As the government prepares to unveil its Industrial Strategy in June, life sciences must be recognised not just as a sector of national importance, but as a central pillar of future economic growth and public health resilience. Life sciences are uniquely positioned at the intersection of health, technology, and innovation with the capacity to deliver breakthroughs that transform lives and boost UK productivity.

Yet to fully harness this potential, we must address the critical issue of certainty. For investors, innovators, and international partners alike, the life sciences ecosystem must be underpinned by long-term policy stability, regulatory clarity, and a shared commitment to strategic collaboration.

People and Skills: Building a Healthier, More Productive Society

The life sciences sector is not only about developing cutting-edge medicines it’s about enabling people to live longer, healthier, and economically active lives. As we look to improve workforce productivity and reduce pressure on the NHS, investment in preventative health, diagnostics, and long-term condition management becomes crucial. Innovations in areas such as digital therapeutics, remote patient monitoring, and personalised cancer treatments offer both health and economic returns.

However, the sector cannot grow without the right skills base. There are persistent gaps in biostatistics, regulatory science, and advanced manufacturing. Ensuring education pipelines from secondary school STEM initiatives to postdoctoral research training align with future industry needs is vital. Recent moves to expand apprenticeships in biotech manufacturing are welcome but must be scaled up significantly to support the sector’s ambition.

Encouraging Innovation Through Long-Term Stability

The UK has a strong reputation for early-stage research, supported by our world-class universities and the strength of the NHS as a partner in clinical trials. However, companies often struggle to translate innovation into scalable commercial success. One key barrier is short-term policymaking. Frequent changes to R&D tax credits, shifting criteria for grant funding, and inconsistent messaging around industrial priorities deter long-term investment.

To stimulate innovation, government must commit to a clear, multi-year strategy one that aligns regulatory, funding, and workforce policies. A stable innovation ecosystem, supported by vehicles like the Life Sciences Investment Programme, gives businesses the confidence to take calculated risks and plan across the development lifecycle, from bench to bedside.

Regulatory Clarity: An Enabler for Growth

The UK’s regulatory environment, while respected globally, can be complex and slow to adapt. Businesses cite delays in securing approvals from the Medicines and Healthcare products Regulatory Agency (MHRA) and a lack of clarity in areas such as digital health, AI in medical devices, and cell and gene therapies. For example, smaller firms working on AI diagnostic tools have struggled to navigate overlapping data and device regulations, while manufacturers of advanced therapies face high compliance burdens without streamlined support.

Countries like Singapore and Australia have made strides in creating more agile regulatory sandboxes for emerging technologies - allowing companies to test and scale innovations in a controlled environment. The UK’s introduction of the Innovative Licensing and Access Pathway (ILAP) and recent funding to enhance the MHRA’s capacity are steps in the right direction, but a broader rethink is needed. Proportionate, fast-track approval routes, coupled with strong post-market surveillance, could position the UK as the global go-to for life sciences regulation.

Crowding In Investment: Making the UK Globally Competitive

Life sciences investment in the UK has grown, but international comparisons show we still underperform in scaling companies and manufacturing capacity. In 2023, venture capital investment in UK biotech fell by over 30%, reflecting both global trends and domestic uncertainty. While the British Business Bank, UKRI, and the British Patient Capital programme play important roles, there is a need for greater coordination and ambition.

In the US, the Advanced Research Projects Agency for Health is channelling billions into high-risk, high-reward research, while countries like Ireland and Switzerland offer attractive tax regimes and dedicated life sciences enterprise zones. The UK must match this ambition by de-risking private capital through co-investment mechanisms, providing long-term fiscal incentives, and ensuring that strategic sectors like biomanufacturing receive sustained backing.

International Partnerships and Learning from Global Best Practice

If the UK is to remain globally competitive, it must continue to engage internationally both in trade and research. Collaboration through Horizon Europe has recently resumed, which is a critical win for science diplomacy and funding. But we must also look to other international models.

For instance, Denmark’s public-private partnership model, anchored by the Novo Nordisk Foundation, has created a thriving ecosystem around life sciences innovation. Similarly, Germany’s High-Tech Strategy mobilises coordinated action across government, academia, and industry, underpinned by long-term funding and industrial policy. The UK should consider emulating these models by establishing mission-led programmes that support commercialisation and translation not just discovery.

Ultimately, the UK’s life sciences sector will thrive where there is certainty, coherence, and long-term vision. This means aligning regulation, education, infrastructure and fiscal policy under a common strategic purpose. It means investing in both the science and the systems that support it from clinical trial capacity to digital infrastructure. And it means valuing partnerships: across departments, between sectors, and with international allies. The All-Party Parliamentary Group (APPG) for Health will continue to spotlight life sciences throughout 2025, recognising its centrality to both economic growth and better health outcomes. As the Industrial Strategy takes shape, let’s ensure that life sciences are not just included but prioritised.