Electing To lead On Life Sciences
Electing to lead on Life Sciences
Life sciences has emerged as one of the most desirable asset classes in real estate, ranking highly on investor prospect rankings in ULI / PwC’s most recent Emerging Trends in Real Estate. With a general election on the horizon, ING maps what the two leading parties have been saying about the future of the sector.
Our analysis reveals that the life sciences sector has been mentioned 40% more frequently in 2023 than the year prior, an indication of its increasing importance to UK plc, and visibility to the public. Mentions in 2024 look set to surpass that figure at their current trajectory.
So, what are the main parties saying? The Labour party has set out key actions it would take on life sciences as part of its sector plan. These steps are intended to build an NHS that is fit for the future and facilitate pioneering breakthroughs, by strengthening foundations for scientists and researchers alike. The proposed plan is being delivered across four key areas: industrial strategy, planning reform, scaling-up and access to finance. The party expects this approach to create more than 100,000 jobs by 2030.
Labour currently supports the government’s allocation of £520m in funding for the life sciences sector over five years from 2025, announced as part of its advanced manufacturing plan.
The Conservative party has consistently emphasised the significance of the life sciences sector to the UK economy, actively working to bolster it through policy measures and regulatory frameworks. Most notably, the government commissioned the Life Sciences Industrial Strategy report in 2017 and formulated its own strategic blueprint, the Life Sciences Vision in 2021. Key objectives outlined in this vision include enhancing the tax landscape to stimulate research, development and capital investment within the UK life sciences industry, and fostering the expansion of life sciences hubs across the country. Alongside this, the mission aims to attract skilled professionals to the sector in the UK and establishing innovation hubs for data.
Communications around this sector remains key. The life sciences sector is increasingly appealing to UK real estate investors, yet this surge in interest also presents challenges. Among them are the scarcity of suitable and accessible space for both emerging enterprises and established firms, alongside concerns regarding the adequacy of surrounding infrastructure.
James Child
Head of Research, ING Media
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