Decision details

Cabinet received a report outlining the decision of GSK intending to relocate its Stevenage research and development operations to Cambridge by 2029, affecting approximately 1,800 roles in Stevenage.  It was reported that initial analysis indicated the direct and locally retained economic impact could be around £80 million in lost Gross Value Added (GVA) each year, before wider supply-chain and employee-spending effects were included.

The Leader of the Council advised that the announcement by GSK represented a significant development for Stevenage, giving rise to understandable concerns for employees, their families, local businesses and the wider community.  He recognised GSK's longstanding presence in the town and its contribution to science, innovation and high-skilled employment, and acknowledged the challenges of the relocation.  The Leader of the Council also commented on the need for a positive, proactive response to help create jobs and opportunities for the local community. 

Following discussion, the importance of a coordinated response to the proposed changes was emphasised, noting that the proposed task force would bring together Government, regional partners, businesses, education providers and other stakeholders to ensure Stevenage’s interests were effectively represented.  Members further highlighted the need to support affected employees, families and businesses, and stressed that access to appropriate support, skills development, employment opportunities and retraining pathways should be central to the response.

It was RESOLVED:

1.    That GSK’s announcement to relocate its research and development operations from Stevenage to Cambridge by 2029 and the potential economic implications for Stevenage and the wider Hertfordshire economy be noted.

2.    That the action taken by the Council following the announcement, including engagement with GSK, Government, Hertfordshire partners, businesses and other stakeholders to understand the implications and maintain confidence in Stevenage’s economy be noted.

3.    That delegated authority be granted to the Strategic Director, having consulted with the Leader of the Council and the Portfolio Holder for Economy, Skills and Young People, to establish a partnership Taskforce, to oversee the response to GSK’s announcement.

4.    That continued engagement with Government to highlight the national and regional significance of the economic impact and to explore the investment, infrastructure, policy and other interventions that could support the future of the site and the wider Stevenage economy be endorsed.

5.    That an allocation of up to £440,000 from the General Fund, comprising £350,000 in 2026/27 and £90,000 in 2027/28 be approved. This is to enable the Council to work with partners to respond swiftly and effectively given the importance of this issue. Specifically, to provide dedicated project capacity, specialist advice, evidence and market analysis and the development of the Implementation Plan, appropriate planning levers and seeking any further external funding opportunities.

6.    That the work with other public sector partners including Hertfordshire Futures and government to support the task group and help prepare an implementation plan be noted, and that options to seek external contributions from other partners as appropriate be considered.

7.    That owing to the scale and strategic significance of the potential economic impact arising from GSK’s proposed withdrawal from Stevenage, that the associated risks be added to the Council’s Strategic Risk Register.

8.    That a further report be brought to Cabinet by June 2027 to seek approval of an Implementation Plan and identify any further approvals or funding required.