The goal of turning the Oxford-Cambridge corridor into “Europe’s Silicon Valley” is at risk of stalling unless the government speeds up delivery of long-promised infrastructure, business leaders have warned.
A coalition of major businesses, universities and investors have written to Rachel Reeves calling for faster progress on transport and planning commitments for the so-called OxCam supercluster, amid growing concerns that delays to the East West Rail project are undermining investor confidence.
The warning comes in a report from the Oxford-Cambridge Supercluster, which is supported by 46 organizations including AstraZeneca, GSK, Airbus and the Ellison Institute of Technology Oxford, founded by US tech billionaire Larry Ellison.
The corridor has been endorsed by the Chancellor as a cornerstone of Labour’s growth strategy, with ministers promising to deliver a planned £78 billion boost to the UK economy by 2035 by expanding science, technology and life sciences.
However, the report warns that uncertainty over infrastructure delivery – particularly the East West Rail (EEA) route – could undermine this potential.
The East West Rail scheme, which will link Oxford and Cambridge via Milton Keynes and Bedford, is widely seen as crucial to transforming the region into a single integrated jobs and innovation market.
But concerns are growing that the project is falling behind schedule. Industry leaders fear the required development approval may not be submitted until 2027, meaning final approval could fall outside the current Parliament – putting the government’s operational target for 2035 at risk.
Andy Williams, chief executive of the Oxford-Cambridge Supercluster and a former AstraZeneca executive, said the lack of certainty was already damaging confidence.
“Without clarity and speed, we risk destroying investor confidence,” he said, warning that trains may not be able to complete the entire route by 2035 unless action is taken quickly.
The corridor has regained political momentum after losing priority under Boris Johnson’s government as regional “levelling up” took center stage. Business leaders have welcomed Labour’s renewed attention but say ambition must now be matched by delivery.
While the government pledged £2.5bn to develop East West Rail at the June spending review, the report argues that funding alone is not enough without a clear, regional delivery plan.
The government has taken a number of steps, including allowing the reopening of the Cowley branch line at Oxford and appointing Lord Vallance as the corridor’s growth champion. Ministers have also promised a more detailed plan for this year.
However, the report calls for stronger governance across the region, as well as an overarching spatial strategy that sets out where housing, laboratories and commercial space should be prioritized – and how supporting infrastructure should be delivered.
The report, co-authored with the University of Cambridge’s Center for Business Research, shows that economic growth is already spreading beyond Oxford and Cambridge to places such as Milton Keynes and Stevenage, home to a major GSK research site.
The corridor is now home to around 3,000 knowledge-intensive companies, employing 152,000 people and generating an annual turnover of £45 billion. Employment growth has exceeded the UK average over the last decade.
Shaun Grady, chairman of AstraZeneca UK, said East West Rail was a “vital infrastructure” needed to connect campuses, laboratories and cities in a single talent market and ensure scientific advances translate more quickly into economic growth.
Nick Pettit, senior partner at property consultant Bidwells, added that the rail link was the “missing piece” and said the government needed to provide planning certainty and accelerate the delivery of housing and employment space along the route.
A Department for Transport spokesman said East West Rail remained a “growth catalyst”, adding that officials were examining how recent planning reforms could be used to deliver benefits more quickly.
When the route is completed, travel time between Oxford and Cambridge is expected to reduce from around three hours to just over 90 minutes – a transformation that businesses say is essential if the UK is serious about building a globally competitive innovation corridor.
