Chancellor Rachel Reeves announces further £2.5bn for East West Rail in Spending Review
A further £2.5billion has been earmarked for East West Rail, the Chancellor of the Exchequer has said.
Rachel Reeves made the announcement in her Spending Review statement in the House of Commons today (Wednesday, 11 June).
East West Rail aims to connect Oxford and Cambridge by rail. It also proposes to build new stations at Tempsford and Cambourne.
Ms Reeves said: “I have heard representations from my honourable friends from Milton Keynes North, Milton Keynes Central, and Buckingham and Bletchley, and I can tell the House today to connect Oxford and Cambridge and to back Milton Keynes’ leading tech sector I am providing a further £2.5 billion for the continued delivery of East West Rail.”
The policy paper published by the government shortly after Ms Reeves speech said there will be a “renewed focus on supporting growth in the Oxford to Cambridge Growth Corridor”, which included confirming the delivery of East West Rail.
It added that progressing East West Rail would also support “housing developments”.
The government said supporting growth in the Oxford to Cambridge area would help it meet its “priority mission to deliver strong, secure and sustainable economic growth to boost living standards for working people”.
The Chancellor also announced in the spending review that the government would be investing £2.3billion in the national Local Transport Grant for local transport improvements, such as bus lanes, cycleways, and congestion improvement measures.
Ms Reeves said this would be a “fourfold increase” in funding in 2029/30 compared to 2024/25.
The policy paper said: “Transport is critical to the delivery of the growth mission. Over Phase 2 of the spending review the government will increase transport capital investment to give people across the country greater access to jobs, education, training, and public services.”
Responding the news, Cambridge’s Labour MP Daniel Zeichner said: “This Spending Review is about getting Britain moving again, and I am proud that Labour is backing East West Rail with real investment. This isn’t just about better train services, it’s about unlocking thousands of homes, creating jobs and growing our world-leading science and innovation economy.
“Cambridge plays a key role in shaping Britain’s future through science, innovation and clean growth, but we can’t achieve our full potential without the infrastructure to match. For too long we have been held back by underinvestment and piecemeal promises, but now Labour is changing that. This Spending Review shows we have a plan, we have priorities, and we are delivering.”
