BUDGET 2017 The government will back the recent National Infrastructure Commission report on the Cambridge-Milton Keynes-Oxford corridor, exclusively revealed by EG last week.
The report calls for a joined-up approach to double the amount of housebuilding across the region, with new infrastructure including road and rail linking Oxford, Milton Keynes and Cambridge. New garden towns are proposed along the route, benefiting from the increased accessibility.
However, details on the long-term funding, and a lack of changes around compulsory purchase orders to capture the uplift in land values, will have frustrated some.
Commenting on the proposals, Patrick McMahon, senior partner at Bidwells, said: “It is a joy to see the Golden Triangle (Oxford, Cambridge and London) front and centre of the Budget speech today. The support for the Cambridge-Milton Keynes-Oxford corridor will unlock further growth in a region that is already one of our most productive, and make a major contribution to solving the housing crisis.
“With the Budget also referring to increasing productivity, especially around new and emerging technologies, the high-tech industries around Cambridge and Oxford are a clear opportunity for further growth.
“Those living and working in the Golden Triangle have been seizing opportunities for decades, but with this promise of further infrastructure investment in our region it will continue to lead the chancellor’s technological revolution” said McMahon.
■ See also: Will Budget risk backing the brain belt
Cambridge-Milton Keynes-Oxford corridor in detail
Housing
Chancellor Philip Hammond said: “We commit to building up to 1m homes by 2050. To do this the government will consider significant new settlements and the potential of development corporations to deliver these using private finance.”
A housing deal with Oxfordshire for 100,000 homes by 2031 was also announced, along with a deal to work towards the adoption of a new joint statutory plan. In return Oxfordshire, will receive a package of government support over the next five years, including £30m a year for infrastructure and further support for affordable housing and local capacity.
Deals for the Central and Eastern sections are ongoing, with commitments hopeful for 2018.
Rail
A new East West Rail Company is being established to accelerate delivery of a central section between Bedford and Cambridge, aiming for completion by the mid-2020s and leveraging private sector investment. By 2024 the western section of East West Rail will be complete, allowing services between Oxford and Bedford, and Aylesbury and Milton Keynes.
Road
Construction will begin on key elements of the expressway between Cambridge and Oxford in the second Roads Investment Strategy. The government will also accelerate work on the “missing link” elements of the expressway so that it is ready to open by 2030.
Land value uplift
The government expects authorities and delivery bodies across the “growth corridor” to use existing mechanisms of land value capture and the new powers (subject to consultation) announced at the Budget to capture rising land values from the additional public investment.
The government will also encourage authorities to explore the introduction of a Strategic Infrastructure Tariff, in addition to the Community Infrastructure Levy, supported by appropriate governance arrangements. These approaches will require developers to factor their contributions towards infrastructure into the values they pay for land.
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