Oxford: Growth corridor to Cambridge is 'next economic powerhouse'

The economic contribution of the Cambridge – Milton Keynes – Oxford Growth Corridor to the UK’s post-Brexit economy could reach £400 billion by 2050, latest research reveals.

But delivery of a planned Expressway Road and a re-opened Varsity Line linking the region’s economic centres is essential to maintain the impressive growth seen in the Corridor since 2013.

The Corridor’s economy would grow to £400b if it continues expanding at the pace of recent years, said 179-year-old property consultants Bidwells, the only multidisciplinary property and land consultancy with offices in Cambridge. Oxford and Milton Keynes.

The Corridor’s Gross Value Added (GVA) will surpass £300b by 2050, even if the region’s growth slowed below the long-term average rates seen since 1998, said Bidwells’ economic analysts. 

Patrick McMahon, Bidwells senior partner, said: “The Growth Corridor is the UK’s next economic powerhouse. This knowledge-intensive region is already big on ideas but is set to become much bigger in economic value too. 

“Bold leadership from government ministers and a commitment to expediently delivering the Expressway and East-West Rail is essential, however, to ensure the long-term growth potential of the corridor is fully realised.” 

Bidwells’ latest Growth Corridor research looked at a National Infrastructure Commission (NIC) -defined Growth Corridor area and the latest ONS statistics (2016) and found the corridor delivered a GVA of £105b in 2016 and is likely to surpass £113b by the end of 2018. The corridor has grown by an average of 4% a year since 1998.

The NIC reported to Government in Autumn 2017 that the Growth Corridor area generated £90b per year for the national economy but said this could surpass £250b a year by 2050 with new investment in road and rail infrastructure, estimated by the independent advisory body in 2017 to cost £7b.

Should growth continue at the long-term average rate of 4% the corridor’s GVA will reach £398b in 2050, found Bidwells’ researchers.

Sue Foxley, Bidwells research director, said: “With one million new homes jobs proposed for the corridor, significant infrastructure investment is required now to ensure the economy pushes to the top of our forecast.

“The Government’s Industrial Strategy puts this region at the heart of the UK economy but infrastructure investment, in the right places, must follow to facilitate this impressive rate of growth in a post-Brexit world.”