Chancellor hopes to cut state aid for Speke vaccine plant to £40m. But pro-growth Treasury must not let project slip overseas• Blow to AstraZeneca vaccine project as Reeves plans funding cutsThe 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%. Continue reading…
Source link : https://www.theguardian.com/business/nils-pratley-on-finance/article/2024/aug/14/rachel-reeves-nail-down-uk-astrazeneca-deal-collapse-embarrassing
Author : Nils Pratley
Publish date : 2024-08-14 17:08:47
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