Rachel Reeves doubles funding for Oxford-Cambridge corridor

Chancellor of the Exchequer Rachel Reeves has announced plans for a Greater Oxford Development Corporation, which would double funding for infrastructure development across the Oxford-Cambridge corridor.

It follows a similar Development Corporation being announced for Greater Cambridge earlier this year. The Chancellor announced £800 million of combined funding for the two development corporations, incorporating the £400 million originally allocated to the Cambridge project.

Giving the annual Mais Lecture to the Bayes Business School in London, Reeves also committed an additional £500 million to supporting transport in Oxford, and pledged to “acquire land through compulsory powers” where “landowners are intransigent, or insist on unreasonable demands” to support the project. This would force landowners to sell property to allow for infrastructure developments. 

The corporation will support infrastructure development in Oxford and surrounding areas, alongside improvements to transport links across the “Oxford-Cambridge Growth Corridor”. According to the BBC, the area between Oxford and Cambridge is one of the only UK regions outside of London that is a net contributor to the UK economy. 

In a press release, Leader of Oxford City Council Susan Brown told Cherwell: “This has the potential to be a game-changer for the city, county and country. A well-designed, central-government-backed development corporation for Greater Oxford should bring both the powers and funding required to deliver the housing, infrastructure, and economic growth at scale that we urgently need.

“We have made it clear in our plan for Local Government Reorganisation that a development corporation would likely be needed to help deliver the 40,000 homes – including 16,000 affordable homes – and 12m sq foot [sic] of commercial space we are proposing as part of a new Greater Oxford Council.”

The University of Oxford has welcomed the proposal. A spokesperson for the university told Cherwell: “Oxfordshire is one of the world’s leading innovation ecosystems, but constraints in transport, utilities and housing are limiting its full potential. A government-led Development Corporation could provide the long-term coordination needed to unlock critical infrastructure, attract private investment and support sustainable, inclusive growth. 

“By bringing together national and local partners, it would help ensure that growth is well-managed and delivers tangible benefits for communities, while strengthening the region’s role in driving innovation and economic growth across the UK.”

The Government has also announced plans for a new “national forest” in the Oxford-Cambridge Corridor, holding a competition for a partner to deliver “nature recovery alongside sustainable urban growth”. It will be the second national forest under the current government, with plans to plant a new forest near Bristol announced last March.