Reeves will double funding for the cities from £400 million to £800 million, supporting land acquisition and infrastructure development. New houses, high-spec research labs and workspaces are expected to drive growth. 

The funding will also be invested in transport to improve connectivity. These measures are expected to improve housing conditions, create jobs and ensure access for commuters. 

Prior to the announcement, a government source said: “Our plans for the Oxford-Cambridge corridor are ambitious. And the prize on offer is to have the Silicon Valley of Europe here in Britain – bringing more jobs and more vibrant places to live. We have the right economic plan and this week the Chancellor will set out how the regions are crucial to the next decade of growth.”

The focus on the Ox-Cam corridor is not new. The government as already committed to investing in the area, including:

• Confirming £2.5 billion for East West Rail
• Establishing the UK’s first AI Growth Zone in Culham, with £2.5 billion for fusion at UKAEA
• Fast-tracking plans for two new reservoirs in Oxfordshire and Cambridgeshire, as part of a £104 billion private sector funding package
• Supporting Universal Studios to open a world-class theme park in Bedfordshire, which will generate a £50bn boost for the economy and create around 28,000 jobs

The new government update confirmed the chancellor’s continued focus on the area. She noted that landowners who block developments may be subject to compulsory purchase powers to ensure progress isn’t hindered. 

Reeves, said: “We’re building corridors of growth and flinging open the doors of opportunity for every part of Britain.   

“From the great northern cities to the cutting edge labs of Oxford and Cambridge, we are betting on Britain’s regions to power the next wave of innovation and growth.   

She added: “This is the right economic plan in an age of uncertainty.”  

The chancellor is expected to share further plans for a development corporation in Greater Oxford to accelerate growth in the area. Similar schemes have previously had success in Canary Wharf and Stratford. 

The development corporation is expected to speed up regeneration of the area, and ensure growth is effectively delivered more efficiently.

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A similar development corporation for Cambridge was launched earlier this year.

The investment would support the technology, manufacturing and research sectors in both cities.

Dan Thorp, CEO of Cambridge Ahead, said: “Cambridge, the UK’s most innovative city, can deliver the breakthroughs, companies, and jobs that drive UK growth and productivity”, he added, “backing and investment are vital tailwinds that support this ambition.

The city must now focus on “investing wisely and at pace, and ensuring Cambridge remains one of the world’s best places to do business, live and work”.

Andy Williams, Chair of the Supercluster Board stated: “Establishing a new development company in Oxford alongside further support for Cambridge’s Growth Company, is exactly the kind of sustained focus needed to unlock the full potential of the region. Combined with a single investment and promotion offer for the corridor, it creates the conditions that will support the region’s potential £78bn in additional GVA by 2035”.

Just as Silicon Valley is known for its entrepreneurial spirit and as home to many market-leading companies, the Ox-Cam corridor hopes to achieve the same for Europe, becoming a hub for advanced manufacturing, AI and life sciences, and boosting the UK’s economic growth.