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The UK new car market declined -7.3% in the first month of 2020, according to figures published by the Society of Motor Manufacturers and Traders (SMMT) on February 5. The SMMT represents more than 800 automotive companies in the UK.
Private and fleet demand was down -13.9% and -2.2%, respectively during the period.
In January 2020, as many as 149,279 vehicles left showrooms, as continued confusion surrounding diesel and clean air zones and ongoing weak consumer and business confidence continue to affect demand, the SMMT data stated.
Registrations of battery-electric cars continue to grow, with a year-on-year uplift of 2,720 units, as plug-in hybrids and hybrids also enjoy record demand.
Industry calls for an extensive package of incentives to accelerated match 2035 zero-emission transport ambitions – including a long-term commitment to the Plug-in Car Grant.
“Consumer confidence is not returning to the market and will not be helped by government’s decision to add further confusion and instability by moving the goalposts on the end of the sale of internal combustion engine cars,” said Mike Hawes, SMMT Chief Executive.
“While ambition is understandable, as we must address climate change and air quality concerns, blanket bans do not help short-term consumer confidence. To be successful, the government must lead the transition with an extensive and appropriately funded package of fiscal incentives, policies and investment to drive demand.”
‘Dirty diesel’
Registrations of new diesel cars fell for the 34th month, by -36.0% to record the weakest performance since 2000 and just 19.8% share of the market, while petrol demand also declined, by -9.5%, SMMT data said.
Interestingly, Hybrid electric cars (HEVs) increased by +20.6%, with 8,941 hitting British roads, and plug-in hybrid electric vehicle (PHEV) demand more than doubled, up +111.1% to 4,788 units.
Battery electric vehicle (BEV) registrations, meanwhile, continued to surge, up 203.9% to 4,054 units and a 2.7% market share.
Combined, alternatively fuelled vehicle registrations reached 11.9% of the market in January – the highest on record, up from 6.8% in the same month last year.
UK life sciences sector contributed £17.6bn GVA in 2021 and supports 126,000 high-skilled jobs.
Inward life sciences FDI fell by 58 per cent from £1,897m in 2021 to £795m in 2023.
Experts warn NHS underinvestment and NICE pricing rules are deterring innovation and patient access.
Investment gap
Britain is seeking to attract new pharmaceutical investment as part of its plan to strengthen the life sciences sector, Chancellor Rachel Reeves said during meetings in Washington this week. “We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters.
Recent ABPI report, ‘Creating the conditions for investment and growth’, The UK’s pharmaceutical industry is integral to both the country’s health and growth missions, contributing £17.6 billion in direct gross value added (GVA) annually and supporting 126,000 high-skilled jobs across the nation. It also invests more in research and development (R&D) than any other sector. Yet inward life sciences foreign direct investment (FDI) fell by 58per cent, from £1,897 million in 2021 to £795 million in 2023, while pharmaceutical R&D investment in the UK lagged behind global growth trends, costing an estimated £1.3 billion in lost investment in 2023 alone.
Richard Torbett, ABPI Chief Executive, noted “The UK can lead globally in medicines and vaccines, unlocking billions in R&D investment and improving patient access but only if barriers are removed and innovation rewarded.”
The UK invests just 9% of healthcare spending in medicines, compared with 17% in Spain, and only 37% of new medicines are made fully available for their licensed indications, compared to 90% in Germany.
Expert reviews
Shailesh Solanki, executive editor of Pharmacy Business, pointed that “The government’s own review shows the sector is underfunded by about £2 billion per year. To make transformation a reality, this gap must be closed with clear plans for investment in people, premises and technology.”
The National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold £20,000 to £30,000 per Quality-Adjusted Life Year (QALY) — has remained unchanged for over two decades, delaying or deterring new medicine launches. Raising it is viewed as vital to attracting foreign investment, expanding patient access, and maintaining the UK’s global standing in life sciences.
Guy Oliver, General Manager for Bristol Myers Squibb UK and Ireland, noted that " the current VPAG rate is leaving UK patients behind other countries, forcing cuts to NHS partnerships, clinical trials, and workforce despite government growth ambitions".
Reeves’ push for reform, supported by the ABPI’s Competitiveness Framework, underlines Britain’s intent to stay a leading hub for pharmaceutical innovation while ensuring NHS patients will gain faster access to new treatments.
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