Oxford – Unlocking the UK’s potential

Globally over the last decade, there has been an increasing trend towards more active and interventionist industrial policies: China (Made in China 2025), the United States (Inflation Reduction Act and the CHIPS and Science Act) and the European Union, both at the EU-level and within member states. Trump’s second presidency, however, represents a seismic change in approach to US industrial policy that is having repercussions globally.

In October 2024, the government published Invest 2035, a green paper detailing proposals for a modern industrial strategy. The industrial strategy forms part of the government’s mission to achieve the highest rate of sustainable economic growth in the G7.

There is much general optimism about the forthcoming UK industrial strategy, although the changing global economic context and the tight fiscal backdrop means there are concerns there could be a mismatch between business and industry expectations and what the strategy can deliver.

Few were surprised when the Housing and Planning Minister, Matthew Pennycook, re-launched The Oxford-Cambridge Corridor, appointing Lord Patrick Vallance as the Corridor Champion. Government claims the development of business, tech, transport, and housing between these two university cities would boost the UK economy by up to £78bn and make it one of the most innovative and economically dynamic areas in the world.

Emily Slupek’s article below explores the potential of the Oxford end of the Corridor. So far Government has:

• Announced a new Oxford growth commission. 
• Identified Oxfordshire’s Culham Campus as the country’s first AI growth zone. 
• Accelerated phase 2 of East West Rail, connecting Oxford to Bedford from 2030. 
• Agreed water companies’ resource management plans, unlocking £7.9 billion of investment in the next five years for projects including Abingdon reservoir.

A campaign led by ARC Oxford, the Ellison Institute of Technology, and The Oxford Science Park has been launched to re-open the Cowley Branch Line. This is aimed at ensuring this transport link is prioritised in regional infrastructure planning.

Also this year, the government will publish three important new plans: the NHS 10-year plan, the industrial strategy, and a life science sector plan. This provides an unprecedented opportunity to align government plans for growth with Oxford’s potential. 

In light of the recent change in government, Labour leaders are eager to leave their mark on the economy, with a sharp focus on growth. This ambition has sparked a flurry of new strategies, policies, and promises aimed at boosting the UK’s thriving science and technology sector. But are these changes truly revolutionary, or are they simply rebranding old ideas? And what is at stake for Oxford in this shifting landscape? As Einstein famously proclaimed, insanity is doing the same thing repeatedly while expecting different results. We take a closer look at the government’s latest moves and consider whether they are insanity or inspirational for Oxford and the UK’s innovation economy.

In October of last year, the government launched its industrial strategy, identifying key areas for improvement. Among its goals were the commercialisation of more UK-based R&D and the need to unlock investment capital for higher-risk ventures. The strategy also emphasised providing targeted support to ‘growth-driving sectors,’ many of which align with Oxford’s strengths, such as life sciences, digital technology, clean energy, and advanced manufacturing. These sectors are crucial to the UK’s innovation economy and its commercialisation ambitions.

To stimulate growth, the strategy proposes regulatory and structural changes aimed at unlocking more capital from pensions, making it easier to fund higher-risk ventures like science and technology. This is essential for fostering continued growth in innovation in the UK, unlocking the potential for science companies and encouraging their pursuits towards a commercialised product.

Following the release of the industrial strategy, the government aimed to further facilitate growth and development by proposing reforms to the National Planning Policy Framework (NPPF) and introducing a Devolution White Paper. These changes are designed to streamline the planning process, and both create and empower strategic authorities to make more cohesive, area-specific decisions.

Historically, the planning process has posed a significant risk for developers, with resultant changes to designs and massing potentially impacting project viability. The uncertainty surrounding approval parameters and the lengthy process to secure planning decisions have long been obstacles to development. However, the need for a robust planning system to safeguard the built environment, preserve heritage, and align with the area’s overall vision is widely acknowledged.

The proposed planning reforms aim to foster better collaboration, reduce approval timeframes, and place greater emphasis on critical infrastructure projects – moves that developers are likely to welcome. At the same time, these reforms seek to maintain necessary oversight and control over the local built environment.

In parallel, the Devolution White Paper calls for the establishment of broader combined strategic authorities, granting them more autonomy in decision-making.

In contrast to Cambridge, which has a directly elected mayor, Oxford is currently a non-mayoral city composed of several local authorities with varying political leanings, leadership styles, and strategic priorities. The government’s latest devolution plans could reshape the public sector governance structure in Oxford, potentially introducing a mayor in the future and creating a more unified approach to local governance.

The proposal to grant more autonomy to mayoral and strategic authorities, along with a reduction in bureaucracy, has the potential to significantly enhance efficiency. If implemented effectively, these changes could allow for better prioritisation of local needs, empowering leaders to drive meaningful solutions and improvements tailored to the specific needs and potential of their communities.

“There is a potential opportunity here for Oxford to put forward a strategic vision to enable decisions to be made about infrastructure investment and the supporting elements required to realise its full potential as a key hub of economic growth” says Emma Andrews (Savills Planning Director and Divisional Science Lead).

Sarah Haywood (Managing Director of Advanced Oxford) warns, “From an Oxfordshire perspective, what we absolutely need to see is that it progresses, and it does not drag on for a long time, with disagreement on what the landscape looks like and the different geographies, for example. If we get all of our local government mired in years of reorganisation, then that is not going to help us with our growth”.

