Life Sciences and the Spring Budget 2023
The Spring Budget 2023 spotlights the critical link between life science advancements and long-term economic growth. The government’s fiscal plans focus on accelerating patient access to treatments, strengthening safety standards, and leveraging the UK’s expertise in research and innovation.
Chancellor Jeremy Hunt’s announcement promises £3.5 billion to transform the UK into a science and technology superpower, with targeted support for research and development (R&D), regulatory improvements, and regional innovation clusters. Key initiatives for the life sciences sector include:
• Tax relief for R&D-led organisations
A £500 million per year support package will give 20,000 R&D-intensive businesses a higher rate of tax relief. In addition, a new ‘full expensing’ scheme will allow companies to claim 100% capital allowances on qualifying plant and machinery investments.
• MHRA funding
The Medicines and Healthcare products Regulatory Agency (MHRA) will receive £10 million extra funding over two years to speed up patient access to treatments. From 2024, the MHRA will introduce new, swift approvals systems, clearing the way to treatments pre-approved by trusted international partners and ground-breaking technologies such as cancer vaccines and AI therapeutics for mental health.
• Regional investment and innovation
An Innovation Accelerator plan will direct £100 million into 26 transformative R&D projects in Glasgow, Greater Manchester, and the West Midlands. Meanwhile, 12 high-potential investment zones will launch around university technology and research hubs across the UK.
• Quantum strategy and AI research
The government has earmarked £900 million of funding for an AI Research Resource and exascale supercomputer. A £2.5 billion ten-year quantum research and innovation programme also promises to transform the UK’s approach to life sciences research – from drug discovery to genomics – by delivering more accurate computational tools for data analysis, simulation, and optimisation.
• Regulation of digital technologies
The government will accept all recommendations from Sir Patrick Vallance’s review into regulating emerging digital technologies, helping to set the gold standard for pro-innovation regulation.
Planning for progress
The government’s plans could enable significant leaps forward in life sciences – boosting patient care, driving discovery, and attracting overseas investment for UK-based research. However, world-class innovation requires an expansive, highly skilled workforce, and the sector is currently facing difficulties in filling key roles.
Although details of the Spring Budget’s plans are still in development, employers can take immediate steps to prevent future skills challenges. By refining recruitment methods, investing in existing employees, and taking advantage of available support, organisations can get a head start on strengthening their talent pipeline.
Capitalising on existing capabilities
The Chancellor’s promised investment will speed the life sciences sector’s already rapid evolution, widening the gap between necessary skills and available expertise. By exploring upskilling and reskilling prospects, employers can futureproof their HR, training, and hiring plans.
• Reframing recruitment:
Organisations across every sector are struggling to secure tech talent to help them grow. Taking on promising candidates with immediate upskilling potential could help bridge pressing knowledge gaps.
• Internal talent development:
Growing the expertise of your current workforce could help your business make the most of upcoming opportunities – while aiding retention and employee satisfaction levels. Introduce upskilling and reskilling programmes to equip existing workers with future-facing capabilities.
• Employee retention:
In the competitive life sciences recruitment market, it’s easy to overlook the needs and knowledge of established employees. Channelling time and resources into staff engagement, retention, and training programmes can unlock in-house potential and prevent further skills-related setbacks.
Taking an innovation-first approach
The government’s aims for discovery and innovation across the life sciences industry will be driven by new ideas, outlooks, and approaches. Casting the net wider to include candidates from diverse backgrounds will keep the sector moving forward with fresh perspectives and creative working methods.
• Diversity and inclusion:
Life sciences employers that embrace diversity can achieve a competitive advantage in recruiting and retaining talent – and set themselves apart in a market where fairness, representation, and equality are becoming core candidate priorities.
• New ways of working:
Additional government funding could open currently inaccessible avenues of research, innovation, and technology. Organisations and research centres that readily embrace new approaches and working practices – such as agile methodologies and continuous improvement programmes – will be poised to take immediate advantage of new opportunities.
Tapping into modern apprenticeships and multi-generational talent
The new budget outlines plans for ‘returnership’ programmes aimed at upskilling people over 50 to re-enter the workforce. The initiative runs alongside the existing Apprenticeship Levy, a funding pot supported by businesses to drive apprenticeship training.
While the specifics of returnerships have not yet been released, the Apprenticeship Levy programme is available immediately – and is even open to your existing staff. Modern apprenticeships offer free training for current employees and provide a cost-effective route to upskilling your people.
Both schemes underline the role of varied, multi-generational workforces in tackling talent scarcity across the UK. But to attract and retain life sciences candidates across all age groups, employers should consider whether their hiring practices, pay and benefits packages, and employee support appeal to the widest possible audience.
• Inclusive recruitment:
Inclusivity fuels innovation, so remove barriers that could be holding back your best candidates. Anonymous CV screening, neutral job descriptions, and partnerships with ED&I-aware recruiters help shape a fair, transparent hiring approach that welcomes individuals with varied experience, skills, and ideas.
• Age-diverse attraction tools:
To secure top multi-generational talent, employers should shape candidate offers in line with priorities across all age cohorts – from millennials to baby boomers. These could include hybrid working, clear career pathways, and wellbeing programmes.
Speak to a life sciences recruitment specialist
The Spring Budget 2023 outlines an exciting future for the UK life sciences industry. We can help you source and shape the right talent to bring it to life.
Adecco’s life sciences recruitment teams provide specialist support for niche placements and wide-scale workforce solutions – across medical technology, biotechnology, pharmaceuticals, diagnostics, digital health, cosmetics, and more.
To discuss your short- and long-term hiring goals – and how government plans could impact them – speak to one of our experienced consultants. Get in touch today.