Life Sciences Sector Plan · first published 15 July 2025
This is the UK government's long-term strategy for the Life Sciences sector, covering pharmaceuticals, MedTech (medical technology), diagnostics, and TechBio (biotechnology fused with data science). It sets out three pillars: world-class R&D, making the UK a better place to start and scale businesses, and driving health innovation through NHS reform. Backed by over £2 billion of government spending-review funding plus additional UKRI (UK Research and Innovation) and NIHR (National Institute for Health and Care Research) money, it contains concrete actions aimed squarely at SMEs — including enhanced Innovate UK (IUK) and NIHR funding routes, a new NHS procurement pathway for MedTech, an 'Innovator Passport', and a dedicated service to help 10–20 high-potential UK companies scale. The plan applies across the UK but some actions (particularly NHS-related ones) are England-only; devolved equivalents are encouraged. It is an active, forward-looking strategy with several deadlines between 2025 and 2035.
WHO THIS APPLIES TO
THE ENKII VIEW
SMEs are named explicitly and repeatedly as central to this plan's success, making this unusually direct in its relevance to small firms. The new NIHR R&D Innovation Catalyst, enhanced IUK Biomedical Catalyst, dedicated scale-up service for 10–20 high-potential companies, and the Rules Based Pathway plus NHS Innovator Passport for MedTech procurement collectively represent a significant lowering of barriers that have historically disadvantaged smaller bidders. The Health Data Research Service (HDRS) and expanded clinical trials infrastructure also create new commercial opportunities — particularly for data-driven and TechBio SMEs — that did not exist at this scale before.
1. Monitor the rollout of the Rules Based Pathway (RBP) and NHS Innovator Passport — when live, use these routes to approach NHS buyers directly rather than navigating legacy procurement processes. Register your interest with the Office for Life Sciences (OLS) now so you are informed when the pathways open.
MedTech SMEs supplying or wanting to supply the NHS — The plan explicitly commits to 'giving industry low-friction access to the NHS through a Rules Based Pathway (RBP) for MedTech and an NHS Innovator Passport, enabling innovative MedTech products to reach patients more quickly' — this is a structural procurement change designed to remove the barriers SMEs currently face.
2. Apply to the enhanced Innovate UK (IUK) Biomedical Catalyst and watch for the new NIHR R&D Innovation Catalyst launch — both are being expanded specifically for SMEs and offer not just funding but connections to testbeds, VC funds, regulators, and procurement routes.
BioTech and MedTech SMEs at translational or early commercial stage — The plan commits to 'substantially enhance the UKRI offer to BioTech and MedTech SMEs' through the Biomedical Catalyst and to introduce 'a new NIHR R&D Innovation Catalyst' providing R&D funding plus 'wraparound support' connecting SMEs to 'venture capital (VC) funds, regulators, procurement processes, and support for commercialisation.'
3. Make contact with the Office for Life Sciences (OLS) and Office for Investment to position your company for the new dedicated scale-up service — only 10–20 companies will be supported, so early visibility matters. Prepare a clear growth narrative showing UK domicile commitment and investment potential.
High-potential UK Life Sciences SMEs seeking to scale — The plan commits to 'establish a dedicated service to support 10-20 high-potential UK companies to scale, invest, and remain domiciled in the UK' working closely with the Office for Investment — places are explicitly limited.
4. Explore eligibility for the Life Sciences Innovative Manufacturing Fund (LSIMF) grants (up to £520 million available). If your planned investment exceeds £250 million, engage OLS about the new bespoke 'Life Sciences Large Investment Portfolio' approach.
Life Sciences SMEs in manufacturing (medicines, MedTech, diagnostics) — The plan delivers 'up to £520 million in grants' via the LSIMF with 'a new, bespoke approach to supporting investments over £250 million' — the largest manufacturing grant programme in UK Life Sciences history.
5. Plan trial timelines around the government's March 2026 target of sub-150-day set-up. Use the forthcoming monthly NHS trust-level trial scorecard to identify the highest-performing NHS sites and prioritise them in your site selection.
