Chancellor Rachel Reeves has today confirmed that the government has agreed water companies’ water resources management plans, including Cambridge Water’s, unlocking a now-confirmed £7.9 billion investment in water resources in the next 5 years to provide a foundation for growth and improving water infrastructure.

The plans include nine new reservoirs, including the new Fens Reservoir serving Cambridge to South East Strategic Reservoir Option (Abingdon Reservoir) near Oxford.

The latest commitments came as part of a major speech in Oxfordshire by Rachel Reeves to regional and business leaders as she unveiled new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035, according to industry experts.

The Chancellor also announced that the Environment Agency has lifted its objections to a new development around Cambridge that could unlock 4,500 new homes and associated community spaces such as schools and leisure facilities as well as office and laboratory space in Cambridge City Centre.

Concerns about water supply to the new homes had led the Environment Agency to object to plans for Waterbeach New Town and also to the proposed Beehive Centre redevelopment due to water scarcity concerns.

“This was only possible as a result of the government working closely with councils and regulators to find creative solutions to unlock growth and address environmental pressures” a statement released by HM Treasury said.

The Chancellor also announced a new Growth Commission for Oxford, similar to the Cambridge Growth Company, to bring together key stakeholders across the city and review how best to tackle the barriers that are constraining development of new housing and infrastructure to accelerate growth in the city.

The speech comes after the Chancellor last week announced a package of investment reforms to spur regional growth across the UK. Rachel Reeves set out a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities.

In today’s speech the Chancellor also announced a review of the Green Book - the government’s guidance on appraisal - in order to support decisions on public investment across the country, including outside London and the Southeast.

Institution of Civil Engineers - delivering infrastructure and meeting climate objectives isn't an either/or choice

In response to Chancellor Rachel Reeves speech today, Dr Janet Young, director general of the Institution of Civil Engineers said,

“In today’s speech, Chancellor Rachel Reeves shared some positive updates about how the government will support economic growth through infrastructure.

“She outlined some clear objectives for the UK and announced that the Green Book, the government’s guidance on appraising projects, will be updated to better support decisions on public investment.

“Investors and the construction supply chain need certainty so that they are confident that the UK is an attractive place to deliver infrastructure and updating the Green Book could help address regional imbalances in investment.

“While more detail is needed on how the government will support growth and meet its net zero ambitions, delivering infrastructure and meeting the country’s climate objectives shouldn’t be seen as an either/or choice.

“Planning and delivering the right infrastructure can go hand in hand with achieving the country’s net zero ambitions.

“The ICE hopes to see an even more defined vision for the country in the forthcoming Planning & Infrastructure Bill and the 10-Year Infrastructure Strategy.”