With a focus on increasing business investment and growing industries of the future, the UK's Industrial Strategy released this week sets out its approach to driving long-term growth. Life sciences is one of eight high key sectors (the IS-8) it identifies – recognising the sector's potential to drive economic growth, innovation and regional development. So what are the key points to know for those engaged in life sciences and what will feature in the UK's plan for the sector? We pull out some of the highlights from the strategy.

The strategy sets out an intention to make the UK one of the world's top three Life sciences economies through a package of reforms and investment. While this primarily focuses on enabling growth in city regions and clusters where it has a strong presence, it also seeks to build the sector's international competitive advantage. Here, it states an ambition to make the UK the leading life sciences economy in Europe by 2030 and the third most important life sciences economy globally.

The ways it seeks to realise this ambition centre around:

Promoting trade and international cooperation

Through international partnerships the aim is to deepen collaboration between the UK and partner nations in high-growth industries, including life sciences. Partnerships with countries such as Japan, France, and Germany are highlighted as crucial for enhancing investment and fostering resilient growth. These collaborations are intended to strengthen the UK's position as a leader in life sciences.

Expanding access to finance

From the Government's "Invest 2035" consultation last year, the strategy recognises some of the challenge around access to finance in the UK – more so than in the US. Focusing on attracting 'transformative private investment' to improve access to domestic capital, it outlines a number of 'interventions', or actions. Here, life sciences will benefit from the amended mandate of the National Wealth Fund, which will prioritise investment in the IS-8.

Legislation will also be brought forward to increase the maximum size of the UK Export Finance's (UKEF) financial portfolio, with additional UKEF Direct Lending capacity made available to help stimulate overseas demand. Alongside this, the British Business Bank's capacity and capability will be increased to enable it to invest across the lifecycle of firms with high potential.

Regional growth

The strategy also discusses the role of life sciences in supporting regional growth and economic security – highlighting how 'clusters' across the UK are critical to the performance of the IS-8. By increasing investment and fostering growth in life sciences across various regions of the UK, the aim is to ensure that the benefits of this dynamic sector are widely distributed.

A range of initiatives are summarised in the paper, including that of sector plans with devolved governments in Scotland, Wales and Northern Ireland that will include sectoral funding programmes to benefit life sciences businesses. There is also a commitment to deepen support for the Oxford Cambridge Growth Corridor, which has a strength in life sciences as well as tech, defence, advanced manufacturing and clean energy.

This regional focus is seen as essential for attracting private investment and achieving balanced and inclusive economic development.

Technological advances

The strategy highlights the transformative impact of technological advances in life sciences, clean energy, and artificial intelligence. These advancements are seen as pivotal in reshaping the economy, with the potential to significantly enhance productivity and the way we live.

An important factor for growth is seen as UK's ability to remain agile and drive 'innovation pull-through' – becoming confident adopters of new technology.

One of the actions in this respect is the establishment of new AI Growth Zones across the UK to attract investment in AI infrastructure in strategic locations, with support for planning approvals, access to energy, and partnerships with the private sector.

Bespoke sector plans

For each of the IS-8 there will be a tailored sector plan – five of these are already published, with life sciences among those due to follow. While details of the Life Sciences Sector Plan are awaited, the industrial strategy highlights that this will include new measures to streamline regulation, introduce low-friction procurement, and support high-potential UK companies to scale, invest, and remain in the UK.

The plan is being developed alongside the forthcoming 10-year Health Plan to ensure alignment between health and growth objectives. The actions and initiatives it covers will sit under the three pillars of: enabling world class research and development (R&D); making the UK an outstanding place in which to start, grow, scale and invest; and driving health innovation and NHS reform.

From an R&D perspective, several commitments are set out including providing up to £600 million for a Health Data Research Service to create the world’s most advanced, secure, and AI-ready health data platform. At least £30 million is also earmarked for investment into preclinical infrastructure linked to translational research networks. And up to £520 million is to be channelled into the Life Sciences Innovative Manufacturing Fund to help bring manufacturing investment into the UK.

The plan will prioritise what are termed 'frontier industries' with the greatest growth potential – namely, pharmaceuticals and medical technologies (MedTech) – and support city and regional clusters where these industries are strongest.

Other actions outlined are to reduce clinical trial approval times and “streamline” drug approval processes at the Medicines and Healthcare products Regulatory Agency; the aim being to accelerate development of new treatments and make it more attractive for companies to invest in the UK. NHS procurement of medical technology will also be accelerated.

Planning for the future

While more details will be published on the Life Sciences Sector Plan, the industrial strategy brings positive news of the support being invested into the industry and its important role in driving innovation and growth. For businesses and organisations that are in the pharmaceutical and MedTech sub-sectors, in particular, this will help to break down potential challenges to accessing finance for investment and R&D.

Changes are already underway as the recent UK spending review highlighted – announcing that the annual R&D budget will increase to £22 billion annually by the end of the review period. We continue to monitor developments in the sector, sign up to receive our updates.