Why the government’s latest funding push is critical to the future of UK pharma
The UK has long punched above its weight in pharmaceuticals and biotechnology, building a global reputation for scientific excellence and early-stage discovery. But as the cost, complexity, and risk of bringing innovation to market continues to rise, leadership can no longer be taken for granted. The need for sustained, targeted investment has become essential for the industry to thrive.
The government’s decision to renew the Biomedical Catalyst, alongside the Life Sciences Innovative Manufacturing Fund (LSIMF), and newly launched Life Sciences Transformational R&D Investment Fund (TRIF) Pilot, has arrived at a pivotal moment. Together, these funds are designed to help strengthen the UK’s R&D base by backing transformational manufacturing and high-risk, high-reward projects – precisely the kind of innovation that often struggles to attract conventional finance.
The government has also created Growth Catalyst – Investor Partnerships, a £100 million fund for SMEs with R&D projects up to £2 million in size and aligned with private investment and Industrial Strategy target sectors. This includes life sciences, providing a further uplift for the sector.
A focused boost for high-impact R&D
What sets the Biomedical Catalyst, LSIMF, and TRIF apart from broader innovation schemes is their focus on genuinely transformational projects; those capable of reshaping markets, accelerating clinical progress, or creating entirely new manufacturing capabilities.
Many of the UK’s most promising life sciences innovations continue to face persistent funding challenges, made worse by an increasingly volatile global trade environment. Without sustained investment, high-potential projects risk stalling long before they can deliver meaningful patient benefit or reach commercial scale.
This is particularly true for capital-intensive technologies such as next-generation cell and gene therapy manufacturing, AI-enabled drug discovery, and low-carbon vaccine platforms — all of which have the potential to strengthen the UK’s global standing in life sciences. By addressing this market failure, targeted funding is an important way to commercialise scientific discoveries, and ensure people actually reap the benefits.
Why timing matters
Despite its strengths, the UK life sciences sector is under growing pressure.
The structure of these funds is important, but so too is their timing. Data from the Association of the British Pharmaceutical Industry (ABPI) shows that UK pharma R&D investment has lagged since 2020. This likely stems from competition intensifying and manufacturing capacity increasingly shifting overseas.
Within this context, the funding represents a strategic intervention to encourage cutting-edge research and development in the UK. It is designed to protect the country’s competitive position at a time when both the US and EU are scaling up their own industrial strategies through a mix of incentives and trade measures.
Beneath the surface, it’s often overlooked that wherever R&D and manufacturing take place will determine where high value jobs, specialist skills, and long-term economic benefits are ultimately created. From that perspective, it’s clear that maintaining an attractive environment for innovation is a national priority.
What it means for industry
From a policy standpoint, the message is clear: the government is backing the full R&D lifecycle, from early discovery through to commercialisation and manufacturing. For both pharmaceutical and biotech companies, this creates a golden opportunity to deepen their UK presence.
The key objective of the LSIMF and TRIF is to strengthen domestic manufacturing resilience. The pandemic exposed just how vulnerable global supply chains are, particularly for advanced therapies and critical healthcare products. By supporting initiatives that expand the UK’s vaccine manufacturing capabilities, advanced therapies and bio-manufactured products, the funds seek to reduce reliance on overseas production and establish more agile, secure supply bases.
The emphasis on regional growth is also significant. While the ‘golden triangle’ remains important, the UK’s life sciences capability extends far beyond it. Targeted investment across the North West, Midlands, Scotland, Wales, and Northern Ireland has the potential to unlock new clusters, attract talent, and support broader economic development too.
Building on previous programmes and initiatives
Previous iterations of the Biomedical Catalyst and LSIMF have helped to unlock substantial private investment, but constrained budgets and tight eligibility criteria meant that many high-quality proposals were left unfunded.
TRIF expands both ambition and scale, while maintaining a competitive application process. Successful bids will need to demonstrate scientific excellence alongside national importance, with a clear line of sight to improved health resilience, stronger supply chains, and measurable economic impact.
Crucially, applicants will need to articulate a compelling “multiplier effect”, showing how public funding will catalyse wider benefits across the life sciences sector, from job creation and skills development to long-term productivity gains.
For organisations considering an application, early preparation will be critical. Strong contenders are likely to:
- Allocate sufficient time to develop a coherent proposal aligned with national priorities such as AI-led discovery, sustainable manufacturing, or advanced therapies.
- Build robust partnerships with universities, NHS organisations, and industry collaborators to strengthen both delivery and credibility.
- Take a joined-up approach to grants and tax incentives, ensuring funding is compliant, complementary, and optimised across the R&D lifecycle.
Part of a wider incentives landscape
TRIF should be viewed as one element of the UK’s broader innovation support framework. For companies already accessing R&D tax relief, there is clear value in considering how grants and tax incentives can work together.
Planning these mechanisms in parallel helps organisations manage compliance risk while making more informed decisions about how to fund different stages of development. For scaling biotech and pharma businesses in particular, this combined approach can improve continuity of research activity and help attract additional private investment.
The path ahead
The launch of TRIF, alongside the renewed Biomedical Catalyst and LSIMF, marks a significant step for the UK life sciences sector. It reflects a growing recognition that world-class discovery alone is not enough. Translating innovation into global impact requires the right infrastructure, skills base, and funding mechanisms.
By providing early, targeted support for groundbreaking scientific discoveries, these funds help bridge the gap from concept to commercialisation. Combined with the UK’s established R&D tax relief regime, they create the conditions for sustained, innovation-led growth. If the UK is serious about maintaining its position as a global life sciences leader, coordinated interventions of this kind will continue to be essential.
About the author
Karim Budabuss is director of grant advisory at ForrestBrown. He works with large businesses, exploring all elements of the innovation toolkit, from R&D tax relief to grant funding. He takes a forward-looking approach, identifying opportunities which align with client projects and objectives. Having previously led decarbonisation grant advisory for a Big Four firm in the UK, Budabuss joined ForrestBrown in 2023. He is a chartered engineer and gained more than five years’ experience as an engineering consultant and project manager for major infrastructure clients before specialising in innovation incentives. He has subsequently helped companies access millions of pounds from grant funding bodies such as Innovate UK, the Department of Energy Security and Net Zero, and Scottish Enterprise in sectors including aerospace, energy, and manufacturing.
