Today, I set out further steps the Government are taking to realise the full potential of Greater Cambridge as part of our plans to supercharge growth in the Oxford- Cambridge corridor.
The Oxford-Cambridge region is already home to world-leading universities and globally renowned science and technology firms. It has the potential to become one of the most innovative and economically dynamic areas in the world. However, numerous long-standing barriers to further growth, from inadequate transport connections to a lack of affordable housing, are preventing it from realising its true potential.
The supply-side constraints evident across the Oxford-Cambridge region are particularly acute in Greater Cambridge. Its economic growth has been a phenomenal success and the city and its environs are home to the most intensive science and technological cluster in the world. Yet, Cambridge’s continued position as a world-leading centre of innovation is dependent on tackling infrastructure deficiencies, commercial accessibility and housing affordability.
In October 2024, I appointed Peter Freeman to chair the Cambridge Growth Company (CGC)—a subsidiary of Homes England. The CGC was tasked with working with local partners to develop and implement an ambitious plan for high-quality sustainable growth in Cambridge and its environs. Its efforts to unlock and accelerate prime development opportunities have already facilitated the delivery of over 9,000 additional homes, a new cancer hospital, and new commercial and laboratory space.
In addition to identifying and enabling near-term development opportunities, the CGC was asked to develop the evidence base to support an infrastructure-first growth plan and a long-term delivery vehicle. Based on the work the CGC has undertaken over the past year, I believe that the nature, scale and complexity of ambitious and high- quality sustainable growth in Cambridge and its environs will require a delivery vehicle with the necessary powers, authority and access to finance.
I am therefore announcing today that the Government intend to consult on establishing a centrally-led development corporation to deliver nationally significant growth in Greater Cambridge.
To support the delivery of new homes, infrastructure, business and laboratory space, and a programme of water-saving measures, the Government are also making available up to £400 million of initial funding. This ambitious funding package will provide the CGC and a future delivery vehicle with the capital needed to unlock and accelerate key sites, remove barriers to sustainable growth, and boost housing supply.
In order that the benefits of further growth will be felt by new and existing communities alike, we are committed to an ongoing partnership with local leaders, communities and residents. Their insights, knowledge and direct input will steer the precise form of any delivery vehicle’s ambition. Should a decision be taken to establish a centrally-led development corporation, it is our intention that local democratically elected leaders would be invited to join the board. There will be opportunities to formally shape the Government proposals as part of the future consultation process.