Oxford to Cambridge Growth Corridor

Debate between Matthew Pennycook and Pippa Heylings

Wednesday 3rd December 2025 Westminster Hall

[Matthew Pennycook]

I have already had a conversation with my right hon. Friend the Member for Oxford East (Anneliese Dodds) about the importance of Kennington bridge to supporting growth and the transformation of Oxford’s west end, and I recognise the significant interdependencies with the Oxford flood alleviation scheme. The hon. Lady should be in no doubt, and my right hon. Friend is in no doubt, that I have made the point to Ministers in the DFT, as my right hon. Friend has done directly. We recognise the importance of the project.

Another key priority for the corridor is affordable housing, which obviously falls within the responsibilities of my Department. We need to deliver ambitious housing with a strong sense of place, creating sustainable communities with a high quality of life. That is why we are taking a strong place-based focus through the work of my Department in Cambridge and Oxford in particular.

As my hon. Friend the Member for Cambridge mentioned, we have established the Cambridge Growth Company, which is chaired by Peter Freeman, whom I met again this morning, to drive forward plans for nationally significant growth in greater Cambridge. We are committing up to £400 million to this work to deliver more homes, commercial space and jobs, and have recently announced our intention to consult next year on a centrally led development corporation for the area. As my hon. Friend also mentioned, appointing a high-calibre chief executive to that work will be vital. I can assure him that the search for an exceptional candidate will begin shortly.

I appointed regeneration expert Neale Coleman CBE to lead work on the Oxford growth commission, which is supporting a programme of work to unlock stalled development sites and deliver much-needed housing, including social housing. My right hon. Friend the Member for Oxford East will be aware that 60% of our £39 billion social and affordable homes programme is targeted at social rented homes. We encourage providers in Oxford and across the corridor to put in ambitious bids when the programme opens in February.

The corridor could also benefit from our wider work on the new towns programme, with three of the 12 areas highlighted by the new towns taskforce—Tempsford, Milton Keynes and Heyford Park in Oxfordshire—identified as potential sites for development. Looking at the opportunities at the sites will be a key priority for my Department in the coming months. As hon. Members are aware, we have already commenced a strategic environmental assessment to explore the programme as a whole and the most appropriate sites to take forward.

We are also putting innovation first by combining public and private investment to unlock growth and support essential infrastructure. That is why we established the UK’s first AI growth zone in Culham, and why we have been able to support the reopening of the railway at Cowley to fully connect Oxford’s innovation districts. As I think the shadow Minister mentioned, that has enabled us to invest £15 million for the Cambridge innovation hub, creating a world-class space for science and entrepreneurship.

The corridor is already a huge focus for international investment. Lord Stockwood is the Minister who leads on investment in the ministerial delivery group, and his door is always open for any investors who want to look at opportunities in the corridor. I am sure that hon. Members will be aware of Universal’s plans to open a world-class theme park and resort in Bedfordshire, which we believe will generate a £50 billion boost for the economy and create approximately 28,000 jobs. That is an example of the Government’s growth mission in practice and of our realising the opportunities for growth, despite the shadow Minister’s pessimism on that front.

We want to go further, however, and to be ambitious in our support for more investment across the region. I was really pleased that the Chancellor launched our new investment prospectus for the corridor at the regional investment summit in October. It showcased a range of significant opportunities across the region and will be key to our ongoing work to attract inward investment and drive job creation across the corridor.

Before I wind up, I want to stress the importance of the environment. As we drive forward our ambitions for the region, it is essential to address environmental constraints and promote sustainable growth. Water scarcity is a key risk to growth in the region. The Government are determined to ensure that we get the infrastructure in place so that businesses and communities can grow and thrive. As I hope hon. Members are aware, we have fast-tracked plans for two new reservoirs in Oxfordshire and Cambridgeshire as part of a £104 billion private sector funding package. We are also implementing innovative approaches to water efficiency in Cambridge.

[Pippa Heylings]

I applaud the Government for confirming and recommitting to those new reservoirs. Will the Minister confirm that the Government understand that the new fens reservoir is enough only for the existing ambitions within the emerging local plan, not for the additional thousands of homes that are being considered by the new development corporation? We need to get the water scarcity group working together now to think about other options. Otherwise, water is a deal breaker.

[Matthew Pennycook]

I assure the hon. Lady that I understand the potential constraint that water may provide. The Cambridge Growth Company, working with local partners in Greater Cambridge, is looking at solutions that can be taken forward. As I say, water efficiency, as well as investment, is needed for infrastructure of the kind that she mentions.

We are recognising the importance of the natural environment by confirming that a new national forest will be established in the corridor to support nature recovery, create green jobs and ensure access to nature for local communities. That is currently in the planning phase, but further details will be released next year.

Lord Vallance cannot respond as the ministerial champion for the corridor, but I stress that this is an example of what mission-led Government means in practice. We have a cross-Whitehall ministerial delivery group that brings together all interested Departments and ministerial champions to ensure that our approach across the region is consistent, joined up and ambitious.

The hon. Members for Bicester and Woodstock (Calum Miller) and for South Cambridgeshire (Pippa Heylings), among others, asked how we are to bring together and co-ordinate infrastructure and investment. There are nationally significant projects, such as East West Rail, but key in my mind on the planning side are the spatial development strategies that will be enabled through the Planning and Infrastructure Bill on a sub-regional level—high-level infrastructure frameworks for investment and housing growth that can pull together and co-ordinate cross-boundary in the way we need, supplementing national interventions.

I conclude by thanking my hon. Friend the Member for Cambridge once again for securing the debate and for all the points that he made. I am more than happy to take up land value capture, skills and issues of interest to him. Given the number of meeting requests that I have had, it is probably time for another. Lord Vallance held some engagement sessions for hon. Members earlier this year; I am happy to facilitate, with him, the scheduling of another drop-in session so that hon. Members get the chance to raise specific issues.

The Government are going further and faster to deliver growth. The Oxford-Cambridge growth corridor is not a distant aspiration; it is happening now. It will happen in this decade, to address the point my hon. Friend made in opening the debate. We are building the homes and the infrastructure, delivering the opportunities that the region’s communities deserve and ensuring the corridor becomes a world-class innovation supercluster, driving prosperity for generations to come.