Life sciences sector plan: Gap in funding for businesses looking to scale up says RSM UK
Published on 22/07/2025
Commenting on the government’s life sciences sector plan, Laragh Jeanroy, partner and co-head of life sciences at RSM UK, said:
“It’s encouraging to see the government’s Industrial Strategy puts life sciences at the heart of economic growth for the UK, which in turn, will also deliver more cost-effective outcomes for the NHS – providing a two-fold benefit.
“The action plan sets out more access to funding, including £4bn from the British Business Bank, and dedicated support for businesses with high growth potential. This, combined with plans for improved data resources, faster clinical trials, a focus on international partnerships, streamlined medicine regulation and streamlining procurement routes, are several steps in the right direction. But the question is whether it will be enough to keep companies rooted in the UK and if it will be rolled out quickly enough.
“The UK has previously lost out to promising life sciences businesses due to the gap in funding for companies at later stages in the lifecycle. While the country has strengths in supporting early-stage life sciences businesses, they often end up going overseas to get their hands on significant funding. The additional funding for the sector is great news, but there’s a risk this is too heavily weighted towards start-ups, meaning many businesses looking to scale up lose out again. By providing targeted funding throughout the business lifecycle, this will enable the UK to unlock the full pipeline of potential in the sector.”
Graham Bond, partner and co-head of life sciences at RSM UK, added: “Difficulty in obtaining the necessary funding could mean some businesses resort to layoffs to make up for shortfalls. That said, the war on talent continues to be a huge roadblock in the life sciences sector. It’s likely the industry would’ve wanted to see more targeted initiatives to tackle the issue. In many cases, life sciences businesses are struggling to find leaders with the right skillset. This could in part be due to obtaining financing overseas such as in the US which requires management that understands that specific market.
“UK life sciences businesses are often on the cusp of cutting-edge innovation and groundbreaking discoveries, but in an increasingly competitive market, growth is essential. However, to achieve that, they need the right kind of support. This includes tackling challenges around funding for businesses that want to scale up, along with talent and leadership – otherwise the government’s bold objectives remain out of reach.”
“It’s encouraging to see the government’s Industrial Strategy puts life sciences at the heart of economic growth for the UK, which in turn, will also deliver more cost-effective outcomes for the NHS – providing a two-fold benefit.
“The action plan sets out more access to funding, including £4bn from the British Business Bank, and dedicated support for businesses with high growth potential. This, combined with plans for improved data resources, faster clinical trials, a focus on international partnerships, streamlined medicine regulation and streamlining procurement routes, are several steps in the right direction. But the question is whether it will be enough to keep companies rooted in the UK and if it will be rolled out quickly enough.
“The UK has previously lost out to promising life sciences businesses due to the gap in funding for companies at later stages in the lifecycle. While the country has strengths in supporting early-stage life sciences businesses, they often end up going overseas to get their hands on significant funding. The additional funding for the sector is great news, but there’s a risk this is too heavily weighted towards start-ups, meaning many businesses looking to scale up lose out again. By providing targeted funding throughout the business lifecycle, this will enable the UK to unlock the full pipeline of potential in the sector.”
Graham Bond, partner and co-head of life sciences at RSM UK, added: “Difficulty in obtaining the necessary funding could mean some businesses resort to layoffs to make up for shortfalls. That said, the war on talent continues to be a huge roadblock in the life sciences sector. It’s likely the industry would’ve wanted to see more targeted initiatives to tackle the issue. In many cases, life sciences businesses are struggling to find leaders with the right skillset. This could in part be due to obtaining financing overseas such as in the US which requires management that understands that specific market.
“UK life sciences businesses are often on the cusp of cutting-edge innovation and groundbreaking discoveries, but in an increasingly competitive market, growth is essential. However, to achieve that, they need the right kind of support. This includes tackling challenges around funding for businesses that want to scale up, along with talent and leadership – otherwise the government’s bold objectives remain out of reach.”
