American healthcare giant Johnson & Johnson has pulled out of a plan to build a new research and development facility in the UK amid concerns about the economy.

It is understood the company, best known for its baby products, had identified a site for its JLabs concept, which helps fledgling pharmaceutical manufacturers to develop their products, just outside Cambridge.

But the plans have been put on hold over concerns that the UK is both politically and economically weak while negotiations to leave the European Union are ongoing.

It is understood that Johnson & Johnson had further concerns about the future of EU funding for pharmaceutical research once the UK leaves the bloc. However, a source close to the deal insisted that the decision was also fuelled by wider strategic concerns.