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UK car dealers suffer worst May since 1952 - SMMT

BRITISH new car sales tumbled by an annual 89 per cent in May, only slightly less negative than April's record 97 per cent collapse, as car dealerships remained shuttered by the government's coronavirus lockdown, industry data showed on Thursday (4).

New registrations of 20,247 units represented the weakest May for sales since 1952, the Society of Motor Manufacturers and Traders (SMMT).


Sales were down 51.4 per cent in the first five months of 2020 but the industry is hopeful that a re-opening of dealer showrooms in England this week will help to spur a recovery.

"Early reports suggest there is good business given the circumstances, although it is far too early to tell how demand will pan out over the coming weeks and months," said Mike Hawes, SMMT chief executive.

"Restarting this market is a crucial first step in driving the recovery of Britain's critical car manufacturers and supply chain, and to supporting the wider economy."

The possibility that Britain's transition out of the European Union ends in December with no new trade deal is also likely to weigh on carmakers, some of whom have highly integrated supply chains with the continent.

Nissan's car manufacturing plant in Sunderland, northern England, which employs 7,000 people, is "unsustainable" if Britain leaves the EU without a trade deal, it said on Wednesday (3).

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UK calls for new pharmaceutical investment to strengthen life sciences

Highlights

  • 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.

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