Life Sciences Sector Plan to grow economy and transform NHS
The government has today (Wednesday 16 July) launched a bold new Life Sciences Sector Plan as part of the government’s flagship Industrial Strategy, setting out a ten-year mission to harness British science and innovation to deliver long-term economic growth and a stronger, prevention-focused NHS.
The UK is already a global leader in life sciences, with the sector worth around £100 billion to the economy, and employing around 300,000 people. This plan, developed in close coordination with the government’s 10 Year Health Plan, doubles down on that strength – turning cutting-edge research into real-world results: new treatments, faster diagnoses, and more lives saved. It’s about making sure breakthroughs happen here – and stay here – creating jobs, improving lives in every part of the country, and driving growth.
Life sciences’ critical importance to both driving economic growth and improving our health – 2 of the core elements of the Plan for Change – has been shown through the government’s action to date to support the sector. The Chancellor re-committed up to £520 million for the Life Sciences Innovative Manufacturing Fund at the Spending Review to pull investment into the UK, and red tape is being slashed to speed up clinical trials, while an up to £600 million investment will deliver a Health Data Research Service that will be unmatched globally – bringing the power of data to bear to unlock breakthroughs in the diagnosis and treatment of diseases.
The plan sets out a comprehensive roadmap built around 3 core pillars:
1. Enabling World-Class R&D – strengthening the UK’s leadership in science and discovery
2. Making the UK an outstanding place to start, scale and invest – growing homegrown companies and attracting global capital
3. Driving Health Innovation and NHS Reform – delivering better outcomes for patients and a more modern, preventative healthcare system
6 bold actions to kickstart change
The Life Sciences Sector Plan will be supported over the lifetime of the Spending Review by government funding of over £2 billion, alongside funding from UKRI and NIHR. Actions include:
1. Unlocking NHS data to find new cures
Up to £600 million investment to build the world’s most advanced health data system – helping scientists develop better treatments faster.
2. Speeding up clinical trials
Cutting red tape so patients can join trials sooner – and get access to life-changing medicines quicker.
3. Backing British manufacturing
Up to £520 million to invest in life sciences manufacturing projects – creating high-skilled jobs and making more treatments and medical devices here at home.
4. Getting new treatments to patients faster
Making regulation simpler and faster by boosting departmental support for the MHRA with additional investment – so doctors can use safe, effective innovations without delay.
5. Helping doctors use cutting-edge tech
A new NHS ‘passport’ to roll out proven tools faster – like AI cancer scanners or wearable devices that detect disease early.
6. Backing brilliant UK firms to grow
Helping fast-growing companies raise investment, scale up, and stay in the UK – with at least one major industry partnership secured every year.
Built for delivery
This Plan was shaped with input from over 250 organisations including doctors, scientists, NHS leaders and industry experts to ensure it delivers real impact. It builds on the strong foundations of the 10-Year Health Plan, extending its ambition by uniting health and growth interventions into a single, coherent strategy for the Life Sciences sector. Every action has clear goals and named leads. This is a Plan designed to deliver, not in isolation but as a vital part of the government’s broader Plan for Change.
Early momentum
The plan builds on the Chancellor’s commitment to reduce regulatory costs by a quarter, with increased investment in the MHRA to accelerate approvals and improve efficiency. It aims to streamline MedTech market entry through closer coordination between the MHRA and NICE.
The government is also focused on strengthening the UK’s clinical research infrastructure by improving trial delivery, expanding patient access, and embedding research more effectively within the NHS.
We have already started delivering on key actions, from investing up to £600 million in the Health Data Research Service alongside Wellcome, through to committing over £650 million in Genomics England and up to £354 million in Our Future Health, while the rollout of ‘innovator passports’ will help speed up the adoption of new tech and treatments on the NHS. This is clear evidence of our commitment and confidence in life sciences as a driver of both economic growth and better health outcomes.
Why life sciences matter
- Life Sciences is one of 8 priority sectors in the government’s Industrial Strategy – reflecting the sector’s high growth potential.
- Life sciences companies employ over 300,000 people, with more than three-quarters of jobs outside London and the Southeast, supporting opportunity in every part of the UK.
- The sector improves economic productivity by improving health. With long-term illness a major drag on workforce participation, better health leads directly to a stronger, more resilient economy.
- The Life sciences sector attracts record levels of private investment. In 2023, the UK raised the third highest amount of life sciences equity finance in the world, behind only the US and China.
- It is a UK export powerhouse -medicines and medical technologies were the UK’s third largest goods export by value in 2024.
- And it is innovation-intensive, with 17% of all UK business R&D spend is in pharmaceuticals, the highest of any sector.
- Artificial Intelligence (AI) is also revolutionising the Life Sciences sector across research, diagnostics, treatment, and manufacturing, reshaping how we prevent, treat, and manage disease. The potential economic impact is substantial, with McKinsey Global Institute estimating that AI could generate $60–110 billion annually for the pharmaceutical and medical-product industries alone.
BIA Chair Dr Daniel Mahony said:
Making the UK an outstanding place in which to start, grow, scale and invest in life science companies is key to driving UK economic growth. The life science sector plan is right to focus on getting substantially more public and private investment in early-stage companies, improved access to data, trials and skills to help companies grow, and more streamlined regulation and market access pathways to get innovative medicines to NHS patients. We particularly welcome the focus on unlocking pension funds to increase investment in scaling life science companies. In this parliament, the UK has the opportunity to create a truly-world leading life sciences ecosystem that works for start-ups, scale-ups and established global companies alike.
