The Government has approved the long-awaited reopening of the Oxford Cowley rail branch line, marking a major milestone in plans to transform the Oxford-Cambridge corridor into the “Silicon Valley of Europe”.
The £155 million scheme – part of a wider £500 million investment package announced by Chancellor Rachel Reeves – will be jointly funded by the Treasury (£120 million) and private stakeholders led by the Alison Institute of Technology Oxford, which will contribute an additional £35 million.
The new rail line, which has been closed to passengers for more than 60 years, will connect South Oxford and the 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 stations in Littlemore, adjacent to its expanded Oxford campus – a 2 million square foot complex expected to host 7,000 people when it opens in 2027.
The institute plans to invest £10 billion in science and technology programs over the next decade, focusing on tackling global challenges such as health, food security and climate change.
The project is part of Reeves' strategy to accelerate development along the Oxford–Cambridge Arch, an area he described as “a hub for globally renowned science and technology”, but one that has suffered from “years of underinvestment in public transport, housing and infrastructure”.
“These investments lay the foundation for thousands of skilled jobs and leading-edge research that will benefit working people across the country,” Reeves said.
As well as the reopening of the Cowley Line, the Treasury will contribute £400 million of seed funding for affordable housing, local infrastructure and business expansion in Cambridge.
Alison Institute of Technology Oxford, designed by Lord Foster of Thames Bank's architecture practice, is at the heart of the government's ambition to transform the corridor into a world-class science cluster.
The institute is positioning itself as a global hub for AI, biotech and sustainability research, and will act as a catalyst for collaboration between academia and industry.
Lisa Fleshner, chief operating officer of the institute, said the new rail connection will be critical in recruiting and retaining top global talent.
“The new line will help us attract world-class scientists and facilitate closer collaboration between the Ellison Institute and the University of Oxford,” he said.
Lord Vallance, the science minister and former GSK executive, said the Oxford-Cambridge corridor has all the ingredients to become “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 realised.”
The announcement comes as the government faces mounting pressure to revive growth momentum ahead of next month's Budget.
Talks are underway between London and Washington over drug pricing and trade tariffs, after many multinational pharma companies halted investment in the UK due to regulatory uncertainty.
By linking infrastructure development to private sector innovation, Reeves aims to signal that the UK is open to science-led development and international collaboration.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.
