UK life sciences investment up but health outcomes under strain

UK life sciences investment surges to record levels as healthy life expectancy falls to its lowest, according to new analysis by the Academy.

A major new assessment by the Academy of Medical Sciences finds that the UK remains one of the world’s leading environments for medical science, but highlights that some of the foundations of this success are fragile and the country is not yet converting its research strengths into better health outcomes.

The framework, Measuring what matters 2026: an annual assessment of UK medical science, brings together evidence across seven domains to provide a high-level picture of the health of the UK medical sciences ecosystem. Drawing on national data from sources including the Office for National Statistics, the OECD and the NHS, it categorises trajectories as strong, developing or concerning. The Academy intends to publish the assessment annually, creating a consistent way to track progress over time and identify areas where further action is needed.

It is published as a new Prime Minister prepares to set priorities for health, science and economic growth. The Academy argues that medical science is one of the UK’s most important levers for improving both national health and prosperity, but only if the pressures identified in this assessment are addressed.

The analysis highlights significant strengths across UK medical science. UK health research remains internationally competitive, with 45% of submissions to the main health and life sciences panel in the latest Research Excellence Framework rated as world-leading. The UK life sciences industry generated £146.9 billion in turnover in 2023/24 and employed almost 360,000 people. Inward investment rose by 164% from 2023 to 2024, reaching £2.1 billion and lifting the UK from eighth to fourth among comparator countries.

However, the assessment also identifies vulnerabilities across the medical sciences ecosystem. While the UK continues to benefit from world-class research, innovation and investment, some of the foundations that underpin future success are showing signs of strain. The clinical academic workforce - the doctors and researchers who bridge NHS patient care and university research - is both ageing and shrinking, while universities continue to recover only around two-thirds of the costs of their research activity. Targeted public investment in health R&D remains comparatively low, and clinical research delivery faces ongoing challenges.

Healthy life expectancy has fallen to its lowest recorded level, health inequalities persist and economic inactivity due to ill health continues to rise – even as the UK’s life sciences sector posts record investment and growth. The analysis indicates that this widening gap between scientific strength and population health is one of the most pressing challenges facing the new government. The assessment draws on publicly available national datasets to evaluate the trajectory, data and policy environment across seven domains:

1. Creating a healthier population and reducing health inequalities
2. Detecting and preventing ill health earlier
3. Delivering world-class health research
4. Strengthening capacity to accelerate the development of new treatments
5. Building public trust and engagement in medical science
6. Developing a workforce fit for the future
7. Supporting economic growth through medical science.

The UK has a remarkable foundation in medical science. Our research is among the best in the world, and our life sciences industry is growing strongly. However, this excellence is not yet delivering better health outcomes for enough people, and too much potential goes unrealised between discovery and patient benefit. 

If medical science is going to deliver both healthier lives and a stronger economy, we need to measure how the whole system is performing and act on what the evidence shows. This first assessment is a step towards doing this, year on year.

Professor Sir Andrew Morris CBE FRSE PMedSci, President, Academy of Medical Sciences

The data tells us where UK medical science is strong and where it is under strain. The clinical academic workforce is one example – the doctors and researchers who bridge NHS patient care and university research are ageing and shrinking, even as we need them most. 

We want to work with government, the NHS, universities, charities and industry to build a shared and honest picture of how the system is performing, so that investment and effort go where they can do the most good. Better measurement is how we turn good intentions into better outcomes for patients and for the economy.

Rosalind Campion, CEO, Academy of Medical Sciences

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