Rachel Reeves to boost UK economy by £78 million by 2035
Chancellor Rachel Reeves announced a new plan to unlock the potential of the Oxford-Cambridge Growth Corridor, projected to add £78 billion to the UK economy by 2035.
The government pledges support for infrastructure improvements, including new transport links, housing developments, and investment in water and AI sectors, clearing the way for, 4,500 new homes
Plans aim to strengthen the UKs leadership in key industries such as life sciences, AI and advanced manufacturing, through new funding and new growth commission.
Reeves comments: "Britain has huge potential, but for too long that potential has been held back. The Oxford-Cambridge Growth Corridor is a critical part of our Plan for Change, and together we will create the right conditions for economic growth, innovation, and prosperity across the UK."
Moderna has invested £1bn in Harwell, Oxfordshire, to strengthen the UK's position as a global leader in biopharmaceutical innovation.
Additionally, new funding for a cancer research hospital as part of the NHS's New Hospital Programme further bolsters the regions life sciences capacity.
CEO of Investigo, part of The IN Group, Richard Eardley comments: "The development of AI and advanced manufacturing will require a workforce capable of meeting the demands of cutting-edge technologies. We need to ensure that regional tech hubs are supported by strong educational foundations and accessible skills programs that can nurture local talent, retain graduates, and reduce the reliance on talent from outside the region."
Arjun Mahajan, Chief for Client Partnerships at AND Digital commented: "The UK has the potential to be a global leader in AI and technology, but investment alone won't achieve this, we need talent, infrastructure and bold action. The focus on AI Growth Zones and innovation hubs is a strong start but the real challenge comes from building a highly skilled workforce to drive this change.
"Businesses must take a people AND innovation approach to drive skills training, from early careers to mid-career switchers in order to attract and develop talent. The UK must move fast to create a system where AI Accelerator Programmes enable companies of all sizes to thrive, because in the race for AI leadership, standing still means falling behind."
Reeves said that this Oxford-Cambridge growth corridor has “the potential to be Europe’s Silicon Valley.” However, Ivan Nikkhoo, Managing Partner at Navigate Ventures argues that while every senior UK politician seems to harbour the same aspiration, this is a tired and overused cliche; but creating the next great local ecosystem is a laudable and eminently achievable ambition.
He notes: "History shows that successful tech ecosystems aren’t built overnight or by government decree. Silicon Valley’s dominance is the result of decades of organic growth, driven by an unparalleled concentration of capital, talent, and infrastructure.
The UK lacks the later-stage growth capital needed to compete with Silicon Valley. For example, Silicon Valley has five times more VC funds and raises seven times more capital than London, and from 2017-2023, Silicon Valley saw $650bn in startup exits, while London had only $60bn.
“Instead of chasing an unrepeatable model, the UK should focus on building the best possible version of its own ecosystem: one that attracts high-quality investors, supports startups at every stage, and removes friction for scaling businesses.
“Emerging UK hubs have enormous potential, but their success will depend on fostering an environment where talent and capital can thrive naturally – rather than trying to manufacture a Silicon Valley clone."