Treasury minister backs ‘one of the world’s greatest economic opportunities’

Late last year EG staged an event examining prospects in the growth corridor between Oxford and Cambridge. Among the speakers was government minister Robert Jenrick, exchequer secretary to the Treasury (pictured at the event). Jenrick told a packed audience that the corridor – or Oxford-Cambridge Arc, as it is now known – was “not just one of the greatest opportunities in the UK, but one of the world’s greatest economic opportunities”. With another issue dominating government thinking these days, EG wanted to ensure that what Jenrick described as a “national priority” did not slip off the radar. In partnership with Bidwells, we brought together speakers from the event and other parties to focus in on the key issues raised on the day. We put those to Jenrick in January and, despite the turmoil at the heart of government, you can see from his reply last month that ministers are determined to ensure the Arc is positioned “as a world-leading economic place”. EG will hold ministers to that. We are staging a follow-up event at the Francis Crick Institute in King’s Cross later this year. And we will be looking for progress. Here’s where EG wants to see progress made – progress Jenrick commits the government to making. Main image: Ed Telling This is an extract from the letter sent by Damian Wild, editor in chief of EG, to Robert Jenrick in January 2019 Dear Minister Many thanks again for speaking at the Growth Corridor event. We, and the audience, appreciated your attendance and hope you came away as inspired about the opportunities as we were. After the main event, a small group of investors and advisers met to review all that had been discussed. These discussions on stage and off have informed what EG believes need to be prioritised if the opportunity of the Growth Corridor is to be fully realised. As you said, this is a 30-year project and, while you rightly singled out connectivity, housing and investment as priorities, we took a slightly higher-level approach, one that we believe stands the greatest chance of success in bringing together stakeholders to effect lasting change. I have summarised those thoughts below, under four headings, and hope you will find it useful as the government seeks to bring forward the project. Branding and narrative This must come first. On the face of it this is a prosperous part of the country, less in need of intervention than other parts. However, a national policy statement that is evidence-based and focused on economic growth through infrastructure provision rather than levels of housing delivery would show the impact this infrastructure investment could have on UK plc. With 22 local authorities trying to find common ground – and multiple private sector interests – this high level of co-ordination in respect of enabling infrastructure is vital. And with even many local people yet to understand what the corridor means, compelling branding is essential. Certainty A national policy statement for the Growth Corridor should focus on infrastructure/connectivity and productivity, not on issues around regional planning policy and housing provision. Infrastructure is a great enabler, but there are competing demands nationally for investment. It should be ambitious, inspiring and ground-breaking. With a guaranteed pipeline, could the Growth Corridor be a test case for offsite/modular construction? If the branding is right, and government support real, attracting private sector investment will not be a problem. However, this demands a champion in government. Many departments and agencies will need to be involved, but which will take the lead? And who will be the senior sponsor of the project? I am confident that the many interested parties who attended the event at Goodenough College would support you in taking on that role. Change In his last Budget, the chancellor talked of government support for business-led development corporations, university enterprise zones and digital catapults. Businesses seldom welcome an additional tier of regional governance, but such is the opportunity in the Growth Corridor it is necessary and, implemented well, would quickly win support. The right combination of planning and land assembly powers, as well as fiscal incentives, could be used to create a research cluster at the heart of the corridor. This incentivised, interventionist approach may be the only way of striking the right balance, achieving land value capture to fund infrastructure and countering the challenge of fragmented land ownership, ensuring the right level of environmental protection and delivering local accountability. We would propose a new name for the body: a Sustainable Growth Development Corporation. This may have application in other parts of the UK, too. Engagement The corridor will succeed only with community support. And the chances of long-term success will greatly increase if there is multi-generational input. Between a national policy statement that sets out a vision and a Sustainable Growth Development Corporation charged with implementation should sit a Sustainable Growth Commission. With blended powers, it should be highly innovative and informed by school and university students. The Urban Land Institute runs UrbanPlan, a realistic, engaging, and academically demanding programme in which students learn about the fundamental forces that affect urban regeneration. I am confident they would be delighted to run events at schools in the corridor. And with Oxford Brookes University and Anglia Ruskin University both accredited by the Royal Institute of Town Planners, engaging first-year students at these institutions to address real-life challenges would bring academic rigour, regional interests and youthful thinking to the project. As you said at the event: “Estimates by the National Infrastructure Commission suggest that with the right interventions, working in tandem between central government, local government and private investors, the Oxford-Milton Keynes-Cambridge Arc could double in growth by 2050, with 1.1m new jobs created and an additional £163bn of annual economic output.” We want to support the realisation of that ambition in an area we described as: “One of the greatest opportunities in the world. A rival to the West Coast of America. An absolute beacon for research, development and investment.” With that in mind, I hope these proposals are of value. We look forward to the publication this spring of the corridor-wide joint vision statement to 2050. The minister replies… Dear Mr Wild Thank you for your letter of 29 January following up on the Growth Corridor event held last December by EG and Farmers Weekly. I found it to be an excellent opportunity to engage with a variety of stakeholders on the Arc, and I welcome your suggestions for how we could best take forward our ambitions. As I set out in my speech, poor connectivity in the Arc and the challenge of housing affordability mean that, at present, the Arc is less than the sum of its parts. In our response to the National Infrastructure Commission at Autumn Budget 2018, the government designated the Oxford-Cambridge Arc as a key economic priority. We are committed to investment – including in relation to the rail and road links – which could best achieve our ambitions for the Arc, and we recognise the importance of providing the infrastructure necessary to unlock economic growth, and the opportunities that the Arc presents. At Autumn Budget, the government acknowledged that achieving our ambition for up to one million high-quality homes by 2050 will require a step change in housing delivery, including engagement on how this can be accommodated through vibrant new and expanded settlements. We recognise the challenges of delivering new communities at scale, particularly where we see co-ordination challenges and fragmented land ownership, and we will work to ensure that appropriate vehicles are in place to achieve our ambitions for the Arc. I agree that development corporations can be appropriate in this context. In addition, we have set out our clear expectation that authorities and delivery bodies across the Arc should use existing and new mechanisms of land value capture, including the community infrastructure levy, to ensure that rising land values are captured and reinvested in the community. I agree that it is important that we engage the local community as we strive to maximise the economic growth of the Arc. To act as a bridge between the government and the Arc itself, we have committed to working with local partners to establish a local governance body, comprising experts and leaders across the Arc, by spring 2019. To provide independent advice, challenge and strategic leadership, we will also shortly appoint a business chair. Together, these roles will not only provide expertise, but serve as a figurehead for the Arc nationally and internationally, galvanising the necessary leadership and support to help realise our ambitions, while retaining appropriate democratic accountability. Further, to ensure that this local engagement is matched by strong co-ordination across government, we will also appoint a ministerial champion for the Arc. Thank you once again for organising the event on the Oxford-Cambridge Arc, and for your suggestions on how we can ensure that the Arc continues to be a “beacon for research, development and investment”. I look forward to engaging with you in the future, as we work to amplify the Arc’s position as a world-leading economic place. With best wishes Robert Jenrick MP Exchequer secretary to the Treasury