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The Oxford-Cambridge Arc: Growth at a political crossroads

Written by

Alexander Nicholson

As the May 2025 local elections approach, the Oxford-Cambridge Arc, a key corridor linking the renowned university cities of Oxford and Cambridge and home to industries like AI, advanced manufacturing, and life sciences, is emerging as a political battleground. Backed by the Labour Government as a national priority, this ‘growth corridor’ is central to reshaping the region’s economy and housing landscape. However, with rising opposition from local communities, particularly in traditionally Conservative and Liberal Democrat strongholds, these plans face a critical test at the ballot box.

Economy: Growth or overstretch?

Stretching 100 miles from Oxford to Cambridge and including towns like Milton Keynes, Peterborough and Bedford, the Oxford-Cambridge Arc has long been seen as an economic powerhouse. Labour’s vision for the Arc includes developing a dedicated spatial framework to help coordinate the area’s infrastructure, environment, and new housing. A significant proportion of Labour’s 1.5m new homes and a potential new town could also be delivered in the area, alongside high-tech industries like green energy and life sciences. This ambitious plan is expected to generate up to £78 billion in economic output over the next decade. However, while some see this as a vital opportunity to create the ‘Silicon Valley of the UK’ to secure high-skilled jobs and drive economic growth, many locals are wary of the increase in commercial development and the increase of residential homes and traffic issues as a result. The concern is that the pace of growth may outstrip the region’s ability to accommodate the change, given concerns about the limited infrastructure and pressure on existing services.

For developers, this presents an opportunity to lead on thoughtful, integrated masterplanning that reflects community priorities, helping to secure local buy-in and smooth the path for long-term development.

Placemaking: Balancing growth with community identity placemaking

Labour seeks to create vibrant, sustainable communities that integrate housing and industry, transforming the Arc into a global hub for business and technology. However, for many residents, particularly in Oxfordshire, Buckinghamshire, and Cambridgeshire, large-scale housing projects and high-tech hubs threaten to disrupt rural landscapes and local identities. Communities fear their towns and villages could be overrun by urban sprawl, eroding the region’s character. The challenge for Labour will be to show how these developments can enhance, rather than undermine, the places people call home.

There is an opportunity for developers who prioritise thoughtful design, local character and amenities that provide social value that is integrated in the communities to be best placed to gain long-term backing.

Connectivity and Infrastructure: Meeting growth demands amidst upcoming elections

A key part of the Oxford-Cambridge Arc’s growth strategy is expanding transport links and public services. However, with significant new housing developments, there are growing concerns about overcrowding and strain on local resources, particularly in areas like Milton Keynes and Oxfordshire. Local authorities worry about the pressure on schools, healthcare, and roads, while the expansion of industries, such as data centres, could add complications due to their high energy demands. The recent approval of projects like the expansion of Luton Airport has also sparked local protests over potential environmental and infrastructure impacts. As local elections in the Arc approach, candidates will need to address how they plan to balance rapid development with sustainable infrastructure growth, ensuring the region’s services are not overwhelmed and that residents’ quality of life is maintained.

By delivering infrastructure improvements through mechanisms like CIL contributions, developers can play a key role in easing pressure on local services and building stronger relationships with communities.

Environment: Protecting the Greenbelt

One of the most contentious issues surrounding the Arc’s development is its potential environmental impact. The plan to build large numbers of homes, alongside expanding the high-tech sectors, will inevitably require the use of greenbelt land. Many local communities fear that the loss of these natural spaces could harm the environment and diminish the quality of life in the region. Labour argues that the development is necessary to meet the housing needs of a growing population and to drive economic growth. However, local residents are increasingly vocal about their concerns, with many worrying that the environmental costs of development may outweigh the potential benefits.

Where development on the Greenbelt is necessary, building a strong narrative and clear needs case is essential. By prioritising biodiversity, sustainable design and green buffers, developers can help mitigate concerns and demonstrate a commitment to environmental stewardship.

National ambition vs local concerns

While the Labour Government views the Oxford-Cambridge Arc as a key economic driver, local communities, particularly in Conservative and Liberal Democrat areas, remain deeply divided over its impact. Many residents feel their concerns about environmental damage, infrastructure strain, and the loss of green spaces are being ignored in favour of national economic priorities. This tension between national ambition and local resistance is likely to be a significant issue in the upcoming elections.

The Oxford-Cambridge Arc has already been the subject of political debate, with a similar plan proposed under the Conservative government, which was shelved in 2021 due to local opposition over environmental and rural disruption. Now, Labour’s version of the plan, which includes high-tech industry hubs alongside housing, aims to drive economic growth and job creation. However, local concerns remain strong, particularly in Milton Keynes, Oxfordshire, and Bedford, with residents fearing that the government’s growth plans could undermine the region’s long-term sustainability.

The 2025 local elections: A crucial test for Labour

This year’s local elections will serve as a crucial test for Labour’s plans for the Oxford-Cambridge Arc. While Labour pushes for ambitious growth, including infrastructure and housing developments, local opposition is growing. Many Conservative, Reform and Liberal Democrat candidates may view this as an opportunity to oppose the Labour Government’s national growth mission, particularly in areas like Buckinghamshire and Oxfordshire who are concerned around loss of greenbelt land, and strain on public services, and those in Cambridgeshire who are annoyed with Labour’s decisions to overturn council rejections on infrastructure projects. The Conservatives remain strong in rural areas, focusing on protecting communities from large-scale development. Reform UK is also gaining traction among voters frustrated by top-down planning, while the Liberal Democrats in Oxfordshire and Cambridgeshire stand against such projects. The Green Party will focus on increasing their vote share on Oxfordshire County Council to gain a louder voice in ensuring that housing developments are matched with the infrastructure needed. The outcome of these elections will determine if Labour can win local support or if resistance will force a rethinking of the plans.

This will be a key moment in the region’s political landscape, revealing whether national ambitions can align with local concerns. Over the coming weeks, JBP Communications will monitor these elections closely, providing insights into their impact on growth, housing, and infrastructure in the region. Our team has extensive experience in the Oxford to Cambridge area, working across infrastructure, development, and commercial sectors.

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