(1 day, 19 hours ago)
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The Minister for Housing and Planning (Matthew Pennycook)
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.
To demonstrate the Government’s firm commitment to realising the full potential of Greater Cambridge in the months and years ahead, I can today also confirm the following:
A new chief executive will be recruited to lead the next phase of the CGC’s ambitious programme.
The Department of Science, Innovation and Technology will provide a £15 million grant for the University of Cambridge’s innovation hub to build a flexible, world-class lab space where life science and technology start-ups can begin their growth journey to becoming global businesses.
The CGC is working with the Cambridgeshire and Peterborough combined authority and other local partners to explore options for mass rapid transit solutions for Cambridge.
The Government have instructed Anglian Water to accelerate planning for wastewater infrastructure upgrades required to accommodate development and growth both now and for the Cambridge Growth Company’s long-term ambitions for expansion in Greater Cambridge. This will report to Government by early 2026.
Work continues with local partners and the advisory water scarcity group to deliver our water efficiency programme. The first phase, backed by £5 million of investment, is already under way and will roll out water retrofits in social housing and public buildings across the city.
Investment announced today will go towards expanding delivery of the water efficiency programme and wider water package to address water scarcity. We will also use Cambridge as a testbed to trial innovative water interventions, including working with experts to switch on the water recycling system at the Eddington site in north-west Cambridge next year.
We will continue to update Parliament on the work of the Government in Greater Cambridge, and the Oxford-Cambridge growth corridor.
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