Chancellor backs 'huge potential' for Oxford-Cambridge growth corridor
Rachel Reeves has promised investment between the two cities
Last updated 29th Jan 2025
Chancellor Rachel Reeves has given her backing for housing, transport and investing in the Oxford-Cambridge Growth Corridor.
In a speech today (Wednesday) on how to boost Britain's economy, Ms Reeves said the corridor has "huge potential for the nation's growth prospects".
The Chancellor said the Oxford-Cambridge corridor could become "Europe's Silicon Valley", adding £78 billion to the UK's economy by 2035.
She also backed rail projects such as East West Rail, supporting a new reservoir in the Cambridgeshire Fens and prioritising the building of a cancer research hospital in Cambridge.
Reeves aims to 'unlock potential' of Oxford-Cambridge Arc
Ms Reeves said plans for growth of the Oxford-Cambridge Arc were dropped by the previous Conservative Government in 2021.
But she added that Labour is "not prepared to miss out on the opportunities any longer (and) we are going further and faster to unlock the potential of the Oxford-Cambridge Growth Corridor.
"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," she said.
The Chancellor confirmed that the Environment Agency has lifted its objections over water supply issues in Cambridge to a new development around the city to provide 4,500 new homes and community spaces, such as schools, leisure facilities, office and laboratory space in Cambridge.
Ms Reeves also said £7.9bn of investment into improving water infrastructure in the region, including a new Fens Reservoir which would serve Cambridge.
More funding for the East-West Rail link between Cambridge and Oxford - which would also connect the likes of Bedford and Milton Keynes - was also confirmed by Ms Reeves which she said "will also support vibrant, new and expanding communities along the route".
The Chancellor also promised road upgrades "to help reduce journey times between Milton Keynes and Cambridge".
Cambridge Cancer Research Hospital prioritised
Ms Reeves prioritised building the new Cambridge Cancer Research Hospital, part of the Government's new hospitals programme.
"The Chancellor's announcement is just confirmation of the really important role this this hospital is going to play both in the region and also nationally," Sarah Burge, director of Clinical Integration for Cambridge Cancer Research Hospital, said.
"We think the hospital makes this particular hospital is going to make such a difference because of the unique location in Cambridge."
Ms Reeves has backed plans for a new innovation hub in Cambridge to help accelerate the city's growth within the science and technology sector.
The Conservatives say the Government's Autumn Budget is one of "the biggest barriers to growth" in the UK.