Rachel Reeves has unveiled a series of major announcements aimed at boosting the UK’s infrastructure and economy, including plans for a new ‘Silicon Valley’ between Oxford and Cambridge.
Rachel Reeves has outlined a series of significant announcements aimed at boosting the UK’s infrastructure and economy. The key points include:
Infrastructure Development
The government is backing plans to build a third runway at Heathrow Airport, which could create 100,000 jobs. ‘We will only sign off on this project if it meets strict environmental and climate objectives,’ Reeves has promised. The plans have been stuck in limbo since 2018 due to legal challenges.
Reeves also announced plans to expand City Airport and Stansted Airport around London, as well as a decision to expand Luton Airport and build an emergency runway at Gatwick Airport. The government will work with local authorities to reopen Doncaster Sheffield Airport, aiming to turn it into a thriving regional hub.
A new partnership between Prologis and Manchester Airport Group will build a new advanced manufacturing and logistics park, resulting in £1bn of investment and 2,000 jobs.
‘Silicon Valley’ Initiative
Reeves vowed to build ‘Europe‘s Silicon Valley‘ between Oxford and Cambridge, with policies aimed at boosting the region’s growth. The initiative is expected to add £78bn to the UK economy in the next 10 years.
Silicon Valley is a region in California's San Francisco Bay Area, known for its high concentration of tech companies and startups.
The valley's name originates from the former silicon chip factory in Stanford Industrial Park.
By the 1970s, Silicon Valley had become a hub for innovation, with companies like Intel and Hewlett-Packard leading the way.
Today, it is home to industry giants such as Google, Apple, and Facebook, and continues to be a driving force behind technological advancements.
Funding has been confirmed for transport projects, including new services on an East-West Rail line beginning this year. Reeves also promised an upgrade on the A428 between Milton Keynes and Cambridge.
The University of Cambridge will open an innovation hub in the city centre, built alongside 4,500 new homes and schools. Approvals for new towns are expected soon, with 18 submissions for sizeable new developments already received.
A new Cambridge Cancer Research Hospital will also be prioritised, with Lord Patrick Vallance overseeing the project.
Water Reservoirs
The government has approved £7.9bn in investment for water companies to build nine new reservoirs, including a new Fens Reservoir to serve Cambridge and a new Abingdon Reservoir near Oxford.
Changing Infrastructure Rules
Government guidance on building major projects will be reviewed to support investments outside of the wealthy and productive south-east of England. This means that investment in all regions is given a fair hearing by the Treasury, led by Reeves.
This change will work alongside other major changes set out in the government’s upcoming Planning and Infrastructure Bill.
Redevelopment of Old Trafford
The redevelopment of Manchester United‘s Old Trafford football stadium is expected to benefit from the plans. The club is set to make a decision on whether to redevelop the existing stadium or build a brand-new 100,000-capacity ground.
Trade Trips and National Wealth Fund Investments
Reeves announced that the government will be hosting a range of trade trips, including a trip to India next month for trade talks. The UK is also resetting its relationship with the EU, which Reeves said was in the national interest.
The government will invest £65m in electric vehicle charging company Connected Kerb project and £28m in Cornish Metals, which provide the raw material for solar panels, wind turbines, and electric vehicles.
Lower Thames Crossing
Reeves mentioned the new Lower Thames Crossing, the UK’s largest road tunnel, which will link Tilbury in Essex and Gravesend in Kent. The £9bn tunnel under the Thames river is expected to be one of the most expensive infrastructure projects in British history.
The government is exploring how to finance it privately, with the private sector potentially taking on a significant role in funding the project.
Investment Across the UK
While most of the announcements were focused on England, Reeves said that the government was working with devolved governments to ensure the benefits of growth can be felt across Scotland, Wales, and Northern Ireland.
- bbc.com | At a glance: What was in Rachel Reevess speech?
- www.bbc.co.uk | At a glance: what was in Rachel Reeves speech? BBC News
