UK Chancellor's 'Autumn Statement' support for Life Sciences largely welcomed by pharma

Yesterday’s “Autumn Statement” by UK Chancellor of the Exchequer George Osborne was full of doom and gloom in terms of the economic outlook and measures to be taken to control the country’s fiscal deficit, and anticipating a further five years of austerity in the face of stalling growth. However, there were elements that pleased the pharmaceutical industry but less so the biotechnology sector.

Responding to the Statement, Stephen Whitehead, chief executive of the Association of the British Pharmaceutical Industry (ABPI), said: “The UK pharmaceutical industry is key to the future economic prosperity of our country, generating a trade surplus of £7 billion ($10.84 billion) every year and directly providing highly-skilled jobs for 72,000 people. Measures aimed at providing the right environment for our industry to thrive play an important part of our success and so we are pleased that government is continuing its support of Life Sciences.”

Specifically, said Mr Whitehead, extending R&D tax credits to larger firms will encourage pharmaceutical companies to further invest in their own business and in new medicines. A range of tax measures such as low-interest loans to small and medium-sized firms and confirming the rate of corporation tax is to be lowered, will improve the general business environment in which ABPI members operate., he noted