AstraZeneca Halts $558 Million Investment in UK Vaccine Plant

AstraZeneca has decided not to proceed with a planned £450 million investment in their UK vaccine plant due to decreased government support. The decision comes amidst political efforts to boost economic growth in Britain, with talks on state aid having stalled.

AstraZeneca has announced it will halt a significant investment at its vaccine manufacturing plant in northern England due to reduced government backing. The decision not to proceed with the £450 million project was revealed on Friday, as the pharmaceutical giant cited a decrease in government support.

This development happens as Prime Minister Keir Starmer aims to attract more investments into the UK to fuel economic growth. An AstraZeneca spokesperson stated, "Following discussions with the current government, we are no longer pursuing our planned investment at Speke." Despite the setback, the plant will continue the production of flu vaccines.

The UK Treasury has yet to comment on AstraZeneca's move to halt the investment. Reports suggest financial disagreements between the company and Labour government have led to the stalled negotiations. The Financial Times previously reported AstraZeneca's considerations of moving the plant to the U.S., where state aid talks had hit an impasse.

(With inputs from agencies.)