Life Sciences SMEs sponsoring or participating in clinical trials — The plan commits to cutting 'set-up time for commercial interventional clinical trials to fewer than 150 days by March 2026' and publishing 'a monthly scorecard for the NHS on trust-level clinical trial performance' — giving SMEs data to make smarter site choices.
6. Prepare now to apply for access to the Health Data Research Service (HDRS) when its minimum viable product launches in 2026. Engage with existing Secure Data Environments (SDEs) in the interim, as the plan commits to improving access to existing national data assets in the current financial year.
Data-driven, AI, or TechBio SMEs — The HDRS will provide 'a unified service across existing data assets' with 'a single point of entry to a breadth of data assets' and go-live for the minimum viable product is 'expected in 2026' — creating a commercially valuable NHS data access route for research-intensive SMEs.
7. Engage with your NHS trust's Net Zero reporting process now, and feed any concerns about measurement burden into the DHSC (Department of Health and Social Care) consultation process — the plan explicitly commits to 'ensuring no undue burden is placed on firms' as it clarifies Net Zero measurement.
All Life Sciences SMEs supplying the NHS — The plan commits to 'work towards appropriate and clarified measurement processes, so that the NHS and firms work in partnership towards net zero while ensuring no undue burden is placed on firms' — SMEs have an open channel to shape how this is implemented.
8. Contact UK Export Finance and the Department for Business and Trade's trade promotion network to access the new dedicated Life Sciences SME export support being developed, including export missions, global exhibitions, and dedicated account management.
Life Sciences SMEs looking to export — The plan commits to 'develop dedicated support for Life Sciences SMEs to export' working with UK Export Finance, which has '£80 billion in finance capacity to support UK exporters', alongside missions, exhibitions, and account management.
9. Engage with the British Business Bank (BBB) to understand eligibility for its expanded Industrial Strategy Growth Capital funds, including direct investments of up to £60 million — and monitor publication of the BBB's VC return data to use as evidence when pitching to private investors.
Life Sciences SMEs with a strong growth story and UK headquarters — The BBB is committing 'an additional £4 billion of Industrial Strategy Growth Capital' to IS-8 sectors including Life Sciences, with capacity for 'direct investments of up to £60 million in strategically important companies', and will publish VC portfolio return data to help build investor confidence.
Every rule below quotes the official document verbatim.
A new Rules Based Pathway (RBP) for MedTech and an NHS 'Innovator Passport' will be introduced to give industry low-friction access to NHS procurement. (MedTech suppliers to the NHS, England; all values)
“giving industry low-friction access to the NHS through a Rules Based Pathway (RBP) for MedTech and an NHS 'Innovator Passport', enabling innovative MedTech products to reach patients more quickly”
Commercial interventional clinical trial set-up times will be cut to fewer than 150 days by March 2026. (Commercial clinical trial sponsors and sites, UK-wide)
“The government will cut bureaucracy and standardise contracts to reduce the set-up time for commercial interventional clinical trials to fewer than 150 days by March 2026.”
The Life Sciences Innovative Manufacturing Fund (LSIMF) will provide up to £520 million in grants, with a new bespoke approach for investments over £250 million. (Life Sciences manufacturers, UK-wide; grant-eligible firms of all sizes)
“government will provide up to £520 million in grants, in addition to a comprehensive and coherent manufacturing support package. This will include a new, bespoke approach to supporting investments over £250 million: the Life Sciences Large Investment Portfolio.”
A new NIHR R&D Innovation Catalyst will provide R&D funding through translational research phases, with wraparound support connecting innovators to testbeds, VC funds, regulators, procurement processes, and commercialisation support. (BioTech and MedTech SMEs, UK-wide)
“Substantially enhance the NIHR offer to BioTech and MedTech SMEs to develop and evaluate high value innovation. Delivered through the introduction of a new NIHR R&D Innovation Catalyst... This will provide R&D funding through the translational phases of research if key milestones are met, and wraparound support will connect innovators to testbeds, venture capital (VC) funds, regulators, procurement processes, and support for commercialisation.”
