Written submission from Elekta Limited (PRO0131)

Introduction to Elekta

Elekta is a medical technology company which aims to improve, prolong, and save lives through clinical solutions for treating cancer and brain disorders. Elekta develops clinical treatment solutions for radiation therapy and radiosurgery, as well as workflow-enhancing software systems, across the spectrum of cancer care. Elekta is a leader in clinical solutions for image guided radiation therapy and stereotactic radiosurgery, giving oncologists and neurosurgeons an unmatched capability to treat tumours and functional targets with ultra-high precision while sparing healthy tissue. Since 2018 Elekta also offers MR-guided radiation therapy solutions, combining a linear accelerator with magnetic resonance imaging. Elekta’s treatment solutions and oncology software portfolios are designed to enhance the delivery of radiation therapy, radiosurgery, and brachytherapy, and to drive cost efficiency in clinical workflows. At the end of 2024/25 Elekta had an installed base of approximately 7,150 devices. As a leader in precision radiation therapy, Elekta is committed to ensuring every patient has access to the best cancer care possible. We openly collaborate with customers all over the world to advance sustainable, outcome-driven, and cost-efficient solutions to meet evolving patient needs, improve lives, and bring hope to everyone dealing with cancer. In 2022 we celebrated our 50-year anniversary since Elekta was founded.

We have come a long way in 50 years, having grown from a small company specializing in stereotactic radiosurgery, to a broad global radiation therapy leader with sales in more than 120 countries, around 40 of which we have direct representation. Elekta has grown to become essential to cancer care globally, as the only major company fully focused on radiotherapy and neurosurgery. To us, it's personal, and our global team of 4,500 employees combine passion, science, and imagination to profoundly change cancer care.

Elekta’s largest campus is within the Manor Royal Business District in Crawley, West Sussex employing 850 staff across its factory, research and development buildings and its modern ‘Cornerstone’ office building which houses our ‘Customer Experience Centre’. Elekta Ltd have been an integral part of the Gatwick Diamond Economy for over 50 years with Elekta Leaders sitting on the Boards of both The Gatwick Diamond Business and Manor Royal Business Districts.

International Growth

To drive growth and customer satisfaction, we have deployed a strategy of having more direct market presence and over the last year we opened new offices in the Philippines, Indonesia, Egypt, and Thailand. We have partnered up with global pharmaceutical companies, and have initiated truly inspiring programmes with our customers, enabling more personalized and precise care, thanks to patient reporting and AI monitoring of side effects. Access to the best cancer care is also driven by our strategic pillar of partner integration across the cancer care ecosystem. Elekta is the only company of scale focusing exclusively on radiation therapy, and we are also committed to partnership both with healthcare companies and customers across the Globe. In March 2023, Elekta signed a joint venture with China National Pharmaceutical Group Co., Ltd. (Sinopharm), to increase the adoption of radiation therapy in so-called lower-tier cities, where around 70 percent of the population resides.

Across the last 3 years Elekta drove adoption across the globe by expanding the number of people who have access to radiation therapy by 300 million by the end of the fiscal year 2024/25. This was achieved by adding 825 linacs (radiation treatment devices) to underserved market where people lacked access to radiation therapy.

Global Headwinds

Like many global organisations Elekta has faced unprecedented challenges over the last 36 months. For us it was the perfect storm: Electronic Supply Chain Shortages, Covid-19, Brexit, Global Logistics Problems, High Fuel/Energy Costs, Ukraine/Russia Conflict.

Our well-established business continuity planning paid off, and we implemented our strategy quickly and efficiently. We reviewed and updated our operational systems, tools, processes, and intelligence that supported our ‘Plan – Deliver – Recover’ circular service chain. We were pro-active with the use of intelligent diagnostics using the most up to date factual global data to drive decisions. We ensured that we always had end-to-end service visibility enabling us to improve the customer expectation and experience. We put in place outcome metrics and a clear reporting structure to drive escalation and exception orchestration across the business.

Business Confidence

•              What factors most affect confidence in the UK as a place to invest and expand?

We believe the most important two factors affecting confidence are ‘Government Policy’ and ‘Financial Stability’.

