The Government has approved the long-awaited reopening of the Oxford Cowley railway branch, marking a major milestone in plans to transform the Oxford-Cambridge corridor into what ministers have described as “Europe’s Silicon Valley”.
The £155m program – part of a wider £500m investment package announced by Chancellor Rachel Reeves – will be jointly funded by the Treasury (£120m) and private stakeholders led by the Ellison Institute of Technology Oxford, which will contribute a further £35m.
The new rail line, which has been closed to passenger traffic for more than 60 years, will link south Oxford and Oxford Science Park directly to central Oxford and London Marylebone, improving connectivity for thousands of workers and researchers.
The Ellison Institute, founded by Oracle billionaire Larry Ellison, will design and build one of two new train stations in Littlemore next to its expanding Oxford campus – a 2 million square meter complex expected to house up to 7,000 people when it opens in 2027.
The institute plans to invest £10 billion in science and technology programs over the next decade, with a focus on tackling global challenges such as health, food security and climate change.
The project is part of Reeves’ strategy to accelerate growth along the Oxford-Cambridge arc, a region she described as “a hub for world-renowned science and technology” but which has suffered from “years of underinvestment in public transport, housing and infrastructure”.
“These investments lay the foundation for thousands of skilled jobs and groundbreaking research that will benefit working people across the country,” Reeves said.
Alongside the reopening of the Cowley line, the Treasury will provide £400m of seed capital for affordable housing, local infrastructure and business expansion in Cambridge.
The Ellison Institute of Technology Oxford, designed by architectural firm Lord Foster of Thames Bank, is at the heart of the government’s ambitions to transform the corridor into a world-class science cluster.
The institute is positioning itself as a global center for AI, biotechnology and sustainability research and will act as a catalyst for collaboration between academia and industry.
Lisa Flashner, the institute’s chief operating officer, said the new rail link was key to recruiting and retaining top global talent.
“The new line will help us attract world-class scientists and enable closer collaboration between the Ellison Institute and the University of Oxford,” she said.
Lord Vallance, science minister and former GSK executive, said the Oxford-Cambridge corridor had all the makings of becoming “the UK’s answer to Silicon Valley or the Boston Cluster”.
“This region is where world-class innovation meets economic growth – and projects like this will ensure that potential is realized.”
The announcement comes as the government faces increasing pressure to restore growth momentum ahead of next month’s budget release.
Talks are underway between London and Washington over drug prices and trade tariffs after several multinational pharmaceutical companies suspended investments in the UK due to regulatory uncertainty.
By linking infrastructure development with private sector innovation, Reeves aims to send a signal that the UK remains open to science-led growth and international collaboration.
