UK life sciences sector plan: A framework for growth and innovation
Executive summary
The UK government has set out an ambitious roadmap to position the UK as Europe’s leading life sciences economy by 2030 and third globally by 2035. The Life Sciences Sector Plan aims to tackle long-standing challenges such as regulatory delays and limited access to investment, introducing faster regulatory pathways, increased access to capital and a strong focus on AI-driven and digital innovation.
The Life Sciences Sector Plan is built on three strategic pillars: (1) world-class R&D; (2) business growth and investment; and (3) health innovation & NHS reform, alongside a series of targeted actions.
Life sciences companies should prepare for new digital platforms and pathways, with enhanced data security and AI-readiness at the core. The plan sets clear targets, creates accountability structures and affirms commitment to industry partnership in order to make the UK an increasingly attractive destination for MedTech innovation, investment and growth.
Introduction
The UK government’s Life Sciences Sector Plan (the “ Sector Plan”) sets out an ambitious vision to position the UK as a leading European life sciences economy by 2030 and third globally by 2035, behind only the US and China.
The Sector Plan acknowledges that while the UK’s life sciences sector is one of the country’s “greatest assets”, it has struggled to remain competitive and attractive to investment in recent years for a number of reasons such as regulatory hurdles, limited access to growth capital and infrastructure constraints.
As part of the UK government’s wider 2025 Industrial Strategy, which outlines a ten-year plan for encouraging investment in UK businesses in target sectors, the Sector Plan aims to drive both economic growth and improved healthcare outcomes by addressing barriers through a coordinated and collaborative approach.
The Sector Plan acknowledges the role of devolved governments and regional leaders, with specific place-based interventions and the establishment of Regional Health Innovation Zones.
This Law-Now provides an overview of the Sector Plan and explores the potential implications for life sciences companies operating in the UK.
What does the Sector Plan entail?
The Sector Plan is built on three core pillars, each supported by a number of targeted actions:
- Enabling world class research and development (“R&D”);
- Making the UK an outstanding place to start, grow, scale and invest; and
- Driving health innovation and NHS reform.
The Sector Plan sets out 33 actions in total, and six headline actions are identified to deliver early impact.
1. Creation of a Health Data Research Service (“HDRS”)
The Sector Plan outlines plans to create a HDRS, backed by up to £600 million investment from the government and the Wellcome Trust (initial go live is expected in 2026).
The HDRS aims to provide a secure, AI-ready platform that brings together genomic, diagnostic and clinical data at population scale. The health data platform is intended to support advanced research, clinical trials and AI investment.
2. Reduction in clinical trial set-up times
The Sector Plan sets a target to reduce substantially the time taken to establish and start commercial clinical trials to under 150 days by March 2026. The government intends to achieve this through standardised contracts and streamlined processes, and the removal of unnecessary bureaucracy.
3. Manufacturing investment
The £520 million Life Sciences Innovative Manufacturing Fund aims to encourage manufacturing investments in the UK, with bespoke support for investments exceeding £250 million. Greater manufacturing capability within the sector will help improve supply chain resilience through onshoring critical elements of the life sciences supply chain.
Whilst not one of the six headline actions, the British Business Bank has committed an additional £4 billion of Industrial Strategy Growth Capital to support investment and growth in the government’s Industrial Strategy growth-driving sectors, crowding in £12 billion of private sector capital. This will help UK life sciences companies scale, reduce their reliance on international investment, and encourage companies to resist pressure to shift activities overseas.
4. Streamlining regulation and market access
The Medicines and Healthcare products Regulatory Agency (“MHRA”), which regulates medicines, medical devices and blood components for transfusion in the UK, is set to undergo a digital transformation to deliver faster, more predictable and proportionate regulatory decisions from 2026.
The Sector Plan includes measures to streamline market access for new medicines and medical technologies. There will be enhanced collaboration between the MHRA and the National Institute for Health and Care Excellence, including the launch of a fully integrated scientific advice service and parallel approvals. This coordinated approach seeks to reduce the time it takes for products to move from regulatory approval to patients.
5. Introducing low-friction procurement
The Sector Plan seeks to streamline access and adoption of MedTech by reducing duplication and introducing low-friction procurement and contracting mechanisms, to enable proven MedTech products to reach patients more quickly.
6. Partnering with industry to drive growth and innovation
The Sector Plan sets out intentions to continue partnering with the sector throughout delivery. This includes the UK government seeking to secure at least one major strategic partnership annually with leading life sciences companies, along with the creation of a dedicated support service to help 10-20 high-potential UK companies to scale, attract investment, and remain headquartered in the UK.
Key implications for life sciences companies
The Sector Plan promises a more dynamic and responsive regulatory environment, with opportunities for accelerated approvals and streamlined market access. However, life sciences companies will needs to engage early with the new digital platforms and pathways.
The expansion of health data access, particularly through the HDRS, will require robust data protection and cybersecurity strategies. Companies should be prepared to navigate these requirements as new health data initiatives are progressed. Patient data and data analytics remain critical in the sector; as access to health data expands, life sciences companies should continue to focus on data security and the implementation of comprehensive measures e.g. to reduce the risk of ransomware attacks.
The growth of AI-led innovation and businesses is, unsurprisingly, a recurring theme throughout the Sector Plan. AI is continuing to transform the sector across research, diagnostics and treatment. The Sector Plan aims to accelerate AI development by enhancing digital connectivity and through national assets like ‘Dawn’, the UK’s first AI-supercomputer dedicated to health and life sciences.
Whilst at this stage the Sector Plan is largely strategic, it sets out key metrics that will be used to track progress, assigns ownership of actions, and includes an implementation timeline and commitment to regular updates in collaboration with the sector (e.g. Annex A to the Sector Plan contains a metrics and accountability table).
Looking ahead in the sector
The Sector Plan is a significant step forward, providing a strong framework for growth and innovation and addressing (at least in principle) some of the sector’s long-standing challenges and frustrations. The clear focus on delivery, transparency and collaboration with businesses in the industry will no doubt be welcomed.
However, the success of the Sector Plan will depend on effective implementation, ongoing stakeholder engagement and cross-sector and government collaboration. This is particularly important as the Sector Plan has been developed in conjunction with, and informed by, other government action plans.
Life sciences companies should monitor implementation closely and engage proactively with new regulatory and procurement pathways to ensure that they are well positioned for new opportunities.
Whilst the ambitions in the Sector Plan are widely welcomed, there are some concerns it does not go far enough. The Association of the British Pharmaceutical Industry has warned that the UK government’s aim to be a leading life sciences economy will not be realised unless the UK changes its approach to investment in medicines. We also suspect it will take some time for the increased access to capital to be fully realised, and global competition for capital remains strong.
For more information on how the Sector Plan may impact your business, please speak to the CMS Life Sciences & Healthcare sector specialists.
