Government announces major Cambridge housing and transport plans
The Chancellor Rachel Reeves has announced plans today to create an 'Oxford-Cambridge Growth Corridor', which she said could add up to £78billion to the UK economy by 2035. She focused on unlocking new housing and laboratory developments in and around Cambridge, as well as improving transport links between Oxford and Cambridge.
The Chancellor said the Oxford to Cambridge area has the “potential to be Europe’s Silicon Valley”. In a speech in Oxfordshire on Wednesday morning (January 29) Ms Reeves made several announcements to deliver growth in the area.
She highlighted that the Environment Agency has lifted its objection to plans for 4,500 new homes in Waterbeach after work to address water scarcity concerns. Ms Reeves also announced that the Environment Agency has lifted its objection to the Beehive Centre redevelopment in Cambridge, where Railpen has proposed to build office and laboratory space.
READ MORE: Locals frustrated as month-long closure put in place on Cambridge road
READ MORE: Chip giant Arm to expand into new Cambridge technology park building
Funding was also confirmed for East West Rail, the project to create a new rail link between Oxford and Cambridge. Plans for upgrades to the A428 were announced, with the aim of reducing journey times between Milton Keynes and Cambridge.
Ms Reeves said: “Oxford and Cambridge offer huge potential for our nation’s growth prospects. Only 66 miles apart, these cities are home to two of the best universities in the world and the area is a hub for globally renowned science and technology firms. This area has the potential to be Europe’s Silicon Valley.
“To make that a reality we need a systematic approach to attract businesses to come here and to grow here. At the moment it takes two-and-a-half hours to travel between Oxford and Cambridge by train, there is no way to commute directly by rail from places like Bedford and Milton Keynes to Cambridge. And there is a lack of affordable housing right across the region."
The Chancellor added: “In other words, the demand is there but there are far too many supply side constraints on economic growth here, we are going to fix that. The OxCam Arc was initially launched in 2003 over 20 years ago, but the project was then dropped by the previous government in 2021. We are not prepared to miss out on the opportunities any longer, so working with the Deputy Prime Minister, who is already driving forward vital work in the region, we are going further and faster to unlock the potential of the Oxford-Cambridge Growth Corridor.”
Sir Patrick Vallance has been appointed as the Oxford-Cambridge Growth Corridor Champion, and will “provide senior leadership to ensure the government’s ambitions are delivered”. He said: “The UK has all the ingredients to replicate the success of Silicon Valley or the Boston Cluster but for too long has been constrained by short termism and a lack of direction.
“This government’s plan for change will see an end to that defeatism. I look forward to working with local leaders to fulfil the Oxford-Cambridge corridor’s potential by building on its existing strengths in academia, life sciences, semiconductors, AI and green technology amongst others. Together we will build the infrastructure and partnerships needed to join up this region’s academia, investors and business so that we can boost growth, deliver innovations and create new jobs that improve all our lives.”
It was also announced today that the government has agreed to Cambridge Water’s water resource management plan. The government also said it has agreed for water companies to “unlock” £7.9billion of investment for the next five years to improve water infrastructure and "provide the foundation for growth”.
This funding includes the plans for nine new reservoirs across the country, including the Fens Reservoir in Cambridgeshire and the Abingdon Reservoir near Oxford. There was also “support for the development of new and expanded communities” in the Oxford to Cambridge corridor, with plans announced to accelerate the delivery of a new East Coast Mainline station Tempsford.