BIA response to Budget 2026
Chris Molloy, CEO of the BioIndustry Association (BIA), said:
“This is a Budget that has much to welcome for the life sciences with fresh and faster injections of capital, lower energy costs, protection of the patent box and a focus on founders. But BIA will now be engaging in the consultation for the Finance Bill as we head towards the Spending Review in 2027.
“These policies reflect some of what we have proposed and are the kind of cost-efficient solutions that will enable the UK to capture the full benefits of its life sciences and biotech sector.”
Increased British Business Bank budget
"We are pleased to see the Chancellor fuel the life sciences innovation engine through an increased and front-loaded budget for British Business Bank (BBB) that will back funders and companies across biotech and dual-use technologies.”
Pension fund capital
“We welcome his commitment to accelerating the life sciences engine through the flow of pension fund capital into high-growth, capital-intensive businesses. It’s vital Government doubles down on the Mansion House Accord.”
Founders’ Relief
“Any national biotech flywheel needs founders to be rewarded and incentivised to plough back their profits. Although there is broad merit in the Founders’ Relief, the initial inclusion criteria are more relevant to high street businesses, not high-tech, VC-backed biotechs. We shall be working with members and Treasury during the next month’s consultation period to ensure the needs of biotech founders are well understood.”
Spending Review
"With a Spending Review now confirmed for 2027, our focus moves to protecting the sector, particularly at the early stages. We recognise Treasury funds are limited, which makes harnessing our nation’s private wealth to drive growth and health improvements even more critical. The UK must not risk losing the pipeline of biotech entrepreneurs and start-ups that our world-class ecosystem produces by further cutting UKRI support for early-stage life sciences and engineering biology companies whilst also not delivering at speed the necessary pension reforms to compensate for the lack of public funds.
“Focussed pressure is needed to ensure the NHS supports innovation through adoption, particularly through innovative medicines procurement. We must meet our global commitments laid out in the US-UK Pharmaceutical Agreement. Any breaking of commitments made to national funding support of the sector and adoption of its medicines not only risks patients health but encourages the golden goose that is our life sciences sector to fly abroad.”