On 30 October, the new Labour government will unveil their first budget. Since taking office it has been clear that their top priority is growing the economy. In July, the Department for Health and Social Care (DHSC) even recast itself as an “economic growth department” – to some confusion and furore.
Meanwhile, I am delighted to have started as the new chief executive for LifeArc, a self-funded medical research charity with a focus on turning pioneering science into medical breakthroughs for patients in areas of underserved need. As I begin my role, I can’t help but wonder what this new laser-focus on growth means for patients who are traditionally the hardest to help. Labour have insisted we can’t just tax and spend our way to growth, so the question becomes one of how we can maximise the productivity of the people and resources we have already.
Government have rightly identified that one answer is to make people healthier: the fewer people off sick, the more are contributing to the economy. But the quickest way to boost growth through health will likely be in the areas where most people are sick – or, put another way, by focusing on the people suffering from the most common diseases.
A 2024 report by Deloitte found that poor mental health costs UK employers £51bn a year. In a separate report, PwC and the Association of the British Pharmaceutical Industry (ABPI) found that better access to just four classes of medicines could unlock £17.9bn in productivity gains.
Neither area has a straightforward solution. But the huge potential gains threaten to overshadow less prominent, higher-risk or commercially uncertain medical challenges. We focus on these underserved conditions at LifeArc: childhood cancers, respiratory conditions, rare diseases, neurodegenerative conditions like motor neurone disease or emerging viral threats.
Even in the case of antimicrobial resistance (AMR) where the global impact is huge and rising, the challenging commercial reality means we have barely seen any new classes of antibiotic treatments in 50 years. It’s not a quick fix. The common denominator is what you might call “market failure”: a cocktail of complexity, cost and uncertainty which make it less attractive to fund studies, start companies or invest in assets in these areas. As a result, there has been little to no progress.
The big challenge for government as they pursue growth is to avoid mirroring these market failures, and missing opportunities for growth in areas where the market is less interested. If the DHSC focuses too narrowly on big wins it would risk echoing the market, which inevitably leaves some patient populations behind. Thankfully, this is avoidable.
First, the DHSC hasn’t given up on its responsibility to serve the public, and they don’t need to. Even science for rarer conditions, despite higher risks and costs, generates economic impact. Rare disease research helps alleviate an immense economic burden on the NHS – possibly costing over £23bn per year* – but also, as we see every day at LifeArc, it generates licenses, patents and “spin-out companies” attracting private investment, creating jobs and driving growth.
Second, science is unpredictable. Even small efforts early on or in “niche” areas can lead to unexpected impact across the board. Earlier this year we collaborated on a first-of-its-kind plan for an NHS Trust to hold the market authorisation (or licence) for a gene therapy, so patients can benefit directly. This NHS-life science partnership could pave the way for similar deals across disease areas.
See also clinical trials: it’s challenging to run trials for small patient populations, but innovating safely in this area, including with regulation, could speed up patient access to quality treatments in all areas. Keep an eye on the new Centre for Acceleration of Rare Disease Trials, a UK-wide collaboration led out of Newcastle, Birmingham, and Belfast.
Third and finally, we can share the risks of market failures. On AMR, LifeArc is now part of two major collaborations – Pathways to Antimicrobial Clinical Efficacy (PACE) and the Fleming Initiative – which aim to drive pioneering science towards patients, tackle complex challenges through partnership, and make progress where for too long there hasn’t been enough.
So, what does growth mean for patients who are traditionally hardest to help? The answer cannot be health versus wealth. LifeArc will keep driving ambitious partnerships to enable pioneering science to create impact for patients. Government must balance their growth focus with the need for innovation in all areas of health. That way, together, we can make life science life changing for everyone.
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