The government is set to invest heavily in the Oxford-Cambridge corridor, aiming to transform it into a major growth hub similar to Silicon Valley. This development could boost the UK’s economy by up to £78 billion. Rachel Reeves, Chancellor, is scheduled to discuss this initiative in Oxfordshire, alongside plans to redevelop Old Trafford. She will also address changes to the Green Book, which is the government’s guide for public investment decisions beyond London and the South East.
The Green Book’s focus on economic returns has often been criticised by regional leaders, who argue it favours projects in already prosperous areas like London. In response, the Chancellor recently outlined a new strategy for the National Wealth Fund (NWF) and the Office for Investment (OfI) to partner with local leaders. This strategy includes trial partnerships in areas like Greater Manchester and Glasgow, aiming to attract private investment. The OfI will also pilot initiatives in the Liverpool City Region and the North East to link local projects with government and industry support.
Deputy Prime Minister Angela Rayner met with regional Mayors last Friday in Rotherham, confirming that the Green Book will be reviewed as part of regional growth efforts. Andy Burnham, Mayor of Greater Manchester, welcomed the opportunity, noting the current system doesn’t benefit the North. A review is expected to coincide with the Spending Review this summer.
A new senior taskforce will work with the Greater Manchester Combined Authority on potential devolution in skills, transport, and business support. However, airport expansions mentioned in Reeves’ speech focus on the South East, with substantial plans for Gatwick, Heathrow, and Luton.
These developments appear to aim at mitigating criticism of the government since a controversial budget in October increased National Insurance rates. Reeves will argue that economic growth requires government action in support of working people.
Old Trafford’s regeneration is part of broader efforts, with its current debt-ridden state and repair needs being urgent. The cost is nearing £3 billion. Tracy Brabin, chair of the UK Mayors group and West Yorkshire Mayor, stressed the necessity of regional growth powers and financial freedoms.
West Midlands Mayor Richard Parker highlighted plans for a gigafactory and investment zones, indicating progress in job creation and skills development in advanced sectors.
BVCA Chief Executive Michael Moore supported the government’s growth initiatives, recognising steps to remove investment barriers, especially with improvements planned for transport infrastructure in the Oxford-Cambridge corridor.
However, Justin Sullivan, President of the Royal Institution of Chartered Surveyors (RICS), warned that the Budget has dented business confidence, impacting infrastructure delivery. He noted that Reeves’ speech could help change the current mood, emphasising the need for efficient decision-making on infrastructure projects.
Reeves’ focus includes significant undertakings like the East-West Rail link, but collaboration with regional councils is essential for enhancing local infrastructure and addressing widespread skills shortages in the construction sector.