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Government has ‘received proposals for new towns’ along East West Rail line, Chancellor Rachel Reeves confirms




Proposals have already been put forward to build new towns along the East West Rail line, the Chancellor Rachel Reeves has said.

Ms Reeves included the proposals in a speech on Wednesday (January 29) in Oxfordshire, where she announced plans for an Oxford-Cambridge growth corridor.

Chancellor Rachel Reeves has laid out fresh plans to grow the economy Picture: Peter Cziborra/PA
Chancellor Rachel Reeves has laid out fresh plans to grow the economy Picture: Peter Cziborra/PA

She said the area has the “potential to be Europe’s Silicon Valley” and could add up to £78billion to the UK economy by 2035.

However, the Chancellor said there were “far too many supply side constraints on economic growth” in the region, which she said the government would fix.

Ms Reeves said new homes and improved transport infrastructure between the two cities were needed.

She said: “This area has the potential to be Europe’s Silicon Valley.

“To make that a reality we need a systematic approach to attract businesses to come here and to grow here.

“At the moment it takes two-and-a-half hours to travel between Oxford and Cambridge by train, there is no way to commute directly by rail from places like Bedford and Milton Keynes to Cambridge. And there is a lack of affordable housing right across the region.

“In other words, the demand is there but there are far too many supply side constraints on economic growth here, we are going to fix that.”

Ms Reeves confirmed funding for East West Rail, which aims to create a direct railway line between Oxford and Cambridge.

She said East West Rail will support “vibrant new and expanded communities along the route”.

The Chancellor said: “We have already received proposals for new towns along the new railway, with 18 submissions for sizable new developments.”

She also announced that the building of a new East Coast Mainline station at Tempsford will be accelerated by three to five years.

The government said the station will link services directly to London and will eventually also be an interchange with the East West Rail station at Tempsford.

Upgrades to the A428 (Black Cat to Caxton Gibbet) were also highlighted in the announcement, which aim to try and improve journey times between Milton Keynes, Bedford and Cambridge.

The scheme is due to see a new 10 mile dual carriageway built, as well as three grade separated junctions, three tier at Black Cat roundabout and two tier at Cambridge Road and Caxton Gibbet junctions.

Main construction began in December 2023 and the road is expected to open in 2027.



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