Oxford to Cambridge Growth Corridor

Layla Moran Excerpts

Wednesday 3rd December 2025 Westminster Hall

[Layla Moran (Oxford West and Abingdon) (LD)]

It is a pleasure to serve under your chairship, Sir Jeremy. I thank the hon. Member for Cambridge (Daniel Zeichner) for securing this important debate.

It is a joy to represent the city of Oxford, particularly the university bits that I have inherited from my neighbour, the right hon. Member for Oxford East (Anneliese Dodds). I am glad she got to keep her own college, though; that just felt right. As such, I am able to wax lyrical about our university—a powerhouse of innovation at the centre of a hub of science and technology businesses, with the highest concentration of science research centres in western Europe. Irene Tracey, its new vice-chancellor, is a personal example of Oxfordshire’s potential. Born in Oxford and educated at a local comprehensive in Kidlington, she is herself a powerhouse in the life sciences, and she has a vision for the university as a global leader of innovation, while recognising its rootedness in our community.

Oxfordshire, as a county, is one of the most productive regions in the UK. In 2025, the global innovation index ranked Oxfordshire fifth globally for the most innovation-intensive clusters relative to population density. In order to build on that, like so many others, we need the infrastructure and, in particular, connectivity. Oxfordshire county council’s OxRAIL 2040 plan sets out an ambitious but realistic programme of investment to support sustainable growth and link homes with key employment sites across the county. It started with the Cowley branch line, which was a huge achievement, and I was delighted that it was realised. However, that must be only the start, because what we need to do is connect people with jobs and with homes, and create communities as we go.

It is for those reasons that I am sorry to say that I profoundly disagree with the right hon. Member for Oxford East and her assessment of what is right for local government reorganisation, because to divorce Oxford University and the city from the rest of the area fails to understand the interconnectivity of our county. I will give one example. Under the current Greater Oxford plan, it cuts off Abingdon from Culham. At one point, Abingdon had the highest number of PhDs per square kilometre in Europe because of the Culham Science centre, yet the two would be artificially cut off even though they are absolutely adjacent. It makes no sense.

The better, more practical approach, with fewer barriers, is to focus on the county as a whole and make sure that, when we look at where we put jobs and drive innovation, we create communities across the whole county. Otherwise, we will find ourselves in the same position again, looking at a constrained city centre and a constrained greater Oxford, wanting to expand ever more. I hope that the Government look coolly at the numbers. I am sure they will be convinced that the “One Oxfordshire” vision for the whole county, with the city and the university at its centre, is the right way to go.

--- Later in debate ---

[The Minister for Housing and Planning (Matthew Pennycook)]

It is a pleasure to see you in the Chair, Sir Jeremy. I warmly congratulate my hon. Friend the Member for Cambridge (Daniel Zeichner) on securing this debate. I thank him for his enthusiasm: despite the shadow Minister’s attempt to cast doom and gloom on the situation, there is a huge amount to be positive about in the Ox-Cam corridor. Not only is my hon. Friend a powerful advocate for the interests of his city, but he has long recognised the huge potential in the Oxford-Cambridge corridor and the high-potential growth sectors within it, as evidenced by his opening remarks. It is therefore fitting that it is he who has given hon. Members the opportunity to discuss this vital matter.

I also thank the many other hon. Members who have spoken. I am really pleased that it has been such a well-attended debate. I have heard lots of bids for recognition of any kind, including from my hon. Friends the Members for Reading Central (Matt Rodda) and for Milton Keynes North (Chris Curtis), and support for funding. Support is undoubtedly required when it comes to things like planning capacity and capability, an issue raised by the hon. Members for North Bedfordshire (Richard Fuller) and Mid Bedfordshire (Blake Stephenson). There were also requests, as I expected, for various grant funding pots across Government. I cannot respond to each request directly, but I assure hon. Members that I will make sure that my ministerial colleagues in the relevant Departments are made aware of them.

In the time available, I will respond to as many as possible of the thematic and broad issues that have been raised. I will start by outlining why the Government are so focused on supercharging growth in the Ox-Cam corridor as part of our ambitious plan for change. As we have heard today, the Oxford-Cambridge region is already an economic powerhouse. It is home to world-leading universities, to globally renowned science and technology firms and to some of the most dynamic innovation clusters in Europe. For a region of 3.5 million people, it punches well above its weight by contributing £143 billion annually to the UK economy.

As this debate has evidenced, the corridor is not just a stretch of land between two cities with world-class universities; its strength lies in the combined economic power of the entire region. With its highly productive and thriving tech sector, Milton Keynes, which my hon. Friend the Member for Milton Keynes North rightly raised, is a magnet for innovation and investment. Silverstone contributes advanced manufacturing capabilities. Luton brings global connectivity through its international airport and its strong Eurospace and engineering cluster. Culham is now a thriving centre for research, innovation and a world-recognised fusion technology cluster. I could go on—there are many other examples of places that are doing fantastic things. Together, these and other places within the corridor form an interconnected economy that is driving growth, attracting talent and delivering benefits for those places and for the UK as a whole.

However—and there is strong consensus across the Chamber on this point—we have not yet realised the region’s full potential. It has the potential to become one of the most innovative and economically dynamic areas in the entire world, but as things stand, numerous constraints, from inadequate transport connections to a lack of affordable housing, are preventing it from realising its true potential. That is why the Government are determined to do what is necessary and apply clarity and consistency to drive sustainable economic growth in the region, to the benefit of local communities and national prosperity.

As has been said, there are numerous constraints preventing the corridor from realising its potential. We have had a couple of examples today, and I could add to them. It currently takes two and a half hours to travel by train from Oxford to Cambridge; there is no way to commute by rail directly to Cambridge from places such as Bedford and Milton Keynes; and the lack of affordable housing across the region is a major barrier to securing the world-class talent on which world-class companies depend.

As my hon. Friend the Member for Cambridge rightly argued, it is now imperative that, after several false starts, we do what is necessary to drive the growth that we need in the region. That is why the Chancellor made it clear in January that the Ox-Cam corridor would be an economic priority for the Government; it is why she appointed Lord Vallance as the ministerial champion for the region.

If we are to drive the growth we need in the region, we must improve its infrastructure. As hon. Members will know, we have reaffirmed our commitment to deliver East West Rail in full. That will provide a direct rail line between Oxford, Milton Keynes, Bedford and Cambridge, reconnecting businesses and communities and increasing opportunities for people who live and work in the corridor.

More recently, at the end of October, we committed £120 million to reopen the Cowley branch line in Oxford. That unlocked significant private investment from the Ellison Institute of Technology, which has committed more than £10 billion in science and technology as it expands its Oxford site over the next decade. All of that is on top of our existing projects to improve wider transport infrastructure across the region, such as the upgrade to the A428, which is central to boosting connectivity between Cambridge and Milton Keynes. We are also supporting greater international links for the corridor through our championing of the expansion of Luton airport.

As my hon. Friend the Member for Cambridge set out, we need to develop a clear plan for infrastructure in its widest sense. We are therefore working actively across Whitehall and with local partners to consider the region’s needs in areas such as energy and water provision.

[Layla Moran]

I absolutely agree that the Cowley branch line is amazing, but I underline the point that the right hon. Member for Oxford East (Anneliese Dodds) made about the Kennington bridge problem: there is a £70 million hole there. That matters, because the Oxford flood alleviation scheme will protect the Thames valley floodplain, the largest unprotected floodplain in Europe. If the problem is not addressed, the scheme will get held up, which in turn will stifle growth across the region. It is really important—small, but important.

[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.