Chancellor Rachel Reeves described a £500 million private investment by a US firm into a UK research campus as a “real show of confidence in what this Government are doing to grow the economy”.
The investment by San Francisco-based developer Prologis, announced days after Labour’s Budget, will fund a 115,000 sq ft expansion to Cambridge Biomedical Campus.
The campus already supports more than 22,000 jobs and generates £4.2 billion each year for the UK economy.
The new development will house high-tech labs, supporting clinical trials and diagnostic services.
It will inject millions into the British economy every year and create more than 2,120 highly-skilled jobs in roles from research to diagnostic.
Ms Reeves visited the campus on Friday and toured research institute the MRC Laboratory of Molecular Biology, speaking with staff and being shown some of the science that takes place there.
Asked about the investment, she said: “It’s a real show of confidence in what this Government are doing to grow the economy that just a few days after the Budget Prologis are announcing this £500 million investment into the UK here in Cambridge to grow the life science industry in Britain.
“The UK’s got huge strengths in industries like life sciences but this additional investment will mean that we can create more good jobs paying decent wages as well as developing here in the UK lifesaving drugs and that’s incredibly exciting because that means patients in the UK having access to better quality medicines while also building our research capability.”
Research conducted at Cambridge Biomedical Campus addresses the most pressing global healthcare challenges, including developing techniques for spotting cancer early and understanding dementia.
Paul Weston, regional head at Prologis UK, said: “There is a lot riding on this pivotal first Budget and strong support from the private sector to follow through on investment pledges will be critical.
“The Government’s commitment to unlock foreign direct investment matches our own focus on partnering with public and private stakeholders to invest and deliver the infrastructure needed for sustainable, long-term growth.
“Steps already taken through the launch of the National Planning Policy Framework and the Green Paper for the Industrial Strategy are paving the way for a stronger, more resilient industrial base.
“These initiatives will ensure the UK remains at the forefront of industrial innovation and Prologis are ready to support the Government’s ambitions, providing the spaces that can unlock growth and development.
“We look forward to furthering our collaboration and investment activity, ensuring the UK continues to lead on a global stage.”
Science and Technology Secretary, Peter Kyle, said: “The UK’s life sciences sector is central to our ambitions for the UK – from driving economic growth through to saving and improving lives through better treatments.
“Major investments like this from Prologis, bringing the sector’s largest global companies under one roof in Cambridge, is another vote of confidence in the UK’s approach to long-term growth.
“Coming just days after the Chancellor raised public funding for R&D to record levels, this underlines how this Government is in lockstep with business in our joint ambition to make sure everyone in the UK benefits from advances in science and technology.”
