At today’s Innovate Cambridge Conference, the government announced a bold package of investment to accelerate growth across the Oxford–Cambridge Growth Corridor – with more jobs, homes and better transport links at its heart.

Over £500 million has been committed to deliver new housing, infrastructure and business space across the Oxford–Cambridge Growth Corridor, reinforcing its position as the UK’s most dynamic hub for science, innovation and sustainable growth.

The funding includes the reopening of the Cowley rail line in Oxford – connecting communities and supporting the creation of up to 10,000 new jobs and homes – alongside major investment to unlock development in Cambridge through new housing, infrastructure and business expansion.

These announcements mark another major step in turning the region into Europe’s Silicon Valley – a globally competitive corridor where innovation, skills and investment come together to power the UK’s economic future.

“A blueprint for inclusive, sustainable growth”

Professor Roderick Watkins, Vice Chancellor of Anglia Ruskin University and Chair of the Arc Universities Group, welcomed the announcement:

“We are delighted by this announcement, which we see as a blueprint for universities, government and private investment working together to drive inclusive, sustainable growth.Universities have long played a vital role in the success of this region. What sets the Arc Universities Group apart is the diversity of its institutions, which together offer a remarkable breadth of world-class research, innovation and skills provision. Working closely together, we will ensure we maximise the remarkable opportunities that these investments unlock, delivering wide-ranging benefits for communities right across the corridor.”

A major milestone for regional growth

Th Chancellor of The Exchequer, Rachel Reeves, said:

“Oxford and Cambridge are home to two of the best universities in the world, two of the most intensive innovation clusters in the world, and the area is a hub for globally renowned science and technology,” said Reeves. “Yet thanks to years of underinvestment, they still lack the public transport, affordable housing, and infrastructure they need. That changes under this government.”

She continued:

“We have massive ambitions for the Oxford–Cambridge Corridor – that’s why we’re reopening the Cowley Branch railway 60 years after it closed, building more affordable housing and investing in business, and unlocking £10 billion in private investment. By choosing investment and renewal over chaos and decline, we’re boosting growth and building an economy that works for working people.”

Lord Vallance, Science Minister and the Government’s Oxford–Cambridge Innovation Champion, said:

“These investments are a milestone, not just for the Oxford to Cambridge Corridor, but for the entire country. This region has all the ingredients to be the UK’s answer to Silicon Valley or the Boston Cluster: somewhere that turns world-class innovation into economic growth the whole nation benefits from. Today is proof we’ll back the OxCam region to fulfil its enormous potential.”

Driving the UK’s science and innovation mission

The growth package also includes £15 million for the University of Cambridge Innovation Hub, creating new lab space for science startups, alongside a £10 billion expansion of the Ellison Institute of Technology’s Oxford base – expected to create 7,000 jobs and cement the region’s position as a world leader in research and development.

Lisa Flashner, Chief Operating Officer at the Ellison Institute of Technology, said:

“We’re delighted to hear the Cowley Branch Line will be reopened to passenger traffic. It’s a great example of what can happen if government and the private sector join forces and both contribute to a common goal. It will help us attract world-class talent to EIT by linking up key innovation hubs with Central London via direct train services. It will also facilitate a closer alliance between EIT and Oxford University with faster journey times.”

Andy Williams, Chair of the Supercluster Board, added:

“Today’s announcements mark a significant step towards unlocking the full potential of the Oxford–Cambridge Growth Corridor – an essential component of the UK’s growth ambitions. Building on investment in East West Rail, the package for Greater Cambridge and the reopening of the Cowley Branch Line in Oxford are exactly the kind of joined-up interventions that will help our region of 3.5 million people compete on the global stage. With a potential prize of up to £78 billion in cumulative economic growth by 2035, we have no time to waste. We can and must now go further and faster. By realising the potential across the cluster, we can boost UK science and innovation and drive sustainable, long-term prosperity across the region.”

A joined-up vision for growth

This latest announcement builds on the Oxford–Cambridge Growth Corridor Investment Prospectus, launched earlier this week at the Regional Investment Summit, which sets out the region’s shared vision for driving innovation, skills, and sustainability.

The funding package reflects a new era of collaboration between universities, government, and industry, with the Arc Universities Group playing a central role in linking talent, research, and innovation capacity across the corridor.

Partner and stakeholder reactions

Sarah Haywood, Managing Director, Advanced Oxford:

“The government’s investment into reopening the Cowley Branch Line is an exciting and important boost to the Oxford region, connecting communities, science infrastructure and businesses to the city centre, our universities and beyond.

It is a great example of government investment unlocking private sector support, cementing the region as a world-class science super-cluster.”

Kathryn Chapman, Executive Director, Innovate Cambridge:

“Cambridge is a magnet for world-class talent, business and investment, driving innovations that will shape the future – from life-saving medicines to quantum technologies. The investment package announced today for Cambridge and the wider Ox-Cam corridor will remove barriers, unlock growth, and ensure Cambridge and the UK remain at the forefront of global innovation.”

Dan Thorp, CEO, Cambridge Ahead:

“We welcome the Government’s backing for the Cambridge Growth Company and wider OxCam Corridor – these are major interventions that will create better conditions for good growth to happen.

Cambridge generates national wealth and fuels innovation clusters in other cities and regions. As Cambridge grows, the benefits are felt across the UK. Today’s announcement represents a transformational opportunity for UK productivity, generating returns felt from Bristol to Blackpool.”

Looking ahead

With national attention firmly focused on the Oxford–Cambridge region, the Arc Universities Group will continue to work alongside partners to translate investment into impact – supporting a future built on skills, innovation and sustainable growth.