Chancellor of the Exchequer, Rachel Reeves, said:
Our world-leading life sciences sector employs hundreds of thousands of people and is a powerhouse for economic growth that puts more money in people’s pockets. Our Plan for Change is ramping up this success story even further.
The ten-year life sciences plan we have released today as part of our Industrial Strategy will cut red tape and deliver the investment we funded at the Spending Review so it can stay ahead of the curve globally and we can reap the economic rewards for years to come.
Science and Technology Secretary Peter Kyle said:
The life sciences sector is one of the crown jewels of the UK economy. It sits at the heart of both our Plan for Change, and our Modern Industrial strategy, as a unique catalyst for both economic prosperity, and better health outcomes for people across the UK.
Moving in lockstep with industry, academia and our NHS, we will unleash this sector as a force for good and for growth. The suite of measures we’re announcing today will unlock its full potential — attracting global investment, accelerating innovation, and delivering breakthroughs that will make the UK healthier, wealthier, and even more open for business.
Business Secretary Jonathan Reynolds said:
We’re committed to making the UK a life sciences superpower, and our modern Industrial Strategy has earmarked it as one of 8 priority sectors so it can double down on our strengths and keep us at the cutting edge of innovation.
This government is taking the bold action needed to help this £108 billion industry flourish and create new high-skilled, well-paid jobs right across the country, making our Plan for Change a reality.
Health Secretary Wes Streeting said:
This Life Sciences Sector Plan represents a pivotal moment in our mission to rebuild the NHS and shift our healthcare system from one that treats illness to one that prevents it.
By bringing together the brilliance of British science with the power of our NHS, we’re not just improving healthcare outcomes – we’re building a stronger economy and creating jobs across the country.
The £2 billion investment will help us make the most of our world-leading health data, speed up access to innovative treatments, and transform the experience of patients. This is how we deliver a health service fit for the future – by embracing innovation that saves lives, cuts waiting times, and makes the NHS sustainable for generations to come.
Quotes from BIA member scale-ups and industry representatives
Kit Erlebach, Chairperson of the UK’s Medicines Manufacturing Industry Partnership (MMIP) and Senior Director, Engineering at FUJIFILM Biotechnologies UK said:
The UK government’s new Life Sciences Sector Plan signals a clear and ambitious commitment to the future of life sciences in the UK. This plan provides a unique opportunity to build upon our nation’s strengths in research, development, and manufacturing, creating a fully connected and world-leading life sciences ecosystem, with innovative large and small medicines producers.
By articulating a clear vision for medicines manufacturing alongside discovery and development, the UK is laying the foundation for a thriving sector that benefits patients, drives innovation, and delivers economic growth. The focus on medicines manufacturing as a key component of this strategy is vital, providing the necessary support to strengthen the UK’s position on the global stage.
The allocation of £520 million in grants for expanding medicines manufacturing capabilities demonstrates the government’s dedication to fostering a competitive and sustainable industry. Combined with continued private-sector investment and collaboration across the sector, this targeted support will create new opportunities for innovation, employment, and improved health outcomes.
The Medicines Manufacturing Industry Partnership (MMIP) is proud to have contributed to support the development of this Sector Plan. In a rapidly changing international context, today’s announcement is a key step on the journey to enhance the UK’s international competitiveness. We are committed to working with Government to drive implementation of this plan, and the other necessary steps set out in the MMIP’s 10-year vision to deliver on our shared ambition.
Dr Kevin Lee, CEO of Bicycle Therapeutics said:
Bicycle Therapeutics welcomes the government’s vision to make the UK a Life Sciences superpower as part of its bold and ambitious Industrial Strategy. We support the strategy’s aspiration to accelerate the growth of UK companies by encouraging investment in the sector, simplifying the regulatory environment, and leveraging the UK’s unique healthcare ecosystem to innovate in clinical trial design. At Bicycle, we view this plan as an opportunity to support the advancement of our work to unlock the potential of our Nobel prize-winning science and create new medicines for a wide variety of diseases, starting with cancer. We are excited by the prospect of working in an ever more innovative and productive sector that will see British scientific breakthroughs transform the lives of patients across the globe.
Ros Deegan, CEO of OMass Therapeutics, said:
The new Life Sciences Sector Plan outlines ambitions that fit the UK’s world-leading capabilities and should help small and medium sized Life Sciences businesses scale, grow and keep innovation within the UK. As a growing biotechnology company with products approaching the clinic, we are encouraged to see actions designed to cut clinical trial approval times and improve access to capital – 2 critical factors that will benefit the sector and the wider economy.
Dr. Lucinda Crabtree, Chief Financial Officer of Oxford Biomedica, said:
The UK government’s Life Sciences Sector Plan sets out a clear commitment to making the UK a global hub for health innovation. At OXB, we have experienced first-hand how targeted government support — including funding from Innovate UK — can help unlock growth and build globally competitive capabilities. The plan’s focus on accelerating clinical trial processes, streamlining regulatory pathways, and investing in manufacturing, genomics, and health data infrastructure will support innovation and improve access to breakthrough treatments. These initiatives are vital to establishing the UK as a key market to scale life sciences businesses, attract investment and world-class talent, and drive long term economic growth.
Gordon Sanghera CBE, CEO and Co-founder of Oxford Nanopore Technologies, said:
The UK’s ambition to further expand the integration of genomic and molecular data into health systems and the economy - at scale - is exactly the kind of bold infrastructure investment that can improve lives and drive economic growth. In that system, being able to move quickly from innovation to implementation is essential to translating UK science into global health and economic impact.