AstraZeneca has warned it could relocate its vaccine manufacturing site from the UK to the U.S. amid a deadlock with the new Labour government over plans to cut state aid, the Financial Times reported on Thursday.

British finance minister Rachel Reeves wants to reduce state provisions to the vaccine centre, which will cut the pledge made by the previous administration from about 90 million pounds to 40 million pounds, the report said, citing sources.

The previous offer included up to 70 million in grants to develop a facility in Speke, Liverpool and 20 million pounds in research and development support from the UK Health Security Agency, per FT.

Manufacturing could take place in India, where the company has produced vaccines in the past, people briefed on the discussions told the newspaper.

An AztraZeneca spokesperson said there are no discussions in the US or India as the company is committed to pursuing the opportunity at Speke and are in constructive talks with the UK government.

"We are in positive discussions with AstraZeneca to support the delivery of this planned investment in Speke," a UK Treasury spokesperson said.

The Sunak administration in March planned to invest 650 million pounds in the Anglo-Swedish drugmaker to boost research, development and manufacturing of vaccines.

(Reporting by Urvi Dugar in Bengaluru; Additional reporting by Chandni Shah and Rhea Rose Abraham in Bengaluru; Editing by Arun Koyyur)