Life sciences-related real estate players have been cheered by the government’s financial commitment to the industry. Chancellor Rachel Reeves is expected to inject £86bn into the UK’s tech, life sciences, advanced manufacturing and defence sectors. The move forms a part of the Modern Industrial Strategy, with the capital expected to go towards everything from new drug treatments to longer lasting batteries.
Remi Smith, associate director at Avison Young UK, said: “This government investment is a clear call-to-action. We must nurture our science and technology innovation clusters, and I’d expect private sector investors to follow suit. There’s no better time to be going all in on our innovation sectors.”
Sustained impact
The funding comes at “a pivotal moment”, according to Nathan Morgan, project director and global sciences leader at Gensler. He told Estates Gazette: “Organisations are under increasing pressure to deliver innovation and adapt to rapidly evolving technologies, all while managing constraints around space, sustainability and cost.”
Hence, industry players have called on the government to bring in a strategy to support the growth of innovators beyond funding alone.
Kath Mackay, chief scientific officer at Bruntwood SciTech, said: “To fully realise the potential market opportunity and deliver on the UK’s ambitions to be the global innovation leader, the surrounding frameworks must also be in place to enable delivery at pace and scale.
“That is why this investment must work in conjunction with the joined-up, soon-to-be-announced, Industrial Strategy. Together, this investment and the strategy could help to unlock specialist developments and support the creation of innovation-led ecosystems nationwide. That means enabling deeper collaboration between industry, academia and local government, and ensuring regional voices are central to decision making.”
Richard O’Boyle, executive director at Pioneer Group, added: “While the headline figure is ambitious, much of it maintains current funding levels. Sustained impact will depend on more than just capital; it needs talent pipelines, and VISA reform.
“The emphasis on regional funding with a focus on high impact areas is encouraging. This is how long-term innovation ecosystems are built – not just by top-down funding, but by recognising and supporting local strengths.”
The government is expected to devolve powers allowing local leaders to “make the most” of unlocking opportunities around sector-specific growth.
Matt Lee, head of science and technology at Carter Jonas, said: “The UK’s regional clusters have much to offer in terms of research, talent and expertise in sectors such as life science, advanced manufacturing and clean technology.”
Jonathan Lowe, head of science and technology for the North at CBRE, supported the view, adding that the regions outside of the Golden Triangle are expected to be beneficiaries of the proposed funding. He said: “This strategic investment will benefit local economies from a health inequality standpoint, while growing and retaining science and tech firms.”
Targeted approach
Across the North, Newcastle has taken the reins in data and healthy ageing, while Liverpool is leading in vaccines, tropical medicine and material tech.
Colin Sinclair, chief executive of Knowledge Quarter Liverpool, said: “There are major opportunities here to expand on specialisms – such as materials chemistry and vaccine development – to create innovation super clusters with even greater collaboration, from academia, the public sector, the private sector and the local community.”
Manchester has emerged as a hub for diagnostics, precision medicine and advanced materials. The region is also expected to benefit from its innovation partnership with Cambridge, acting as the catalyst to further drive inward investment and attract the next generation of occupiers.
Chris Rumsey, development director at MIX Manchester, said: “Government support of this kind underpins the confidence already being shown by investors and developers in the city. It signals a shift towards a more connected, regional economy. We believe Manchester is ready to lead from the front.”
James Sheppard, international head of commercial strategy at Kadans Science Partner, added: “Co-localisation is key in the science and tech sectors. There are clear benefits to businesses and researchers in disparate fields working alongside each other, sharing technology and research to break new ground. This should be no different in our regions.”
Turning to Teeside, the region has been marked for its bio manufacturing and green tech, while Yorkshire has emerged as health tech hub, with strengths in AI diagnostics, medical devices and next-generation therapies.
Deb Hetherington, director of innovation ecosystems at Scarborough Group International, said: “This funding empowers areas like Yorkshire to shape growth around their unique strengths. This as an opportunity to accelerate collaboration across our ecosystems.”
Tani Dulay, chief executive at Woodbourne Group, echoed this, with the developer working closely with Mayor Richard Parker to “deliver lasting regional impact”. Dulay said: “With strengths in advanced therapies, membrane science, and digital diagnostics – co-located alongside HS2 and one of Europe’s youngest, most diverse populations – Birmingham Knowledge Quarter , a designated investment zone where Woodbourne is a strategic delivery partner, will exemplify how place-led innovation drives inclusive growth.”
Image: © Adobe Stock
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