Tony Quested
Business Weekly 15 Mar 2026
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The UK Government has reiterated its lofty aim to create Europe’s Silicon Valley in the Oxford-Cambridge Arc, despite what appear to be hideous infrastructure problems.
Chancellor Rachel Reeves is expected to share plans for a new Development Corporation for Greater Oxford in the coming week, slashing burdensome red tape to regenerate the area, to boost jobs and growth.
She says development corporations have a history of transforming local areas – including in Canary Wharf, and Stratford where the London Legacy Development Corporation regenerated the area and delivered the 2012 Olympic and Paralympic Games in East London.
It follows the launch of a consultation on a Greater Cambridge Development Corporation earlier this year and would mean both cities can plan and deliver growth more effectively, in the Government’s opinion.
Development Corporations are focused on speeding up major development and regenerating key sites to bringing in new investment to boost homes, jobs and growth.
This bolsters the Government’s ambition to make the corridor the Silicon Valley of Europe, the global hub for advanced manufacturing, AI and life sciences, boosting the UK’s economic growth.
The Chancellor is expected to set these development corporations up for success by doubling the funding available to buy land and build the supporting infrastructure from £400 million to up to £800 million.
The funding would also be used to back new housebuilding in the region as well as high spec research labs – helping to tackle everyday cost of living pressures by boosting housing supply, cutting commuting times and creating more high‑paid jobs across the region.
An intention to consult on the plans for Greater Oxford will be unveiled this week ahead of the Chancellor’s Mais Lecture on Tuesday (March 17) where she will set out the areas with the greatest growth opportunities for the UK in the decade to come and how in a new era of global uncertainty this government’s economic plan is the right one.
A government source said: “Our plans for the Oxford-Cambridge corridor are ambitious. And the prize on offer is to have the Silicon Valley of Europe here in Britain – bringing more jobs and more vibrant places to live. We have the right economic plan and this week the Chancellor will set out how the regions are crucial to the next decade of growth.”
Over the last year, the Government has made a number of announcements designed to support growth of the Corridor. These include:
- Confirming £2.5 billion for East West Rail at the Spending Review.
- Establishing the UK’s first AI Growth Zone in Culham, with £2.5 billion for fusion at UKAEA.
- Fast-tracking plans for two new reservoirs in Oxfordshire and Cambridgeshire, as part of a £104 billion private sector funding package.
- Supporting Universal Studios to open a world-class theme park in Bedfordshire, which will generate a £50bn boost for the economy and create around 28,000 jobs.
The Chancellor is also expected to build on announcements last autumn and make a further £400m available to help bring forward development and enabling infrastructure across the Oxford to Cambridge corridor.