Chancellor backs Luton Airport expansion, but plans still unclear
Chancellor Rachel Reeves announced plans for growth at a speech in Oxford this morning, including infrastructure in the three counties
Last updated 29th Jan 2025
The Chancellor, Rachel Reeves, this morning (January 29) announced a range of steps going 'further and faster' to 'kick start the economy', with key infrastructure projects in the East of England.
A corridor for growth between Oxford, where her speech was given, and Cambridge was announced, encompassing key towns and cities in Buckinghamshire and Bedfordshire.
Notably, those along the planned East West Rail route were given a special mention; Milton Keynes and Bedford.
The Chancellor described her plans to transform this corridor into Europe's very own Silicon Valley.
She said: "We are funding the transport links needed to make the Oxford-Cambridge growth corridor a success, including East West Rail, with new services between Oxford and Milton Keynes starting this year.
"And road upgrades to reduce journey times between MK and Cambridge."
Luton Airport expansion
While an announcement regarding the expansion of Luton Airport was rumoured, the Chancellor didn't put those to bed.
Instead, Rachel Reeves detailed plans for the construction of a third runway at Heathrow Airport, and backed a potential expansion of Luton Airport.
The Bedfordshire airport's plans for expansion are still under review and yet to be approved, however its target is to raise the limit on its annual number of passengers from 18 million to 32 million.
This would involve expanding its existing terminal and building a second terminal.
As it stands, the scheme would not require a new runway or flight paths.
Transport Secretary Heidi Alexander is expected to make a final decision on whether to approve the scheme by April 3.
East West Rail
The Chancellor, in her speech, heavily referenced the rail plans linking towns and cities in her 'corridor for growth'.
East West Rail involves boosting railway links between Oxford and Cambridge with new and upgraded lines.
The scheme has three stages, with initial services from Oxford to Bletchley and Milton Keynes scheduled to begin this year.
The other two stages are reliant on Government funding and approval.
These involve services being extended from Oxford to Bedford, and then from Oxford to Cambridge via Bedford and Bletchley.
A new railway station at Tempsford, in Bedfordshire, could further be built, providing connections between the East Coast Main Line and East West Rail.
Transport Secretary, Heidi Alexander said: "Well connected communities are a cornerstone for growth.
"East West Rail will not only provide better links and lasting benefits to Oxford and Cambridge, but to all the surrounding areas.
"I’m also delighted to announce a brand new station at Tempsford, which will be game changing for the region – allowing a new community and businesses to grow, unlocking faster and smoother access to opportunities, and delivering on the Government’s Plan for Change."