The Chancellor has announced that the Environment Agency has lifted its objections to a major new development around Cambridge, paving the way for 4,500 new homes. This project will also include essential community infrastructure such as schools, leisure facilities and office and laboratory space in Cambridge city centre. The decision was made possible through close collaboration between the government, local councils and regulators to find innovative solutions that support growth and environmental sustainability.
To further support expansion, the government has committed £7.9 billion in water infrastructure investment over the next five years. This funding will enable water companies to improve supply and resilience, including the construction of nine new reservoirs. Among these is the Fens Reservoir, which will serve Cambridge. These projects will help address long-term water security and support sustainable growth.
Transport improvements are also a key priority in the Chancellor’s announcement. Funding has been confirmed for East West Rail, and the A428 upgrade will reduce journey times between Milton Keynes and Cambridge, improving connectivity and easing congestion across the Oxford-Cambridge corridor.
The Chancellor has also prioritised the creation of a new Cambridge Cancer Research Hospital, which will form part of the New Hospitals Programme. A collaboration between Cambridge University, Addenbrooke’s Hospital and Cancer Research UK, this state-of-the-art facility will drive forward pioneering cancer treatment and medical research, strengthening Cambridge’s global reputation in healthcare innovation.
Further investment will go towards the development of new and expanded communities within the Oxford-Cambridge Growth Corridor. This includes the establishment of a new East Coast Mainline station in Tempsford, which will support economic expansion in the area by improving transport links and accessibility.
Recognising Cambridge’s global leadership in science and technology, the Chancellor has welcomed Cambridge University’s proposal for a large-scale innovation hub in the city centre. As one of the world’s most concentrated science and technology clusters, Cambridge will play a crucial role in the government’s modern Industrial Strategy, helping to drive investment in high-growth sectors such as artificial intelligence and life sciences.
Finally, the Chancellor has confirmed the appointment of Sir Patrick Vallance as Oxford-Cambridge Growth Corridor Champion. In this role, he will provide senior leadership to help deliver the government’s vision for the corridor, ensuring that the full economic potential is realised.
Welcoming the announcements, Daniel Zeichner MP said:
"This is a really important moment for our city - these commitments from the government represent a significant step forward for Cambridge as well as signalling real change for the wider region and the country. Investment in transport, housing and research facilities will strengthen our city’s position as a global leader in science and technology while also unlocking a huge opportunity for local people to benefit from the region’s growth.“It is crucial that we get the balance right - development must be sustainable, and infrastructure must keep pace with demand. I will continue to push for further investment in public transport, water security and affordable housing to ensure Cambridge remains a great place to live and work."
