UK budget R&D boost welcomed by ABPI

The UK government's budget announcement contains a mixture of good and bad news for the drug industry, with non-R&D capital allowances being cut, a reduction in the main corporation tax rate, but a L100.0 million ($194.6 million) increase in partnerships between academic institutions and industry, including the pharmaceutical sector. The Association of the British Pharmaceutical Industry has taken an up-beat position on the budget, welcoming the "boost" to R&D.

Richard Barker, the ABPI's director general, said: "the UK-based pharmaceutical industry spends some L9.0 million a day on researching new and innovative medicines and the Chancellor [of the Exchequer]'s moves to reinforce UK biopharmaceutical R&D can only help the UK in its bid to attract more of this highly-skilled work." He added that "both basic biomedical research and translational medicine - bringing medicines from the lab to the clinic - are crucial elements in UK competitiveness, as Sir David Cooksey highlighted in his report," (Marketletter December 11, 2006). The ABPI also welcomed increases in UK health care spending via the National Health Service, but warned that "additional money should be used to benefit patients."