It’s a threat that will send a shiver down the spine of Downing Street and shake the City of London to its core.
Even the notion that AstraZeneca (AZ) – the UK’s most valuable listed company – is thinking of upping sticks and switching its stock market listing to America is a frightening prospect on many levels.
After all, if your biggest firm departs for Wall Street, what message does it send to an already bruised London stock market that has struggled to find its way since the UK’s vote to leave the European Union?
The timing of the report in The Times that Pascal Soriot, the pharmaceutical company’s long-standing chief executive, is considering his own Brexit for the company, will not be lost on anyone.
The Treasury is under severe strain and the Starmer government, apparently focused on compromise given its welfare reform U-turns, bruised.
Ministers have been scrambling to get the support of business back, after a budget tax raid that has added to the cost of employing people in the UK, by launching a series of strategies to demonstrate a growth-led focus.
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Mr Soriot’s reported shift is the culmination of years of frustration over UK tax rates and support for business – though it could also remove a focus on his own remuneration as the highest-paid director of a UK-listed firm.
Image: Pascal Soriot has run AZ since 2012
AZ has its own gripes with Labour.
In January, the company cancelled a planned £450m investment in a vaccine factory on Merseyside, accusing the government of reneging on the previous Conservative administration’s offer of financial aid.
At the same time, it has been rebuilding its presence in the United States.
That speaks to not only a home market snub but also the election of a US president intent on protecting, as he sees it, America-based companies and jobs.
Donald Trump is threatening 25% tariffs on all pharma imports.
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AZ has already promised a $3.5bn (£2.6bn) investment in US manufacturing by the end of 2026.
It has also rejoined the leading US drug lobby group, bolstering its voice in Washington DC.
There are sound reasons for bolstering its US footprint; more than 40% of AZ’s revenues are made in the world’s largest economy. Greater US production would also shield it from any duties imposed by Mr Trump and any MAGA successor.
Since Brexit, complaints among UK stock market constituents have been of low valuations compared to peers (with a weak pound also leaving them vulnerable to takeovers), weaker access to capital and poor appetite for new listings.
Wise, the money transfer firm, became the latest UK name to say that it intends to move its primary listing to the US just last month.
Image: Shein had been exploring a London flotation until it was blocked. Pic: Europa Press via AP
If followed through, it would tread in the footsteps of Flutter Entertainment and the building equipment suppler CRH – just two big names to have already left.
London was snubbed for a listing by its former chip-designing resident ARM back in 2023.
An initial public offering by Shein, the controversial fast fashion firm, had offered the prospect of the biggest flotation for the UK in many years but that was blocked by the Chinese authorities.
Efforts to bolster the City’s appeal, such as through the Financial Conduct Authority’s overhaul of listing rules and the creation of pension megafunds to aid access to capital, have also been boosted in recent months by investors in US companies taking a second look at comparatively low valuations in Europe.
Market analysts have charted a cash spread away from the US as a hedge against an erratic White House.
The Times report suggested that Mr Soriot’s plans were likely to face some opposition from members of the board, in addition to the UK government.
Image: The City of London has faced a series of challenges since Brexit Pic: iStock
AstraZeneca has not commented on the story. Crucially, it did not deny it.
But a government spokesperson said: “Through our forthcoming Life Sciences Sector Plan, we are launching a 10-year mission to harness the life sciences sector to drive long-term economic growth and build a stronger, prevention-focused NHS.
“We have already started delivering on key actions, from investing up to £600m in the Health Data Research Service alongside Wellcome, through to committing over £650m in Genomics England and up to £354m in Our Future Health.
“This is clear evidence of our commitment and confidence in life sciences as a driver of both economic growth and better health outcomes.”
Governments don’t comment on stories such as these, but you can bet your bottom dollar that the departure of your biggest firm by market value is not the message a government laser-focused on growth can afford to allow.
The former BT Group chief Philip Jansen is being lined up as the next chairman of Heathrow Airport as Britain’s biggest aviation hub prepares to deliver an expansion costing close to £50bn.
Sky News has learnt that Mr Jansen, who chairs the FTSE-100 marketing services group WPP, is in advanced talks with Heathrow’s board and shareholders about taking on the role.
If the discussions reach a successful conclusion, sources said an announcement could come within weeks.
Mr Jansen is said to have emerged as the frontrunner from a shortlist of candidates compiled by headhunters at Russell Reynolds Associates.
His experience as the boss of BT, a regulated utility, is said to have been key to his selection as the preferred candidate.
Mr Jansen has also run companies including MyTravel and Worldpay.
The appointment of a successor to Lord Deighton, who has held the post for nine years, comes at a critical time for Heathrow.
In August, the airport submitted a revised expansion plan consisting of a third runway costing £21bn, £12bn for a new terminal and stand capacity, and £15bn to modernise the current airport through the expansion of Terminal 2.
The existing Terminal 3 would ultimately be closed.
Heathrow handled a record 83.9 million passengers in 2024 and is adamant that a third runway is essential to the growth of Britain’s economy, given the volume of exports which pass through the site.
“It has never been more important or urgent to expand Heathrow,” the airport’s chief executive, Thomas Woldbye, said in August.
“We are effectively operating at capacity to the detriment of trade and connectivity.
“With a green light from government and the correct policy support underpinned by a fit for purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country.
“We are uniquely placed to do this for the country; it is time to clear the way for take-off.”