Innovate UK's Biomedical Catalyst will be evolved to accelerate ideation-to-commercialisation for BioTech and MedTech SMEs, with improved coordination across UKRI and NIHR. (BioTech and MedTech SMEs, UK-wide)
“Substantially enhance the UKRI offer to BioTech and MedTech SMEs. Accelerating the transition from ideation to commercialisation through evolution of the Innovate UK (IUK) Biomedical Catalyst, greater transparency and connectivity across the system to identify and scale game-changing opportunities, and improved coordination of activity across UKRI and the NIHR.”
A dedicated service will be established to support 10–20 high-potential UK Life Sciences companies to scale, attract investment, and remain domiciled in the UK. (High-potential UK Life Sciences SMEs and growth companies, UK-wide)
“Establish a dedicated service to support 10-20 high-potential UK companies to scale, invest, and remain domiciled in the UK.”
The Health Data Research Service (HDRS) will be backed by up to £600 million of investment from government alongside the Wellcome Trust, with a minimum viable product expected in 2026. (Commercial and academic researchers seeking NHS data access, UK-wide; go-live 2026)
“Up to £600 million investment from government alongside the Wellcome Trust, to create the world's most advanced, secure, and AI-ready health data platform.”
The British Business Bank will commit an additional £4 billion of Industrial Strategy Growth Capital to IS-8 sectors including Life Sciences, crowding in £12 billion of private capital, with direct investments of up to £60 million in strategically important companies. (Life Sciences companies of all sizes, UK-wide)
“The Life Sciences sector will benefit as the BBB commits an additional £4 billion of Industrial Strategy Growth Capital to support investment and growth in the government's Industrial Strategy growth-driving sectors (IS-8), crowding in £12 billion of private sector capital. This will include the Bank doubling its investment in new fund managers, cornerstone funds, and building the capacity to make direct investments of up to £60 million in strategically important companies.”
The government will secure at least one major strategic partnership annually with leading Life Sciences companies over the Spending Review period. (Large and high-growth Life Sciences firms, UK-wide; Spending Review lifetime)
“Land at least one major strategic partnership per year over the Spending Review period. Each strategic partnership will demonstrably deliver a significant improvement in health outcomes and economic growth.”
The NHS Net Zero Roadmap implementation will be refined to avoid undue burden on SME suppliers, with clarified measurement processes. (All NHS suppliers including SMEs, England (NHS))
“we will work towards appropriate and clarified measurement processes, so that the NHS and firms work in partnership towards net zero while ensuring no undue burden is placed on firms”
A monthly NHS scorecard for trust-level clinical trial performance will be published, broken down by commercial and academic trials. (Commercial clinical trial sponsors, UK-wide)
“The government will also create full transparency on performance by publishing a monthly scorecard for the NHS on trust-level clinical trial performance, broken down by commercial and academic trials and between interventional trials and observational studies”
UK Export Finance has £80 billion in finance capacity; dedicated Life Sciences SME export support will be developed using this and the government's global trade network. (Life Sciences SMEs seeking to export, UK-wide)
“working closely with UK Export Finance – the UK's world class export credit agency, who have £80 billion in finance capacity to support UK exporters”
Our Future Health will become the largest longitudinal health research cohort, facilitating 50,000 participants in commercial clinical trials per year by 2030, backed by up to £354 million of government support. (Commercial clinical trial sponsors, UK-wide; by 2030)
“Our Future Health will become the largest longitudinal health research cohort and clinical trials resource in the world, with up to 5 million consented participants... Our Future Health will also facilitate 50,000 participants in commercial clinical trials per year by 2030.”
The Health Innovation Network will continue to be empowered to drive innovation and investment, building on £2.6 billion already leveraged, to help innovative companies grow and scale. (Innovative Life Sciences companies including SMEs, England)
“Empower the Health Innovation Network to drive innovation and investment at scale by strengthening support... building on the £2.6 billion already leveraged by the network to date, creating jobs and supporting innovative companies to grow and scale”
This briefing is enkii's interpretation of the official document — the official text always governs.
Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.