Jeremy Corbyn and John McDonnell jointly called for the UK to remain “a world leader” in pharmaceuticals research two years ago, it has emerged, a day after a plan by the pair to crack down on tax relief for innovation relating to the industry was unveiled.
An early day motion in April 2014 by Corbyn and McDonnell, then backbenchers, sponsored by three other MPs, called on the government to “protect employment and skills” within UK pharmaceuticals.
It was prompted by a takeover attempt by US drugs company Pfizer of UK-based AstraZeneca. The motion noted worries about British jobs if the takeover went through and asked ministers to “ensure that the UK continues to be a world leader in science and pharmaceuticals research and development”.
This contrasts with comments made in recent days by Corbyn, the Labour leader, and McDonnell, the shadow chancellor, particularly in relation to the Labour leadership candidate Owen Smith, who worked in corporate affairs for Pfizer and Amgen, another pharmaceutical company.
At his leadership campaign launch on Thursday, Corbyn refused to disown remarks made by Diane Abbott, who referred to Smith as a “lobbyist”. Instead, Corbyn argued that medical research “shouldn’t be farmed out to big pharmaceutical companies”.
On Sunday, McDonnell said Labour would seek to reform or scrap a £1bn tax relief designed to promote innovation in companies, including in pharmaceuticals.
The shadow chancellor said the “patent box”, which enables companies to apply a lower rate of corporation tax on patented innovations, was a “potential tax loophole with limited impact on research”.
The timing of the policy announcement was seen as way to highlight Smith’s links to the industry. Corbyn’s comments attracted criticism, with the Labour MP Helen Goodman saying pharmaceuticals was a British industrial success story and it was “totally unrealistic” to suggest that private companies should not take part in research and development.
McDonnell said Corbyn had not suggested nationalising the sector, only that it could be “better managed and more effective”.
A spokesman for Corbyn said there was no contradiction between the 2014 motion and the proposed tax changes.
He said: “Jeremy and John always support the retention of high-quality research jobs in the UK, building on our extraordinary history of scientific research and making full use of our publicly funded research system.
“But with Pfizer having closed in 2011 a world-class research centre, at a cost of over 1,500 jobs, it’s clear that government action is needed to protect our research system and those who work in it. That is why we are supporting closing tax loopholes to fund a major increase in publicly funded research, which can be contracted to private research organisations, including the medical research needed to address pressing medical issues like dementia.”
