After a historic general election in the UK, with the Conservatives ending up with the lowest number of seats in the party’s history, and Sir Keir Starmer becoming the nation’s Prime Minister, MTI reached out to contacts in the UK MedTech industry to gain insights into what the future looks like for the MedTech landscape in the country. Wes Streeting, MP for Ilford North, was appointed as Secretary of State for Health and Social Care in Starmer’s Cabinet, and Peter Kyle, MP for Hove, was appointed as Secretary of State for Science, Innovation and Technology.
Chris Whitehouse, Director at Whitehouse Communications and an advisor to medtech suppliers, chair of the Urology Trade Association, and governor of the Anscombe Bioethics Centre
Labour’s landslide majority in the UK general election, which saw the party swept into power, should be good news for the medtech sector.
The party’s manifesto committed them to drive innovation and its uptake, saying:
‘The revolution taking place in data and life sciences has the potential to transform our nation’s healthcare. The Covid-19 pandemic showed how a strong mission-driven industrial strategy, involving government partnering with industry and academia, could turn the tide on a pandemic. This is the approach we will take in government. As part of Labour’s life sciences plan, we will develop an NHS innovation and adoption strategy in England. This will include a plan for procurement, giving a clearer route to get products into the NHS coupled with reformed incentive structures to drive innovation and faster regulatory approval for new technology and medicines.’
They now have the votes in parliament, and the mandate from the electorate to deliver on these commitments.
Wes Streeting, Shadow Health Secretary in the run-up to the general election, survived a very close-run electoral outcome as Gaza became a huge issue in his constituency given its high Muslim population, scraping through by just a few hundred votes in the end. Now Secretary of State for Health and Social Care, Streeting will want personally to hit the ground running to deliver on his manifesto commitments.
The early appointment of former Government Chief Scientist, Sir Patrick Vallance, to the House of Lords and as Minister for Science at the Department for Science, Innovation and Technology is an inspired move that will bring his expertise directly into the heart of the new government as a boost for those promoting the benefits of the life sciences sector.
Jonathan Patrick, CEO of Consultant Connect
Waiting lists should be one of the biggest priorities for the incoming Labour government, or we could be looking at a new normal of waiting lists remaining stubbornly high in the future?
The new Government desperately needs to appreciate that the NHS is in a bad position. It’s dangerous to do the opposite because it hides the extent of the problem.
NHS staff, including management have been battered by reducing budgets, and we need some radical changes, rather than more of the same “cut cut cut” mentality.
I think it’s time for a national approach set centrally by NHS England. Decide on the best ideas for impacting waiting lists and fund them centrally. Pay hospitals, GPs and commissioners for rolling out the strategies. And measure, measure, measure to make sure it’s working.
For example, we’ve found that waiting lists for many specialties can be reduced by between a third and a half when consultants “triage” referrals on the waiting list. It’s quick, cheap and can be rolled out centrally. Try that with a couple of other good ideas and you’ll start to see results by September. It will work better than what we’re currently doing.
Philip Campbell, Commercial Director at MEPC Milton Park
With the results in, we welcome the renewed confidence and stability the sector will have in the wake of the election. The new Labour Government has made bold commitments to continue to support the UK’s science and tech capabilities. We want to work closely in partnership with Peter Kyle and his team going forward, to realise the built environment's potential in unlocking economic growth.
Milton Park's ten-day Local Development Order is an example of that collaboration in practice. A streamlined planning process, it has seen a joined-up approach across local government, innovation clusters and the built environment, which allows Milton Park and its occupiers to quickly capitalise on growth opportunities.
When partnerships like those work, they can truly turbocharge the UK's world-leading R&D capabilities and strengthen the demand for flexible laboratory and commercial space across the UK’s innovation ecosystem.
Afshin Attari, Director of Public Sector, Exponential-e
Our new Government’s manifesto talked about the opportunity for transformation, but it was light on detail of how that transformation is going to happen in practice. Labour have said they will commit to using technology potentially AI by removing planning barriers to new datacentres to speed up diagnostic services and improve accuracy which is a forward-thinking approach that could significantly improve healthcare outcomes.
However, the challenge lies within the legacy and burden of dated and unsuitable policies which are stifling this much needed change. The success of using AI in diagnostics and transforming the NHS patient outcomes relies heavily on the availability of skilled personnel, robust infrastructure and a substantial investment in cybersecurity to protect sensitive patient data from breaches and cyberattacks.
