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The UK government is to turbocharge a strategic plan to create a British rival to the Silicon Valley around Oxford and Cambridge, the latest sign that Labor is focusing on high-productivity areas of the economy in its push for growth.
The decision to back the Oxford-Cambridge arch marks a return to political favor for a scheme that was shelved three years ago after then-Tory Prime Minister Boris Johnson prioritized poorer regions.
Science secretary Peter Kyle on Monday said the government wanted to double the economic output of the science-rich region that lies between two of Britain’s top universities, with the manufacturing and logistics hub of Milton Keynes in the middle.
“The Oxford-Cambridge arc is already an engine of prosperity, but we can go even further. We are determined to unleash research and development as a driving force in our mission to grow the economy in every corner of the country,” he said. .
Fast-tracking the scheme to rival the science clusters of Boston and San Francisco in the US would add £78 billion of GDP to the UK economy by 2035, according to research by public consultancy First for the Board of the Oxford-Cambridge SuperCluster, which includes industry and industry and University Leaders.
The announcement, which comes ahead of UK Chancellor Rachel Reeves’ “growth” speech this week, was welcomed by the Vice-Chancellors of Oxford and Cambridge Universities, as well as senior executives at pharmaceutical company AstraZeneca UK and computer chip designers.
SuperCluster Board Chairman Andy Williams said its members, “which include some of the biggest investors in the world, see tremendous potential and in this commitment it is quite clear that the government does too”.
The original plan was created in 2017 by the National Infrastructure Commission and was a top priority of successive Conservative governments, most recently returning to favor under Rishi Sunak.
It promised to provide an extra 1 million homes and 700,000 jobs, but was met with a political backlash from local groups who opposed the new developments.
However, Sir Keir Starmer, the Prime Minister, has signaled that he is prepared to face such opposition, pledging to build 1.5MN homes in this parliament and “put builders first” to boost the economy stuck.
Mike Davey, Labor leader of Cambridge City Council, welcomed the arch support but warned it would require investment in more affordable homes as well as improved water and transport infrastructure.
“The government needs to learn from the mistakes the Tories made in the bow – we need to bring local communities with us and they need to see the benefits,” he said.
No new money was announced for the bow on Monday. But the government committed in the October budget to deliver the East West rail project which will revive the “varsity” railway, which linked Oxford and Cambridge until it closed in 1967.
While praising ministers’ ambition for the ARC, senior leaders said the plan will require infrastructure improvements alongside reforms to provide faster planning permission, easier access to global workers and capital.
Both Oxford and Cambridge have suffered from water and electricity shortages that have led to housing and science developments being temporarily blocked by environmental regulators.
Richard O’Boyle, chief executive of Pioneer Group, which runs life sciences campuses, said Oxcam could be a major growth driver “with the right support”, but “to unlock its full potential, we we need investment, better infrastructure and policies that support growth”.
In a sign of development difficulties in the area, a decision on whether to move a sewage plant to North Cambridge was delayed for a second time in January, effectively freezing a 5,600-home development.
Nick Pettit, senior partner at Bidwells Real Estate Adviser, said it was a sign of the strength of interest in Oxcam that global investors were drawn to the region despite planning and procurement difficulties.
“The reality is that small policy changes are all it takes for this region to make a big difference in its contribution to national growth,” he added.
The government has said it is committed to investing in regional growth as part of its industrial strategy, although offering such high-profile support to Oxford and Cambridge risks fueling accusations that the South of England is being favored in the push for growth.
However, Dan Thorp, chief executive of advocacy group Cambridge Forward, said Oxcam’s support was not “a zero-sum game” and that Cambridge was working with other groups, such as the Northern Powerhouse Partnership, to create “groups related” that shared in growth
“The Big Bang benefit to the government’s growth mission can come from linking what happens at Oxcam to the rest of the UK,” he added.
