AstraZeneca’s UK vaccine hub under threat amid government funding rug-pull

AstraZeneca (LSE:AZN) shares closed Wednesday’s session slightly lower amid reported that its proposed £450 million investment in a vaccine manufacturing hub in Merseyside is under threat due to potential funding cuts from the UK government.

Rachel Reeves, Britain’s Chancellor of the Exchequer is reportedly considering reducing the state aid for the project from the £65 million initially promised by her predecessor, Jeremy Hunt, to £40 million.

The cut is part of a broader review of investment decisions made by the previous government, as the new leadership aim to address a £22 billion deficit in public finances.

AstraZeneca has meanwhile warned that if the funding is not secured, the project may be relocated to France.

The Merseyside site currently employs 400 people and focuses on childhood vaccinations, and it is seen as a key part of AstraZeneca's plan to expand its vaccine manufacturing capabilities.

Talks are reportedly ongoing between the government and AstraZeneca regarding the potential delivery of the project.

In London, AstraZeneca shares were down 18p or 0.14% closing at 12,902p.