Columnist warns UK risks losing tech and life‑sciences crown as private equity and foreign takeovers gather pace

A Daily Mail commentary published after Chancellor Rachel Reeves’ speech to the British Venture Capital Association (BVCA) urged the government to act to halt what the writer described as the “plundering” of UK companies, arguing that a pattern of foreign takeovers and private equity buyouts is eroding Britain’s technological and life‑sciences leadership.

In the column, City commentator Alex Brummer said the BVCA event — intended to showcase the role of venture capital in reviving a “stuck” economy — highlighted a wider problem: a failure to seed, retain and scale high‑tech and AI companies in the UK. He cited a string of high‑profile exits, including Arm Holdings, DeepMind, Darktrace and Inmarsat, and argued that each departure takes intellectual property, patents and expertise developed in British research universities with taxpayer support.

Brummer drew a distinction between the venture capitalists who back early‑stage firms and private equity investors who, he said, buy established businesses, load them with debt and later break them up. He pointed to Advent International’s rapid dismantling of aerospace firm Cobham, supermarket ownership changes at Asda and Morrisons, and the collapse or sale of firms such as Southern Cross and Debenhams as examples of damage attributed to leveraged buyouts.

The column also criticised tax arrangements for private equity partners, specifically the application of carried interest rules that allow some fund managers to pay lower rates than ordinary income tax on a portion of their gains. Brummer said those rules, along with the inflow of foreign investment, had contributed to an environment in which tens of billions of pounds of UK assets were being acquired this year, citing government figures.

Government responses intended to address national‑security concerns include the National Security and Investment Act, which provides ministers powers to intervene in certain transactions. Brummer argued that the measure has not fully prevented strategic assets leaving UK control and urged Chancellor Reeves and the business secretary to review and strengthen protections.

The commentary also highlighted the life‑sciences sector, reporting that US pharmaceutical group Merck cancelled plans for a £1 billion research centre in Britain. Brummer linked that decision to recent policy changes to the pharmaceutical industry’s contribution to the National Health Service, writing that the levy on sales to the NHS has risen from 15.5% to 24.7% and, he said, is on track to reach 32% under current plans. The column said the levy — which raises around £7 billion a year for the NHS — risked deterring investment in UK research, prompting warnings from industry groups.

The Association of the British Pharmaceutical Industry (ABPI) has publicly warned that the UK risks becoming a less attractive location for research and development investment, citing rising costs and an uncertain regulatory and fiscal environment. Brummer noted recent large deals in which British biotech and specialist firms have been acquired by overseas buyers, including Merck’s purchase of Verona and US firm Danaher’s takeover of Abcam.

He also pointed to corporate departures in vaccines and manufacturing, citing AstraZeneca’s decision not to proceed with a Liverpool vaccine plant and its plans to invest heavily in the United States, as evidence that the UK may be losing out on future capital and production.

Industry figures, trade bodies and some government officials have previously argued that inward investment and private capital are vital to growth and scaling companies. Supporters of private equity counter that buyouts can rescue struggling businesses, bring expertise and enable firms to expand. Critics respond that short‑term returns and leverage can undermine long‑term industrial capabilities.

At the BVCA event, Chancellor Reeves emphasised the government’s desire to boost investment into high‑growth firms and to strengthen Britain’s capital markets. Her speech was positioned as part of an effort to invigorate listing and fundraising activity in London and to address barriers that stop companies from staying and scaling in the UK.

The commentary concluded by urging faster and more decisive government action to protect strategic capabilities, tighten rules around takeovers where national security or research capacity may be affected, and reassess tax arrangements seen to favour private equity managers. The column framed those moves as necessary to prevent further erosion of the UK’s science‑based industries and to ensure long‑term economic resilience.

Representatives of the Treasury, the Department for Business and the BVCA did not provide new comment to this story. The BVCA has previously said its members play an important role in financing innovation, while the government has pointed to recent interventions under the National Security and Investment Act as evidence of increased scrutiny over foreign and private capital transactions.