In a speech in Oxfordshire, chancellor Rachel Reeves outlined plans to create an ‘Oxford-Cambridge Growth Corridor’ with the aim of generating £78bn for the economy.

This will involve investing in infrastructure and housing between these two cities to create “Europe’s Silicon Valley”.

In her speech, Reeves said one of the challenges in the area was a lack of affordable housing.

“To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area,” said Reeves. “But to get from Oxford to Cambridge by train takes two and a half hours.

“And there is a lack of affordable housing across the region. Oxford and Cambridge are two of the least affordable cities in the UK. In other words, the demand is there but there are far too many supply side constraints on economic growth in the region.”
The Environment Agency had specifically objected to the development around Cambridge which could deliver 4,500 homes.

According to the government, negotiations between councils and regulators have achieved “creative solutions” that “address environmental pressures”.

DFT has contacted the Environment Agency to find out more.

An Environment Agency spokesperson commented on the decision to lift the objection:  “We have a critical role in supporting the delivery of the Government's sustainable growth agenda by helping Local Authorities to meet housing targets and make informed environmental decisions.

“Since we were first consulted on Cambridge Water’s development plans, partners have significantly addressed our concerns over water scarcity. On this basis we removed our objection to the proposed development.

“Water scarcity remains a challenge for Cambridge and we will continue to work alongside partners to ensure that development is sustainable, and can deliver a reliable, clean and plentiful water supply for the environment and future generations.”