AstraZeneca has scrapped plans to invest £450m in expanding a vaccine manufacturing plant in Merseyside, blaming a reduction in government support.

The pharmaceutical giant has announced its decision just two days after Chancellor Rachel Reeves set out Labour’s plan to go “further and faster” to boost economic growth.

AstraZeneca said that after “protracted” talks, a number of factors influenced the move, including “the timing and reduction of the final offer compared to the previous government’s proposal”.

The Treasury has been contacted for comment.

AstraZeneca said: “The site will continue to produce and supply our flu vaccine, for patients in the UK and around the world.”

It added that none of the current jobs at the Speke site would be affected.

The Labour government has made boosting growth its key objective and has been trying to encourage more firms to invest in the UK.

On Wednesday, Reeves named AstraZeneca as one of the “great companies” as she set out her plans to grow the economy, saying she was “determined to make Britain the best place in the world to invest”.

Plans to expand AstraZeneca’s site at Speke had been set out by the previous Conservative government in last March’s Budget by Reeves’ predecessor, Jeremy Hunt.

There have been subsequent reports that talks between the company and the Labour government had run into delays.

AstraZeneca also said the amount of support offered did not match the level put forward by the previous government.