The UK Government has launched a new Life Sciences Sector Plan as part of the government’s flagship Industrial Strategy, setting out a ten-year mission to harness British science and innovation to deliver long-term economic growth and a stronger, prevention-focused NHS.
The UK Government says it is already a global leader in life sciences, with the sector worth around £100 billion to the economy, and employing around 300,000 people.
The Life Sciences Sector Plan, developed in close coordination with the government’s 10 Year Health Plan, doubles down on that strength, turning cutting-edge research into real-world results with new treatments, faster diagnoses, and more lives saved.
It’s about making sure breakthroughs happen here and stay here, creating jobs, improving lives in every part of the country, and driving growth, says the government.
Life sciences’ critical importance to both driving economic growth and improving our health, two of the core elements of the Plan for Change has been shown through the government’s action to date to support the sector.
The Chancellor re-committed up to £520 million for the Life Sciences Innovative Manufacturing Fund at the Spending Review to pull investment into the UK. The government says red tape is being slashed to speed up clinical trials.
In comparison, an up to £600 million investment will deliver a Health Data Research Service that will be unmatched globally, bringing the power of data to bear to unlock breakthroughs in the diagnosis and treatment of diseases.
The plan sets out a comprehensive roadmap built around 3 core pillars, enabling world-class R&D – strengthening the UK’s leadership in science and discovery; making the UK an outstanding place to start, scale and invest – growing homegrown companies and attracting global capital, and driving health innovation and NHS reform – delivering better outcomes for patients and a more modern, preventative healthcare system.
The Life Sciences Sector Plan will be supported over the lifetime of the Spending Review by government funding of over £2 billion, alongside funding from UKRI and NIHR. There are six bold actions to kickstart change.
Actions include unlocking NHS data to find new cures with up to £600 million investment to build the world’s most advanced health data system, helping scientists develop better treatments faster.
Speeding up clinical trials include cutting red tape so patients can join trials sooner and get access to life-changing medicines quicker.
Backing British manufacturing will see up to £520 million to invested in life sciences manufacturing projects, creating high-skilled jobs and making more treatments and medical devices here at home.
Getting new treatments to patients faster will include making regulation simpler and faster by boosting departmental support for the MHRA with additional investment so doctors can use safe, effective innovations without delay.
Helping doctors use cutting-edge tech will see a new NHS ‘passport’ to roll out proven tools faster, such as AI cancer scanners or wearable devices that detect disease early.
Finally, backing brilliant UK firms to grow includes helping fast-growing companies raise investment, scale up, and stay in the UK, with at least one major industry partnership secured every year.
This plan was shaped with input from over 250 organisations including doctors, scientists, NHS leaders and industry experts to ensure it delivers real impact.
It builds on the strong foundations of the 10-Year Health Plan, extending its ambition by uniting health and growth interventions into a single, coherent strategy for the Life Sciences sector.
Every action has clear goals and named leads. This is a Plan designed to deliver, not in isolation but as a vital part of the government’s broader Plan for Change.
The plan builds on the Chancellor’s commitment to reduce regulatory costs by a quarter, with increased investment in the MHRA to accelerate approvals and improve efficiency. It aims to streamline MedTech market entry through closer coordination between the MHRA and NICE.
The government is also focused on strengthening the UK’s clinical research infrastructure by improving trial delivery, expanding patient access, and embedding research more effectively within the NHS.
The UK Government has already started delivering on key actions, from investing up to £600 million in the Health Data Research Service alongside Wellcome, through to committing over £650 million in Genomics England and up to £354 million in Our Future Health, while the rollout of ‘innovator passports’ will help speed up the adoption of new tech and treatments on the NHS.
It insists that this is clear evidence of the government’s commitment and confidence in life sciences as a driver of both economic growth and better health outcomes.
Life Sciences is one of eight priority sectors in the government’s Industrial Strategy, reflecting the sector’s high growth potential.
Chancellor of the Exchequer, Rachel Reeves, said: “Our world-leading life sciences sector employs hundreds of thousands of people and is a powerhouse for economic growth that puts more money in people’s pockets. Our Plan for Change is ramping up this success story even further.
“The ten-year life sciences plan we have released as part of our Industrial Strategy will cut red tape and deliver the investment we funded at the Spending Review so it can stay ahead of the curve globally and we can reap the economic rewards for years to come.”
Life sciences companies employ over 300,000 people, with more than three-quarters of jobs outside London and the Southeast, supporting opportunity in every part of the UK.
The sector improves economic productivity by improving health. With long-term illness a major drag on workforce participation, better health leads directly to a stronger, more resilient economy.
The Life sciences sector attracts record levels of private investment. In 2023, the UK raised the third highest amount of life sciences equity finance in the world, behind only the US and China.
Medicines and medical technologies were the UK’s third largest goods export by value in 2024.
Artificial Intelligence (AI) is also revolutionising the Life Sciences sector across research, diagnostics, treatment, and manufacturing, reshaping how we prevent, treat, and manage disease.
The potential economic impact is substantial, with McKinsey Global Institute estimating that AI could generate $60–110 billion annually for the pharmaceutical and medical-product industries alone.
Health Secretary Wes Streeting said: “This Life Sciences Sector Plan represents a pivotal moment in our mission to rebuild the NHS and shift our healthcare system from one that treats illness to one that prevents it.
“By bringing together the brilliance of British science with the power of our NHS, we’re not just improving healthcare outcomes – we’re building a stronger economy and creating jobs across the country.
“The £2 billion investment will help us make the most of our world-leading health data, speed up access to innovative treatments, and transform the experience of patients.
“This is how we deliver a health service fit for the future – by embracing innovation that saves lives, cuts waiting times, and makes the NHS sustainable for generations to come.”
The plan comes on the same day as the fourth “Made in the UK, Sold to the World” Roadshow, a government-led initiative designed to boost SME exports in the Life Sciences sector.
The roadshow focuses on the 8 sectors highlighted in the modern industrial strategy, forming part of the government’s commitment to supporting high-growth industries with the greatest potential to create jobs, increase productivity, and drive long-term economic growth.
The post UK Government announces NHS collaboration and growth opportunities for UK MedTech appeared first on AT Today – Assistive Technology.