In the early 1970s it becomes clear that the world-renowned Lister Institute is not holding its own financially.

The Lister Institute of Preventative Medicine Chelsea laboratories are forced to close due to repeated annual deficits and failure to secure adequate government support.

Astonishingly, the government stopped funding the only research facility that could have developed heat-treatment and a screening test for Non-A Non-B hepatitis by as early as 1978.

In a DHSS letter of 2nd February 1977, a viability study of the world-renowned Lister Institute is discussed. The letter states that a conclusion has been reached:

"the Department should not on financial grounds make a loan or grant to [Lister?] and that the possible consequences of [Lister?] ceasing to produce sera and vaccines should be accepted". (Paragraph 1, lines 3-5)

"Nevertheless we should be faced with very real difficulties if [Lister?] were to be wound up" (Line 4 of paragraph 3)

"Any disruption in production during this interim period, which could well arise if we were forced to act too quickly, would probably cause clinicians to fall back on commercial suppliers of blood products, thus adding to the total cost of the NHS as well as inducing a setback for Ministers' policy of UK self-sufficiency in blood products production" (Last 6 lines of paragraph 3)

Note: This situation ended up with the Lister Institute's Elstree Lab closing in 1978 due to repeated annual deficits coupled with the need for major expenditure in order to modernise the production facilities. The Lister Institute was well-poised to possibly go on to develop heat-treatment or even a test for NANBH by as early as 1978 - if only the Government had made that loan or grant.

Lister Institute Laboratory at Elstree closes due to repeated annual deficits coupled with the need for major expenditure in order to modernise the production facilities.

The Institutes’ list of achievements are unprecedented in the field of medical science.