Ambitions to turn the Oxford-Cambridge corridor into the “Silicon Valley of Europe” are at risk of stalling unless the government accelerates the delivery of long-promised infrastructure, business leaders have warned.
A coalition of major companies, universities and investors have written to Rachel Reeves urging faster progress on transport and planning commitments for the so-called Oxcam supercluster, amid growing concerns that delays in the East West rail project are undermining investor confidence.
The warning comes in a report by the Oxford-Cambridge Supercluster, which is backed by 46 organisations, including AstraZeneca, GSK, Airbus and the Ellison Institute of Technology Oxford, founded by US tech billionaire Larry Ellison.
The Chancellor has endorsed the corridor as a cornerstone of Labour's growth strategy, with ministers promising to boost an estimated £78bn to the UK economy by 2035 through science, technology and life sciences expansion.
However, the report warns that uncertainty over the delivery of infrastructure – particularly the East West Rail (EWR) line – risks blunting that potential.
The East West Rail scheme, designed to link Oxford and Cambridge via Milton Keynes and Bedford, is widely seen as vital to transforming the region into a single integrated labor and innovation market.
But concerns are growing that the project is behind schedule. Industry leaders fear the necessary development consent order may not be submitted until 2027, meaning final approval could be beyond the current Parliament – putting the government's 2035 operational target at risk.
Andy Williams, chair of the Oxford-Cambridge Supercluster board and a former senior AstraZeneca executive, said the lack of certainty is already damaging confidence.
“Without clarity and speed, we risk eroding investor confidence,” he said, warning that trains may not be running on the entire route by 2035 if prompt action is not taken.
The corridor has regained political momentum after being deprived of priority under Boris Johnson's government, when regional “levelling up” became the focus. Business leaders have welcomed Labour's renewed focus, but say ambition must now be matched by execution.
While the government pledged £2.5 billion in the June spending review to progress East West Rail, the report argues that funding alone is not enough without a clear, region-wide delivery plan.
The government has taken some steps, including approving the reopening of the Cowley branch line at Oxford and appointing Lord Vallance as the corridor's development champion. Ministers have also promised a more detailed plan this year.
But the report calls for stronger governance arrangements across the region, as well as a comprehensive spatial strategy outlining where housing, laboratories and commercial space will be prioritized – and how the supporting infrastructure will be delivered.
The report, produced with the Center for Business Research at the University of Cambridge, shows that economic growth is already spreading beyond Oxford and Cambridge to places such as Milton Keynes and Stevenage, which is home to a major GSK research site.
The corridor now hosts approximately 3,000 knowledge-intensive firms, employing 152,000 people and generating £45bn in annual revenues. Employment growth has outpaced the UK average over the past decade.
AstraZeneca UK chairman Shaun Grady said East West Rail was “vital infrastructure” needed to connect campuses, laboratories and cities into a single talent market and more quickly convert scientific progress into economic growth.
Nick Pettit, senior partner at property consultancy Bidwells, said the rail link was the “missing piece” and said the government should provide planning certainty and accelerate the delivery of housing and workspace along the route.
A Department for Transport spokesperson said East West Rail remains a “catalyst for growth”, adding that officials are examining how recent planning reforms can be used to deliver quick benefits.
If completed, the line is expected to reduce journey times between Oxford and Cambridge from around three hours to more than 90 minutes – a change businesses say is necessary if the UK is serious about creating a globally competitive innovation corridor.