Oxford to Cambridge Growth Corridor

Paul Holmes Excerpts

Wednesday 3rd December 2025 Westminster Hall

[Paul Holmes (Hamble Valley) (Con)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I congratulate the hon. Member for Cambridge (Daniel Zeichner) on securing this important debate on the Oxford-Cambridge growth corridor, an area of enormous potential, world-class institutions and a genuine capacity to drive innovation and national prosperity. He is a dedicated campaigner and champion for his constituency—he has been for a number of years—and that emanated from his speech this afternoon.

I would like to mention a few speeches from Members on both sides of the House who have spoken passionately on behalf of their constituencies. The first is my hon. Friend the Member for Mid Bedfordshire (Blake Stephenson), who gave us a wonderful tour of his constituency. I know that the Minister will take away, through officials, his plea for junction 13 of the M1 to be upgraded. We know that north Bedfordshire, like many areas in the community in which he serves, has had a huge expansion.

Whatever the hon. Member for South Cambridgeshire (Pippa Heylings) had for breakfast, I would like some too, because we had a very rapid constituency tour, quite rightly explaining to us why her constituency is special. She was right about the infrastructure needs, and particularly the nature and environmental concerns. Her party and mine have been very concerned about some of the retrograde steps that the Government have taken in terms of planning and infrastructure regarding nature and the environment.

The hon. Member for Oxford West and Abingdon (Layla Moran) quite rightly gave her view, as she is perfectly entitled to do, on local government reform. In this Chamber we actually heard a disagreement between two Members; I know that my hon. Friend the Member for Mid Bedfordshire has strong concerns about LGR when it comes to a Milton Keynes–Bedfordshire–Luton mayor. That is something that we, again, are concerned about, where local authorities are being forced to reorganise come what may. Projects such as the one we are talking about today suffer as a result and come secondary to a needless reorganisation.

The Liberal Democrat spokesman, the hon. Member for Ely and East Cambridgeshire (Charlotte Cane), managed to bring up Brexit in this debate, which I was slightly surprised by. I am never astounded by the tenacity of the Liberal Democrats, even if it does make me wonder why “Democrats” is in their party’s name.

The Oxford-Cambridge growth corridor, sometimes called the Oxford-Cambridge arc, is not a new idea, as the hon. Member for Cambridge said. Its origins go back to the early 2000s when three regional development agencies came together with an ambition

“to create one of the most successful knowledge-based economies in Europe.”

That ambition was renewed in 2016 when the National Infrastructure Commission was tasked to consider how best to maximise the potential of what is indisputably one of the most exciting, knowledge-intensive economic clusters anywhere in the world. The facts speak for themselves. Within the arc, there are at least 10 major higher education institutions, including Cranfield University, with its world-leading strengths in aerospace and automotive engineering; the Open University; and of course the globally renowned universities of Oxford and Cambridge. Those are institutions that any country would be proud to host, yet this Government’s economic policies are stifling their progress, and the progress of the corridor project.

That is the crux of the problem: the Chancellor wrote, in her foreword to the Government’s policy paper on the Oxford-Cambridge growth corridor, that

“Economic growth is the number one mission of this government and remains at the heart of all we do.”

If this is what it looks like when growth is at the heart of what the Government do, I dread to imagine what they would do if they decided it was not a priority. That statement is not the experience of the institutions, businesses and local communities that work tirelessly to ensure that the corridor remains a leading hub of innovation, productivity and opportunity.

We know that the Chancellor believes that the corridor could add up to £78 billion to the UK economy and we agree, but that number becomes a reality only if the Government provide the environment, the confidence and the long-term stability that private investors need. Instead, they have hiked taxes, raised business rates and plunged the markets into uncertainty. The Government’s own announcements, dropped somewhat sporadically and often without clarity, speak to their confusion. In October, Ministers published a press release promising jobs, homes and better transport links across the corridor. We heard about water infrastructure investment, a proposed new town at Tempsford, £400 million of initial funding to kick-start development in Cambridge and £15 million for the University of Cambridge innovation hub.

All of those things sound encouraging, but this Government have become experts in making announcements while failing to deliver the underlying conditions that make delivery possible. They talk of homes but their housing targets will not be achieved. They talk of infrastructure but cannot secure long-term investment. They talk of growth but have presided over an economy with its growth revised downwards again and again, meaning that long-term problems will be incurred in the progress of this much-needed project. Before the 2024 election, the Chancellor told British people that she would raise taxes by £7 billion. Instead, at last year’s autumn Budget she raised them by £40 billion and at this year’s autumn Budget by another £26.6 billion.

Economic forecasters have not been fooled. Since the Chancellor took office, the Office for Budget Responsibility, the Bank of England, the International Monetary Fund and the CBI have all downgraded the UK’s growth prospects. The OBR’s growth forecast for 2026 fell from 1.9% to 1.4%; inflation, which stood at just 2.2% on election day, has risen to 3.8%; the unemployment rate has hit 5%; and the deficit is set to double by ’28-29. The UK now has the fastest rising tax burden in the G7. That does not encourage growth, business investment or the stability that businesses and organisations need to get this project off the ground.

In her 2025 Budget, the Chancellor invoked the Oxford-Cambridge growth corridor as an example of a long-term national priority, but what message does it send to the businesses, universities and investors of the corridor when the Government cannot even be transparent about their own growth projections? In this debate, speaker after speaker has rightly emphasised the immense economic, scientific and social value of this region, but potential alone is not enough. Potential needs partnership, consistent leadership and a Government who understand the scale of the opportunity, but everything emanating from the Government has made the aspirations for the corridor more difficult. That is why this debate matters.

This corridor is not just about the south-east or the east of England; it is important to the whole country. It is a showcase for the very best of British innovation, where research excellence meets commercial opportunity, where new technologies are born and where global investment sees a home. The Oxford-Cambridge growth corridor is a once-in-a-generation opportunity. With the right leadership it could drive economic growth, technological advancement and prosperity for decades to come.

Can the Minister tell us how the Government intend to give the corridor the long-term stability, investment confidence and strategic backing it urgently needs to realise its economic potential? Will he commit to setting out a clear, accountable plan for how the Government will support the institutions, businesses and communities of the growth corridor, so that they can contribute fully to the UK’s future growth, rather than being held back by uncertainty and delay?