Thousands of new jobs, affordable homes, and improved transport links are on the way for people living and working between Oxford and Cambridge.

As part of a major new £500 million investment package, the government is backing growth along the Oxford–Cambridge Corridor — an area already known for its world-class universities and cutting-edge science and technology.

Connecting communities and creating opportunity

A key part of the plan is reopening the Cowley rail line in Oxford, closed for nearly 60 years. Two new stations — at Littlemore and Cowley — will reconnect local communities to the city centre, helping people access jobs, homes, and opportunities. This project alone could support up to 10,000 new jobs and homes in Oxford.

In Cambridge, up to £400 million in government funding will kickstart major developments, including affordable housing, modern infrastructure, and space for growing businesses.

These investments build on the government’s wider commitment to East West Rail, which will strengthen links across the corridor — from Oxford to Cambridge, via Milton Keynes and Bedford — making it easier than ever for people and ideas to move across this high-growth region.

Science and innovation at the heart of growth

The announcement comes alongside exciting news from the Ellison Institute of Technology, which plans a £10 billion expansion of its Oxford base over the next decade. This will create around 7,000 jobs and cement Oxford’s reputation as a global leader in scientific research and innovation.

Together, government and private sector investments will help transform the Oxford–Cambridge Corridor into Europe’s own “Silicon Valley”. Over the past decade, the region has already created 43,000 jobs, attracted £27.5 billion in investment, and become home to two of Europe’s top-ranked innovation hubs.

What leaders are saying

The Chancellor of the Exchequer, Rachel Reeves said: “Oxford and Cambridge are home to the two of the best universities in the world, two of the most intensive innovation clusters in the world, and the area is a hub for globally renowned science and technology. Yet thanks to years of underinvestment, they still lack the public transport, affordable housing, and infrastructure they need. That changes under this government.

We have massive ambitions for the Oxford-Cambridge corridor, that’s why we’re reopening the Cowley Branch railway 60 years after it closed, why we’re building more affordable housing and investing in business, and how we’ve been able to unlock £10 billion in private investment. By choosing investment and renewal over chaos and decline, we’re boosting growth and building an economy that works for working people”.

Science Minister and Oxford-Cambridge Innovation Champion, Lord Vallance, said:

“These investments are a milestone, not just for the Oxford to Cambridge Corridor, but for the entire country. We are going to deliver the housing, amenities and infrastructure that businesses need to grow and that people need to flourish.

This region has all the ingredients to be the UK’s answer to Silicon Valley or the Boston Cluster: somewhere that turns world-class innovation into economic growth the whole nation benefits from. Today is proof we’ll back the OxCam region to fulfil its enormous potential”.

Housing and Planning Minister, Matthew Pennycook said:

“This government is putting its money where its mouth is to realise the full potential of Greater Cambridge. The funding we have allocated will provide the Cambridge Growth Company and a future delivery vehicle with capital needed to unlock key sites, remove barriers to sustainable growth and ramp up housebuilding in the years ahead to the benefit of existing communities in Greater Cambridge and the UK economy as a whole”.

Backing innovation for the future

The package also includes £15 million for the University of Cambridge Innovation Hub, creating new laboratory space for science start-ups to grow, collaborate, and compete globally.

This announcement follows the unveiling of the Oxford–Cambridge Growth Corridor Investment Prospectus at the Regional Investment Summit earlier this week — setting out fresh opportunities for global investors. The Chancellor will continue promoting UK innovation and investment opportunities at the Future Investment Initiative Summit in Saudi Arabia next week.

Lisa Flashner, Chief Operating Officer at the Ellison Institute of Technology said:

“We’re delighted to hear the Cowley Branch Line will be reopened to passenger traffic. It’s a great example of what can happen if government and the private sector join forces and both contribute to a common goal. It will help us attract world-class talent to EIT by linking up key innovation hubs with Central London via direct train services. It will also facilitate a closer alliance between EIT and Oxford University with faster journey times”.

Andy Williams, Chair of the Supercluster Board said:

“Today’s announcements mark a significant step towards unlocking the full potential of the Oxford–Cambridge Growth Corridor – an essential component of the UK’s growth ambitions. Building on investment in East West Rail, the package for Greater Cambridge and the reopening of the Cowley Branch Line in Oxford are exactly the kind of joined‑up interventions that will help our region of 3.5 million people compete on the global stage. With a potential prize of up to £78 billion in cumulative economic growth by 2035, we have no time to waste. We can and must now go further and faster. By realising the potential across the cluster, we can boost UK science and innovation and drive sustainable, long‑term prosperity across the region. We look forward to working closely with Lord Vallance and his team to deliver on this shared ambition”.

Sarah Haywood, Managing Director, Advanced Oxford said:

“The government’s investment into reopening the Cowley Branch Line is an exciting and important boost to the Oxford region, connecting communities, science infrastructure and businesses to the city centre, our universities and beyond.  The line will help to realise the full potential of East-West Rail - facilitating connectivity, collaboration and employment across the Oxford to Cambridge corridor.  It is a great example of government investment unlocking private sector support, cementing the region as a World-class science super-cluster”.

Cambridge generates national wealth and, crucially, fuels innovation clusters in other cities and regions. Companies born in Cambridge, and those attracted here from around the world, create jobs in all corners of the UK. As Cambridge grows, the benefits are felt across the UK.

Cambridge can only play its national growth mission role if major local infrastructure and housing constraints are addressed. As Lord Vallance said recently, we’d be “mad not to” maximise the potential of this region.

Today’s announcement represents a transformational opportunity for UK productivity, generating returns felt from Bristol to Blackpool”. Photo by Steve Daniels, Wikimedia commons.