Government unveils £500 million package for Oxford-Cambridge Growth Corridor
Investment will reopen Cowley rail line.
A new half a billion pound investment package has been announced to deliver new homes, jobs and improved transport links for communities along the Oxford to Cambridge Growth Corridor.
From Thursday 23rd October 2025, the government will release more than £500 million to support the corridor, including the reopening of the Cowley Branch railway line in Oxford and major funding for development in Cambridge. The investment aims to position the region as Europe’s ‘Silicon Valley’, driving growth and innovation.
As part of the package, the Cowley Branch railway line will reopen for passenger services with new stations planned at Littlemore and Cowley. The government says this will support the creation of up to 10,000 new jobs and homes in Oxford. It also forms part of wider plans for the East West Rail project, linking Oxford and Cambridge with Milton Keynes, Bedford and beyond.
Up to £400 million in initial funding will kickstart new homes, infrastructure and expanded business space in Cambridge. The Ellison Institute of Technology has announced a £10 billion ten-year expansion, promising 7,000 jobs and enhanced research opportunities.
The package also includes £15 million for the University of Cambridge Innovation Hub, providing lab space to help science startups grow and compete internationally.
Since 2013, the Oxford-Cambridge corridor has delivered 43,000 jobs and £27.5 billion in investment. The latest funding aims to unlock further growth, and officials say it could generate up to £78 billion in cumulative economic growth by 2035.
Chancellor Rachel Reeves said the government’s ambitions for the area include more affordable housing, improved transport and unlocking private investment. She said, “We have massive ambitions for the Oxford-Cambridge corridor, that’s why we’re reopening the Cowley Branch railway 60 years after it closed, why we’re building more affordable housing and investing in business, and how we’ve been able to unlock £10 billion in private investment.”
Science Minister Lord Vallance called the move “a milestone, not just for the Oxford to Cambridge Corridor, but for the entire country.”
Regional figures from universities, business and the science sector have welcomed the announcement. Andy Williams, Chair of the Supercluster Board, said the package marks “a significant step towards unlocking the full potential of the Oxford–Cambridge Growth Corridor.”
Further comments from Oxford and Cambridge research leaders cited the benefit of new transport links, increased science infrastructure and the role universities will play in providing skills and innovation across the region.
The growth package builds on the Oxford–Cambridge Growth Corridor investment prospectus presented at the recent Regional Investment Summit. British investment opportunities will be highlighted further at the Future Investment Initiative Summit in Saudi Arabia next week.