Newly elected policy makers will need to unburden the NHS and provide the opportunity to deliver better patient outcomes within the challenging budgetary restraints. Keir Starmer’s Government will now need to engage with credible, agile organisations so they can marry the ideas of their pre-election manifesto with reality.
Claus Andersen, Partner specialising in the life sciences and technology sector at national law firm Freeths
The life sciences industry will certainly be at the heart of the growth strategy for the new government, and it seems that the sector will get a lot of attention over the coming months. Judged by the manifesto the support will include areas such as R&D, clinical trials, unlocking pension funds for investment into the sector, the establishment of a Regulatory Innovation Office to streamline regulation, drive innovation, streamline NHS and a planning reform that is supposed to make it easier to build lab space. However, it remains to be seen just how many of the proposals from the manifesto, which will be carried out.
Santosh Sahu, Founder and CEO of Charac
The priority for the new Government in supporting the UK’s tech and startup sector should be to increase funding in high-growth enterprises with potential. The biggest challenge our startup landscape is facing is the exodus of businesses from the UK to the US, with 24% of UK healthtech SMEs preferring to launch in the US rather than the UK.
The allure of Silicon Valley is in part due to the funding available - US financial schemes through agencies such as DARPA and NASA, have been instrumental in Silicon Valley’s growth. However, we do not just need more money from the Government but from investors. VCs in the US last year invested $170bn in startups, compared to $22bn in the UK. Supporting tax-efficient incentives, such as EIS, SEIS and VCT schemes for investors can drive more investment in our nation’s exciting startups.
Despite the UK seeing the third-most healthtech investment globally, the US is seen as a markedly more attractive market for startups. In addition to funding, this is because of a more supportive regulatory environment - 46% of healthtech companies have removed products from the UK market due to regulatory uncertainty. Healthtech today in the UK is comparable to where fintech was over a decade ago, and it was regulations such as Open Banking and a regulatory sandbox that facilitated the UK becoming a world leader in fintech. This is something the Government has not yet addressed - and with Labour’s calls for a more digital, interconnected NHS, they will need to look at regulations that actually facilitate competition, collaboration, and interoperability to accelerate the UK’s economy, and create a more favourable environment for startups.
Barbara Harpham, Chair of the Medical Technology Group
The next five years will be a pivotal time for medical technology, with scope to both introduce new innovations, and more widely implement those that are already driving down waiting lists, easing pressure on the workforce and placing patients at the centre of their care.
But if the new government is to harness this potential it must implement change from the top down.
Firstly, the MTG has called for procurement processes of proven and effective medical technology to be improved. Our last report on the uptake of medtech found that innovators seeking to bring their products to the health service are still facing a lengthy and complex process.
We recommended the creation of a single pathway that would enhance the weighting given to value within the assessment process for medical technologies, particularly on the value to the patient and longer term savings.
We also called for effective payment mechanisms to support the spread of approved technologies within the NHS - ensuring equitable access to medical technologies for patients across the country.
We look forward to engaging with parliamentarians and NHS leaders, bringing our expertise and passion in helping to solve some of the NHS’s long standing problems through innovative technology. We are excited to get to work.
Naeem Younis, Founder of Strasys, and veteran NHS advisor
Recruiting more doctors and nurses is great, but it’s management that needs to change. In some instances, resources are being frittered away, resulting in 'trapped value’. Much more could be done with what the NHS already has if resources aren’t misdirected.
It's about looking at things differently – focusing on patient rather than bureaucratic needs first. At the moment that often doesn’t happen because we are working with a 75-year-old business model. And some trusts are still presenting the same plans from 2008!
To improve things, we can take cues from brilliant innovation happening across the world where organisations are using fewer resources to deliver greater impact. Everyone knows that waiting lists take time to resolve. But, as well as reducing them, we should be asking not only about their size but why people are on the list, what their challenges are, and could we do things differently?
Currently, Labour aren’t clear about what their long-term game is. Their manifesto is very short-term and full of political soundbites. Keir Starmer needs to recognise what is required if Labour hope to transform the NHS and deliver a health service fit for the future. Because it would be naive to think this can be solved with money alone.
More comment to follow as we receive it
