UK trade markets 'growing faster than EU markets' says Truss

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Chancellor Rishi Sunak is in the process of finalising a proposal to launch a new public-private investment fund to back fast-growing businesses in biotech and life sciences, according to a report in The Financial Times. The plans could be announced as early as the crucial Spring Budget on March 3, providing a much-needed boost to UK industry as it looks to rebound quickly from the damage inflicted from the coronavirus crisis.

The Life Sciences Investment Programme would see the UK Government commit £200million, with this then being matched with up to £400million in external financing that would either be invested directly into firms in the sector or via existing biotech funds managed by specialist managers.

Government officials have been locked in talks with a $232billion (£168billion) state-owned investment company called Mubadala, according to several people close to the negotiations, in the search for Gulf-based sovereign wealth to provide funding.

Talks have progressed to an advanced stage, but a person close to Mubadala said such a deal was quite possible, “but just one option, down the road”.

The final details are reportedly close to being completed but progress had stalled while the Treasury tried to secure sovereign wealth fund investment.

One person close to the ongoing talks said the huge sovereign wealth investment would “turbocharge” the new life sciences strategy, but added the fund was not dependent on securing Middle Eastern cash.

A number of UK-based departments have been involved in the talks, including the Treasury, the business department, the state-backed British Business Bank and the recently formed Office for Investment.

A Treasury spokesperson said: “We remain committed to providing £200million funding to the Life Sciences Investment Programme, to unlock additional investment in our world-leading life sciences sector.”

The UAE has a long history of making lucrative investments into the UK, including the London Array offshore wind farm and London Gateway, which is run by Dubai’s state-owned ports operator, DP World.

However, relations had threatened to completely collapse in 2018, when the UAE detained and found British academic Matthew Hedges guilty of spying for the UK Government.

He furiously denied those charges and was eventually pardoned.

Since becoming Prime Minister in July 2019, Boris Johnson has repeated his intention to make the life sciences industry a central part of UK economic growth following Brexit and the coronavirus pandemic.

In his first speech as Prime Minister, Mr Johnson said the life sciences sector was one of the country’s “enormous strengths”.

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In that same year, he first floated ideas for the fund, insisting it would help companies commercialise medical breakthroughs.

In November, he met Microsoft supremo Bill Gates at Downing Street, along with 10 life science companies, to discuss future innovation and manufacturing of coronavirus vaccines, treatments and diagnostics.

Earlier this week, it was announced the UK had agreed a new multi-billion pound trade agreement with India to boost Britain’s “outward-looking” stance across the world.

International Trade Secretary Liz Truss India’s trade relationship was worth £23billion in 2019 with more than 383 Indian companies in the UK supporting 82,000 jobs.

She hailed the agreement as a “new chapter as an outward-looking global Britain” branding India as an “economic powerhouse.”

Ministers also said it would improve trading across borders and standards to make it easier for UK investors and exporters to do business in the nation.

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