•              How are communication and engagement between government, business, and the City influencing sentiment?

We feel that currently both Business and the City are well engaged with Government in shaping Policy and are also engaged in good consultation on Policy impacts.

•              What role do stability, predictability, and long-term planning play in shaping business decisions?

For Elekta stability is the largest and most important factor for business decision to continue to invest within the UK.

Pro-Growth Reforms and Investment

•              Which areas of reform—planning, infrastructure, regulation, skills—are most urgent for unlocking growth?

Skills is a top priority for us. We need more STEM graduates to stop investment leaving the UK. Poor infrastructure (re-congestion) and cargo availability are currently problematic with regard speed of export of our manufactured goods and import of critical supply chain.

•              What role will the Industrial Strategy play in driving growth?

We don’t believe currently that the UK will thrive in industrial growth – we will instead thrive in services. Our moving from EEC made the UK growing as an Industrial nation unattractive from both labour, skills and free movement in EEC.

•              How can growth be translated into higher productivity and achieving the Government’s ‘milestone’ of raising living standards in every part of the UK?

We strongly believe that growth can only be achieved by increased earnings of the employee and incentive linked pay/ bonus linked to growth and productivity.

Costs of Doing Business

•              How are tax, employment costs, and regulatory obligations shaping firms’ ability to grow?

Small and medium business have struggled with recent changes in minimum wage and NI contributions, whilst additional administrative regulation burden has stopped growth and added cost. Whilst large businesses can absorb these costs much better, this has and will continue to lead to less employees as companies reduce to absorb increased costs.

•              What policy options could reduce the cumulative burden on business while maintaining fiscal sustainability?

Reduction on NI, less policy on the reporting of sustainability, negotiation leading to the reversing of US tariffs.

•              What lessons should be learned from past Budgets in balancing costs against growth incentives?

That excessive burden on medium, small business and to some extent large business, results in less growth.

Productivity Growth

•              What are the main drivers of the UK’s productivity challenge?

Cost of doing business in UK v ‘Rest of The World’ and employee skills availability.

•              How can the Government and business better align to improve productivity in the Industrial Strategy’s eight growth-driving sectors?

Work together better than currently with other departments for example the DTI.

•              What role should technology, skills, and innovation policy play in boosting long-term output per worker?

Huge role played in tech, skills and innovation in output per worker. A.I. will provide this boost but investment is needed now to increase productivity over next few years.

•              How can productivity gains be shared fairly across the economy?

Reduction of consumer retail pricing, increase of minimum wage.

The Role of Regions and Cities

•              How can regional and city leadership be further empowered to drive local growth?

Empower decision making at these levels and reduce need for central decision meeting.

•              How will the Government’s housebuilding and infrastructure investment plans boost regional economies?

That will see a temporary boost in the building industry, but long term will provide much needed infrastructure for local long-term employment – required for communities to prosper.

•              What lessons can be learned from international models of regional economic development?

No Comment.

Better Regulation

•              Is the current regulatory environment helping or hindering growth and investment?

We are Neutral on this – our regulatory environment is better than some , more extensive than others.

•              What impact will the Government’s Regulatory Action Plan have on reducing unnecessary costs and delays for businesses?

No comment.

•              What opportunities exist to streamline or consolidate regulators to improve efficiency?

We need to work together more efficiently - there is far too much overlap. Having to deal with different departments is inefficient and could be improved with the use of technology to better interaction.

Risks and International Context

•              How should the UK position itself in relation to international competition, including the US, EU and emerging economies?

Given our exit from EEC, we have lost competitive advantage. However, the UK is still observed as a major player and British brand of quality should be capitalized upon.

Government Strategy and Coordination

•              How coherent and effective are current government structures for coordinating pro-growth policy?

Somewhat effective. Good efforts to improve. We see the DTI heavily engaged in coordination activity and this is much improved. Much better visibility and help is required and needed from HM Customs and Excise with regard imports and exports.

Contributors to the above:

• Bridie Norman – Senior Vice President Business Line Linac Solutions & Managing Director for Elekta Limited.

• Tim Rose – Vice President Global Facilities Management for Elekta

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