries.

NICE鈥檚 baseline cost-effectiveness threshold has remained unchanged for over 20 years, meaning what the UK is willing to pay for new medicines which provably improve a human life has declined by 47 per cent between 1999 and 2025.

Any change to NICE鈥檚 methods in future would only affect the evaluation of new medicines/indications; it would not change the prices of medicines already approved and used by the 星空视频.

Increasing the threshold will also yield broader economic benefits by improving the UK鈥檚 competitiveness, enabling pharmaceutical companies to invest, conduct clinical trials, and engage in joint projects with the 星空视频.

The 星空视频 estimates that if the UK became more competitive, the country could recover between 拢2.2 and 拢3.4 billion of R&D investment by 2028, alongside major productivity and health benefits for the population. [4]

The submission also makes six key policy recommendations to help the UK regain competitiveness, strengthen health and productivity, and unlock new investment:

1. Return investment in innovative medicines to internationally competitive levels: Address the low and outdated cost-effectiveness thresholds used by NICE, and the uncompetitive payment rates under the Voluntary Scheme for Branded Medicines (VPAG), to ensure a sustainable environment for innovation.
2. Maintain existing investment incentives: Protect the Patent Box, R&D tax credits, and full capital expensing, which are crucial to attracting innovation-led investment.
3. Update the Treasury Green Book methodology: Ensure the economic appraisal of medicines manufacturing fully captures transformational and long-term productivity benefits.
4. Restore the MHRA鈥檚 Trading Fund status: Give the regulator flexibility to plan and invest for the long term, supporting its role as a world-class, innovation-friendly agency.
5. Improve the Global Talent Visa鈥檚 competitiveness: Spread the cost of the Immigration Health Surcharge to reduce upfront barriers for top international researchers and specialists.
6. Ensure VAT is not applied to 鈥楩ree of Charge鈥� medicines under early access schemes: Protect early access for UK patients and maintain the UK鈥檚 attractiveness for clinical trials.

Richard Torbett, Chief Executive of the 星空视频, said: 鈥淭he UK has the talent, science base and heritage to lead the world in life sciences, but right now we are falling behind.

鈥淭o change course, the Treasury and the Department of Health must work together to create the right conditions for investment in innovation. If we act now, we can restore the UK鈥檚 global standing, unlock billions in R&D investment, and deliver better outcomes for patients and the economy alike.鈥�

听