AstraZeneca ditches £450m UK vaccine plant in fresh blow to Labour's growth mission

The pharmaceutical company, best known for developing the Covid-19 vaccine, said the decision was made after Labour failed to match the previous government’s offer of support.

It marks another blow to Rachel Reeves, who has seen the economy flatline since her Budget promised to bring growth back to Britain.

The decision reverses an announcement made by then-chancellor Jeremy Hunt at last year's March budget that would have seen the pharmaceutical company expand its existing facility in Speke.

Confirming the reversal on Friday, a spokesperson for AstraZeneca said: "Following discussions with the current Government, we are no longer pursuing our planned investment in Speke.

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"Several factors have influenced this decision including the timing and reduction of the final offer compared to the previous government's proposal."

The facility already in Speke will continue to operate as usual and no jobs are at risk.

The Treasury is yet to comment on the decision.

It comes just days after Chancellor Rachel Reeves told LBC that “the sun is out” for British business.

She told Andrew Marr: “I had to make difficult decisions when I became Chancellor.

“The public finances were in a total mess, and I had to put those back on a firm footing, and that meant difficult choices around spending, welfare and taxation, but we've now drawn a line under the economic and fiscal mismanagement of the previous government, which means we can now focus on the agenda of growth, and that is the number one mission of this government.

“My optimism for Britain burns brighter than ever.

“We've got a huge potential. You can see it here at this factory, at Siemens and so many other businesses around the country.

“I want to unlock that full potential, which is why we've announced a number of investments today.”