Ben Copithorne (Managing Director of Camargue) commented “My hope is that there can be a sensible response to it that ultimately does create a better mechanism than the one we’ve got at the moment, because we have too much of a disconnect between the local authorities, the partners and the neighbours. I think that is a barrier. But, if I am being positive about it, this is a great opportunity to rescope”.

In late March 2025, Oxfordshire proposed three options for the strategic authority boundary for consideration, with the restructuring targeted to complete in 2028.

Early this year, Rachel Reeves attended the Siemens magnet technology manufacturing facility in Oxfordshire to reiterate the government’s commitment to key strategies and announce measures pertinent to the support of Oxford’s and the Oxford-Cambridge Growth Corridor’s growth and development.

Among the most notable announcements were efforts to eliminate barriers to valuable real estate development, including addressing infrastructure issues, reducing judicial review delays, and streamlining the planning process through the introduction of the Planning and Infrastructure Bill in spring 2025.

Reeves also proposed reducing environmental requirements for developers contributing to the Nature Restoration fund instead, “so they can focus on getting things built and stop focusing on the bats and the newts".

Simplifying some of the current barriers to development will help drive growth, as real estate plays a crucial role in this process. Without the right physical spaces in the right locations, growth will inevitably plateau.

In addition to these reforms, Reeves pledged the creation of a Growth Commission for Oxford. Sarah Haywood expressed confidence that this commission would be a positive measure for Oxford and should help identify and prioritise the issues necessary to support Oxford’s continued role as a hub of innovation. She noted, “There is a set of issues that need to be addressed for Oxfordshire, and I think that is now fairly well understood. Collectively, it is recognised that wastewater, water, power, and transport infrastructure require attention. The clear commitment to East-West Rail is really positive for Oxford, but we also need to see some of the other rail infrastructure, such as the Cowley branch line, supported to really capitalise on that”. 

The government committed to key infrastructure projects, including East-West Rail and road improvements between Milton Keynes and Cambridge. These initiatives aim to support the growth of new communities along the Ox-Cam corridor, but much work remains to ensure that basic utilities can keep pace with the region’s expansion.

In her speech, Reeves advised a £7.9 billion investment in water resource management across the Growth Corridor, leaving critical wastewater and power issues unaddressed.

Since then, movement has been seen in respect of wastewater, with the recent Environment Agency approval of plans to upgrade the sewage works, unblocking pipeline developments that were hampered by onerous planning conditions or held without planning approval. The initial phase of upgrade works is due to complete in 2027, with the final solution by 2031.

Furthermore, at the end of March, SSEN announced an investment of £200m to upgrade Oxfordshire’s power capacity to support the growing needs of the area, with works due to commence as early as spring this year.

A campaign has also been launched to promote the reopening of the Cowley Branch Line, so this too is gaining traction.

Oxford is finally experiencing some promising developments in respect of its infrastructure woes. Reeves highlighted the potential of the Ox-Cam growth corridor to become Europe’s ’Silicon Valley’, with aspirations for it to contribute an additional £78 billion to the UK economy.

Andrews emphasised the need for strategic planning along the Growth Corridor to ensure that the centres of excellence, in Oxford and Cambridge, are not diluted, “putting the right things in the right places is critical to the successful growth of the area, be that housing, amenities or commercial buildings. Fundamentally, it is about using the areas of the Ox-Cam Growth Corridor in the logical way, in a strategic planning context, giving it the best chance for success”.

Ben Copithorne echoed this sentiment, stressing the importance of working together to realise the region’s full potential. Despite past challenges, the opportunity for growth is undeniable, and with the right leadership, progress is possible.

Lord Vallance, the newly appointed Ox-Cam Growth Corridor champion and Science Minister, will play a critical role in driving these efforts. With direct access to key decision-makers like the Chancellor of the Exchequer and the Deputy Prime Minister, his appointment signals strong prioritisation of the region’s development.

As the UK science economy continues to evolve, the government’s new initiatives, combined with the lessons learned from previous efforts, offer a more optimistic path forward for Oxford and the surrounding areas.

In conclusion, the government’s recent strategies, including the industrial strategy, planning reforms, and devolution white paper, offer a promising vision for Oxford’s growth and its role in the Ox-Cam Growth Corridor. While these changes aim to help support the thriving science and technology sectors, they are not without challenges.

The commitment to major infrastructure projects like East-West Rail, alongside the establishment of a Growth Commission for Oxford, is a positive step for growth. However, infrastructure challenges, particularly relating to utilities, continue to pose significant barriers to development in the shorter term. The proposed upgrades to power and wastewater infrastructure must be delivered within the suggested timeframes to provide developers with the confidence and certainty needed to ensure that the development pipeline is not further delayed.  The proposed reforms, including simplifying planning processes, enhancing local governance and supporting key industries, provide potential for Oxford to further its position as a leader in the UK’s innovation industries and a contributor to economic growth.

Strategic planning will be essential to ensure that development aligns with the region’s long-term goals, placing key sectors and infrastructure in the right locations to foster success.

While optimism surrounds the government’s plans, the real test will be in execution. Strong leadership and effective collaboration between local authorities and national government will be crucial to realising the potential of Oxford and the surrounding areas. With the right approach, the Ox-Cam Growth Corridor could emerge as an even more powerful engine for economic growth and technological innovation, propelling the UK to new heights on the global stage.

_{Read the articles within Life Sciences: Trends & Outlook report below}