The international going-rate for state aid to part-fund a large pharmaceutical facility costing a few hundred billion pounds, euros, dollars, or whatever, is hard to pin down. Governments don’t publicise sweeteners and a company’s thinking will be guided by many factors, including the wider tax regime. But a rough rule of thumb, say industry insiders, is a 15%-25% subsidy for capital costs. Singapore has a reputation for being more generous.
Thus, if it is correct, as the FT reports, that Jeremy Hunt verbally offered AstraZeneca £65m towards a proposed £450m vaccine-manufacturing plant in Speke in Merseyside, one could say the last chancellor did OK with 14%.
