AstraZeneca’s Potential U.S. Relocation: A “Devastating Blow” to the London Stock Exchange, Warns Norman Lamont
Former Tory Chancellor Norman Lamont has issued a stark warning: if AstraZeneca decides to leave the London Stock Exchange, the loss could be a “devastating blow” for the city’s financial prowess.
Why the Question is Hot
- AstraZeneca’s market cap tops £160 billion – the biggest firm on the FTSE 100.
- Rumours that the company could redomicile to the U.S. threaten London’s reputation as a global financial hub.
- Earlier this year, the firm pulled £450 m from a Merseyside vaccine plant after the government failed to match a Tory‑backed support offer.
Lamont’s Key Points
Lamont’s message to Labour Minister Rachel Reeves and the UK Treasury is clear: pharmaceutical giants shouldn’t be treated as mere “cash cows.” They should be seen as valuable investments that drive research, development, and jobs.
He calls out the lack of a life‑sciences review and the government’s refusal to support the Liverpool vaccine plant. Lamont also notes a “stealth” increase in the rebate payable by pharma companies, from 15 % to 22 %.
“If we want to retain listings, maintain R&D, and keep jobs, we must have a solid strategy for these companies,” Lamont said.
Responses from the Treasury
Lord Livermore acknowledges the need for a supportive environment for life sciences. He says the government will soon announce a comprehensive life‑sciences sector plan and aims to keep high‑growth companies “listing and staying” in the UK.
Meanwhile, Baroness Neville‑Rolfe warns that a loss of AstraZeneca could wipe out a £160 billion market segment, threaten jobs, and erode tax revenues. She asks for concrete changes to make the UK investment climate more competitive.
Livermore admits that UK equity markets face challenges, but a firm’s choice to list elsewhere is “not unusual.” He promises efforts to improve the market’s attractiveness, while remaining tight-lipped about specifics.
Takeaway
The UK’s global financial standing is on the line. Keeping a giant like AstraZeneca in London requires more than politicians’ promises; it demands genuine support for the life‑science sector, a clear strategy, and tangible incentives. Failure to do so could mean the city loses a key financial muscle—and that’s a bad way to start the new decade.