The expansion remains opposed by many airlines alarmed by the prospective increase in charges to use the airport, as well
It has, however, been backed by the government, with Rachel Reeves, the chancellor, saying that a third runway “would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change”.
Heathrow’s next chairman will lead a board dominated by representatives of the airport’s principal shareholders.
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The airport said it would implement the recommendations of a review conducted by former transport secretary Ruth Kelly.
Heathrow’s search for a new chairman comes months after the most significant changes to its ownership structure in years.
Ardian, a French investment group, now owns 32.6% of the company following a series of transactions over the last 12 months.
Saudi Arabia’s Public Investment Fund has also become an investor.
Heathrow has never formally announced Lord Deighton’s intention to step down, other than a disclosure in its annual report in which he wrote:
“In light of the recent changes to the HAHL [Heathrow Airport Holdings Limited] board…the nominations committee…has asked me to extend my appointment for a limited period to help ensure a smooth transition whilst new non-executive shareholder directors become familiar with the business and a new chair is appointed.
“I have therefore agreed to extend my role as chair for a limited period to ensure continuity and stability on the HAHL Board during this period of transition.”
A Heathrow spokesperson declined to comment, while Mr Jansen could not be reached for comment.
The first Post Office Capture conviction has now been formally referred to the Court of Appeal, marking a major milestone in the IT scandal.
The Criminal Cases Review Commission (CCRC) made the decision to refer the case of sub-postmistress Patricia Owen back in July.
Mrs Owen was convicted of theft by a jury in 1998, based on evidence from the faulty IT software Capture.
She was given a suspended prison sentence and fought to clear her name afterwards – but died in 2003.
Capture software was used in 2,500 branches between 1992 and 1999.
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The first Capture conviction was sent for appeal in July
It is the first time a conviction based on Capture – the predecessor to the Horizon system at the centre of the wider Post Office scandal – has reached the Court of Appeal.
It comes after Sky News revealed that a damning report into Capture, which could help overturn convictions, had been unearthed after nearly 30 years.
An investigation found the Post Office knew about the report at the time and continued to prosecute sub-postmasters based on Capture evidence.
Mrs Owen’s family submitted an application to the CCRC in January 2024 – her case has now been referred on the grounds that her prosecution was an “abuse of process”.
A ‘touchstone case’ for victims
Lawyers have said that if Mrs Owen is exonerated posthumously in the Court of Appeal, it may “speed up” the handling of others.
The CCRC is also continuing to investigate more than 30 other “pre-Horizon” convictions.
CCRC chair, Dame Vera Baird, also told Sky News in the summer it could be a “touchstone case” for other victims.
Juliet Shardlow, Mrs Owen’s daughter, has been fighting to clear her mother’s name for years.
She told Sky News the family were “so pleased” her case had finally been referred.
“This has been a very long journey for us as a family and we can now see the light at the end of the tunnel,” she said.
“It’s just sad that mum isn’t here to see it.
“The good news is that once mum’s case is heard in the High Court, it will pave the way for all the other Capture victims.”
The Post Office has previously said it is “determined that past wrongs are put right and continue to support the government’s work in this area as well as fully co-operate with the Criminal Cases Review Commission”.
Britain’s hopes of becoming a critical minerals superpower have been dealt a severe blow after one of its leading companies abandoned its plans to build a rare earths refinery near Hull.
Pensana had pledged to build a £250m refinery on the banks of the Humber, to process rare earths that would have then been used to make magnets for electric cars and wind turbines.
The plant promised to create 126 jobs and was due to receive millions of pounds of government funding.
However, Sky News has learnt that Pensana has decided to scrap the Hull plant and will instead move its refining operations to the US.
Pensana’s chairman, Paul Atherley, said the company had taken the decision after the Trump administration committed to buying rare earths from an American mine, Mountain Pass, at a guaranteed price – something no government in Europe had done.
“That’s repriced the market – and Washington is looking to do more of these deals, moving at an absolute rate of knots,” he said.
“Europe and the UK have been talking about critical minerals for ages. But when the Americans do it, they go big and hard, and make it happen. We don’t; we mostly just talk about it.”
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The decision comes at a crucial juncture in critical minerals and geopolitics. China produces roughly 90% of all finished rare earth metals – exotic elements essential for the manufacture of many technology, energy and military products.
Pensana had been seen as Britain’s answer to the periodic panics about the availability of rare earths. The site at Saltend Chemicals Park was chosen by the government to launch its critical minerals strategy in 2022.
Visiting for the official groundbreaking, the then business and energy secretary Kwasi Kwarteng said: “This incredible facility will be the only one of its kind in Europe and will help secure the resilience of Britain’s supplies into the future.”
He pledged a government grant to support the scheme. That grant was never received because Pensana never built its plant.
Image: Paul Atherley and Kwasi Kwarteng at a groundbreaking ceremony for the plant in July 2022. Pic: Pensana
Mr Atherley said he is optimistic about another project he’s involved with, to bring lithium refining to Teesside through another company, Tees Valley Lithium.
But, he said, rare earth processing is far more complex, energy-intensive and expensive, making it unviable in the UK, for the time being.
The decision is a further blow for Britain’s chemicals industry, which has faced a series of closures in recent months, including that of Vivergo, a biofuels refiner based in the same chemicals park where Pensana planned to locate its refinery.
Producers warn that Britain’s record energy costs – higher than most other leading economies – are stifling its economy and triggering an outflow of businesses.