Chancellor Rachel Reeves today unveiled plans to boost the UK economy by £78m by 2035 with an Oxford-Cambridge growth corridor she wants to rival Silicon Valley.
The government pledged support for infrastructure improvements between the two cities, including investment into AI and life sciences, new transport links, investment of £7.9bn by water companies over five years – including reservoirs in the Fens and Oxfordshire – and the removal of objections by the Environment Agency to building 4,500 homes around Cambridge.
It follows the announcement of government plans to expand three airports in the South: Heathrow, Gatwick and Luton.
The Oxford-Cambridge growth corridor scheme, to be led by Science Minister Sir Patrick Vallance, has been revived after former Prime Minister Boris Johnson shelved it in favour of ‘levelling up’ spending in the North of England.
Sir Patrick said: “The UK has all the ingredients to replicate the success of Silicon Valley or the Boston Cluster but for too long has been constrained by short-termism and a lack of direction.”
View from the North
However the chair of the UK Mayors group, Tracy Brabin – Mayor of West Yorkshire – said: “We know that you can’t get economic growth nationally without doing it in the regions.
“Mayors stand ready to deliver on the growth mission – but we need the right powers and financial freedoms to do that.”
Clare Loveridge, VP and GM of EMEA at Arctic Wolf, chose to headquarter the cybersecurity firm’s operations in Newcastle.
“The Chancellor’s ambitions to create ‘Europe’s Silicon Valley’ between Oxford and Cambridge shows the importance of investing beyond the capital. It reaffirms that UK regions are already thriving technology ecosystems in their own right but need central and local government support to further boost their efforts.
“However, it’s vital the government does not overlook other regional powerhouses if they truly want to unlock UK growth through tech investment. Arctic Wolf chose Newcastle over London as its EMEA headquarters in 2022 due to its growing talent pool, and areas like the North East must not be allowed to be snuffed out through neglect.
“Investing in these regions will be critical to accelerating economic growth by attracting skills and talent to the rest of the UK and diversifying the wider economy. By doing this, it will encourage more firms to invest in cities beyond London, fuelling economic expansion and levelling up the UK.”
‘Northerners can’t be treated as second class citizens’ – Burnham
Katie Gallagher, MD at Manchester Digital and chair of UK Tech Cluster Group, welcomed the Chancellor’s commitment to redevelopment of Old Trafford and wider infrastructure projects.
She added: “However, while the Oxford-Cambridge Growth Corridor is undoubtedly world-class in research and innovation, ensuring its benefits extend across the wider UK must be a priority. We need to see a truly national approach that supports growth in all regions and prevents deepening economic divides.
“With the Chancellor’s commitment to go ‘further and faster,’ we hope this means real urgency in delivering the changes businesses need – including expedited reform of the Apprenticeship Levy under Skills England, which would be a game-changer for tech skills development.
“We look forward to more detail in the Spending Review and call on the government to back regional tech clusters with direct investment that supports innovation, talent, and scale-up growth outside of the South East.”
View from Oxford
Oxford University Innovation’s chief executive Dr Mairi Gibbs welcomed the “focus on boosting the Golden Triangle so it can become the ‘Silicon Valley of Europe’”.
“Universities like Oxford are key institutions in their local economies, driving growth and innovation through world-class research, exceptional teaching, and an expanding mission to translate ideas into economic and societal impact,” she continued.
“Rachel Reeves rightly highlights the critical role of innovation and scaleups in driving Britain’s economic growth. Oxfordshire is a prime example of the transformational potential of university-led ecosystems, with its thriving clusters across life sciences, space technologies, clean energy, quantum computing, autonomous vehicles and AI.
“To ensure the UK remains a global innovation leader, we must tackle key challenges head-on – ensuring robust investment funding to support all stages of company growth, and attracting and retaining top global talent. These steps are crucial to fostering a vibrant innovation economy and keeping fledgling companies rooted here in the UK.
“Oxford University Innovation stands ready to contribute to the Chancellor’s ambitions, and we hope to see sustained investment that bolsters innovation ecosystems and enables inclusive growth across the Golden Triangle and beyond.”
View from Cambridge
Steve Roest, CEO and co-founder of Cambridge-based digital diagnostics startup PocDoc, reflected: “The UK has long been a place for innovation, much of it based in Oxford and Cambridge. They are recognised as global technology and science hubs and have produced some of the world’s most successful companies.
“Cambridge’s thriving startup ecosystem, in particular, was a key reason why we chose to set up PocDoc there and it has been instrumental in our rapid growth over the past four years.
“The Chancellor’s vision is a step in the right direction, but ambition alone won’t build the next wave of global technology giants. To truly compete on the global stage these words must be matched with bold investment, to renew VC confidence in UK startups which is essential to our growth.”