Going for growth: Chancellor’s plans are welcome but clarity needed

Last week (29^th January), Chancellor Rachel Reeves vowed to go further and faster to kickstart economic growth as she spoke at Siemens Healthineers in Oxfordshire.

Included in her growth plans was the announcement of plans for a third runway at Heathrow, and news of the Oxford-Cambridge Growth Corridor.

With offices based in Heathrow and Oxford, David Barden, Regional Managing Partner for the Thames Valley, together with Partner Guy Parkes, chatted to UK Property Forums about what the announcements could mean for the Thames Valley region and wider UK.

According to David, the Chancellor’s support for a third runway at Heathrow is good news for the economy and the property market, particularly in the South East and Thames Valley region:

“Heathrow is a key driver of regional and national growth, yet it has long operated at near capacity, leaving it with limited resilience when delays and incidents occur.

“By comparison, other major European airports have greater capacity and more flexibility, making them more attractive for international businesses—particularly those reliant on freight.”

Without additional runway capacity, David warns that the South East risks falling behind – both in attracting global investment and capitalising on emerging market opportunities.

“The economic impact of a third runway will be significant, helping to make the Thames Valley even more attractive to investors and international businesses. Without we risk missing out on market opportunities.

“The promise of a third runway could drive further demand for logistics space around the airport, as well as additional office and residential accommodation in the wider markets, creating potentially tens of thousands of new jobs.

However, there is some concern over the time it could take to deliver on such a promise, as David explains:

“Businesses are going to need certainty on timelines. This project has long been discussed and, whilst the Government announcement is positive, it could still take years – potentially decades – to come to fruition, and without clarity on delivery, long-term planning for businesses and investors becomes difficult and the economic growth is held back.

“There are also questions around the infrastructure required to support growth, particularly in terms of industrial land supply, energy demands, and planning restrictions.

Meanwhile, a hour up the M40 towards Oxford, there is yet more to feel positive about, as Agency Partner, Guy Parkes, explains:

The Chancellor’s support for the Oxford-Cambridge corridor in her speech is welcome news, as improving connectivity between these cities does hold significant potential to unlock economic growth for the South East and the UK as a whole.

Dubbed ‘Europe’s Silicon Valley’ by the Chancellor, the proposed corridor could bring Oxford and Cambridge’s world-class universities, thriving life sciences sectors, and cutting-edge technology industries together, according to Guy.

“By creating new transport links and infrastructure, this initiative could create a larger, more globally competitive region for these sectors—one that attracts increased international investment, growth and demand for commercial property such as offices, labs, and industrial units.

“Paired with the proposed expansion of Heathrow and the additional capacity a third runway will bring, the South East could strengthen its position as a hub for global business and innovation.

While the Government has signalled its intent to improve transport and housing between these two hubs, the details of this support remain unclear.

Guy continues: “For the initiative to be truly successful, we need more investment in infrastructure upgrades—particularly in places like Oxford—alongside planning reform to encourage private sector development.

“A dedicated rail link between Oxford and Cambridge has been discussed for years but has yet to materialise. To fully unlock the corridor’s potential, a comprehensive rail network, potentially including new stations in Oxford, will be crucial.

“Without this, the opportunity to create a thriving economic corridor that can compete on a global stage may be missed.”

As ever, we will continue to monitor developments in relation to both these Government growth initiatives, to keep you informed about their potential impact.