Chancellor Rachel Reeves has announced a bold new initiative to accelerate economic growth in the UK, unveiling plans for the Oxford-Cambridge Growth Corridor.
This ambitious project is expected to boost the UK economy by up to £78 billion by 2035, according to industry experts.
In a speech to regional and business leaders, Reeves emphasised that economic growth is the government's top priority under its Plan for Change. She highlighted the UK's "huge potential" and its leadership in cutting-edge fields such as artificial intelligence and life sciences.
Key announcements included the redevelopment of Old Trafford and a review of the Green Book to support public investment decisions nationwide. The Chancellor also outlined a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to collaborate with local leaders on regional growth projects.
Among the major initiatives, the Environment Agency has lifted objections to a new development in Cambridge, paving the way for 4,500 new homes and community spaces. Additionally, the government has secured £7.9 billion in investment for water infrastructure improvements, including nine new reservoirs.
Transport links in the region will see significant upgrades, with funding for East-West Rail services between Oxford and Milton Keynes and the A428 upgrade to reduce journey times. The Chancellor will also prioritise the new Cambridge Cancer Research Hospital, a collaboration between Cambridge University, Addenbrookes Hospital, and Cancer Research UK.
In her speech, the Chancellor said:
“Oxford and Cambridge offer huge economic potential for our nation’s growth prospects.
“Just 66 miles apart these cities are home to two of the best universities in the world two of the most intensive innovation clusters in the world and the area is a hub for globally renowned science and technology firms in life sciences, manufacturing, and AI.
“It has the potential to be Europe’s Silicon Valley. The home of British innovation.
“To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area. But to get from Oxford to Cambridge by train takes two and a half hours.
“There is no way to commute directly from towns like Bedford and Milton Keynes to Cambridge by rail. And there is a lack of affordable housing across the region.
“Oxford and Cambridge are two of the least affordable cities in the UK. In other words, the demand is there but there are far too many supply side constraints on economic growth in the region.”
Reeves also expressed support for new and expanded communities in the Oxford-Cambridge Growth Corridor and a new East Coast Mainline station in Tempsford. Alongside this, she welcomed Cambridge University's proposal for a large-scale innovation hub in the city centre, reinforcing Cambridge's role as a global leader in science and technology.
To further drive growth, a new Growth Commission for Oxford will be established, inspired by the successful Cambridge model. Sir Patrick Vallance will be appointed as the Oxford-Cambridge Growth Corridor Champion to ensure the government's ambitious plans are realised.
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