NewsChancellor backs plans to boost Oxford-Cambridge growthTo build a UK Silicon Valley between Oxford and Cambridge, boosting the regions tech capabilities, requires more trains, more roads and more housesByCliff Saran,Managing EditorPublished: 29 Jan 2025 14:45 Chancellor Rachel Reeves has unveiled a series of measures aimed at boosting the so-called Oxford-Cambridge Arc as Europes Silicon Valley.She said Oxford and Cambridge offer huge economic potential for the nations growth prospects. According to research from Public First for the Oxford-Cambridge Supercluster, Oxford, Cambridge and Milton Keynes combined already contribute 42bn to the UK economy. Public First noted that by 2050, 403,000 skilled workers will be required to fulfil growth in high-knowledge industries. Its forecast to grow the regions impact shows that housing these people will require 371,000 new homes.As part of the governments AI [artificial intelligence] opportunities action plan, unveiled earlier in January, the first AI growth zone will be set up in Culham, Oxfordshire.The Chancellor announced a call for expressions of interest from regional and local authorities and industry to inform the next stage of the AI growth zones programme. The government hopes this will help to establish opportunities and inform the next stage of the programme, which it positions as a key area.But Oxford and Cambridge are 66 miles apart, and housing is extremely expensive. To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area, she said. But to get from Oxford to Cambridge by train takes two and a half hours. There is no way to commute directly from places like Bedford and Milton Keynes to Cambridge by rail. And there is a lack of affordable housing across the region.The Environment Agency said it has lifted its opposition to new development around Cambridge (Waterbeach and the Beehive Centre) for the development of 4,500 new homes. The plan is to provide community spaces such as schools and leisure facilities, as well as office and laboratory space in Cambridges city centre.To improve transport links, Reeves announced that plans for an East Coast Mainline station in Tempsford will be accelerated by three to five years. The station will link services directly to London, with services in under an hour, and will eventually be an interchange with the East West Rail station.Read more about the governments AI Opportunities Action PlanThe AI Opportunities Action Plan is recommended reading: The governments strategy for accelerating AI has been many months in the making is it enough, and what regulatory environment will be appropriate?Developing AI datacentres has the UK government got what it takes: The UK government has unveiled its 50-point AI action plan, which commits to building sovereign artificial intelligence capabilities and accelerating AI datacentre developments but questions remain about the viability of the plans.There is also a road improvement scheme that will see a 10-mile dual carriageway delivered, as well as three grade-separated junctions three-tier at Black Cat roundabout (A1/A421) and two-tier at Cambridge Road (B1428) and Caxton Gibbet (A428/A1198). Main construction began in December 2023, and the road is expected to open in 2027.Science minister Patrick Vallance said: The UK has all the ingredients to replicate the success of Silicon Valley or the Boston Cluster, but for too long has been constrained by short-termism and a lack of direction.This governments plan for change will see an end to that defeatism, he said. I look forward to working with local leaders to fulfil the Oxford-Cambridge corridors potential by building on its existing strengths in academia, life sciences, semiconductors, AI and green technology amongst others.In The Current Issue:World Economic Forum: Digital supply chains at risk as world faces two years of turbulenceData sovereignty and security in the UKDownload Current IssueDeepSeek: Moving beyond muscle car AI Cliff Saran's Enterprise blogData engineering - Domino Data Lab: Adapting engineering practices for the AI era CW Developer NetworkView All Blogs