AstraZeneca scraps £450m expansion of vaccine plant

Rachel Reeves was accused of scoring a "massive own goal" after AstraZeneca scrapped plans for a £450m expansion of its vaccine manufacturing plant in Merseyside yesterday, blaming a cut in the funding on offer from the government.

- Heather Stewart Julia Kollewe

Only two days after the chancellor highlighted life sciences in a speech setting out her growth policies, the company said it had decided to scrap the high-profile project.

The former chancellor Jeremy Hunt, who announced the initial deal with AstraZeneca as part of his budget in March, attacked the government's decision to cut the taxpayer support on offer to the drugmaker.

"It is a massive own goal and totally contradicts the chancellor's growth speech," Hunt said. "How can she possibly implement a growth strategy if penny pinching once again wins the day?"

A spokesperson for AstraZeneca said: "Following discussions with the current government, we are no longer pursuing our planned investment at Speke. Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government's proposal."