The Chancellor has been warned to invest in rail and water infrastructure in a key growth city or risk stalling housebuilding and the creation of new jobs.
Rachel Reeves is risking 237,000 “lost jobs” by failing to focus on infrastructure in Cambridge and its surrounding area, which is a major hub for more than 5,000 science and technology firms, a new report has claimed.
The study by Cambridge Ahead, a member organisation dedicated to growth in the city, has warned that the £1bn the cluster contributes to the Exchequer could be at risk without crucial investment in new transport and water facilities to support the delivery of affordable housing and commercial space in the area.
In its report, shared with i, Cambridge Ahead warns that this infrastructure gap could result in a missed opportunity to create hundreds of thousands of jobs by 2051.
It also found that a third of firms surveyed were very likely to consider alternative international locations to Cambridge, citing infrastructure issues as one of the main reasons.
The organisation is now calling on the Government to build on its commitments to the city region and work with local leaders and businesses to “deliver the transformational infrastructure needed to unlock growth”.
Dan Thorp, chief executive of Cambridge Ahead, warned that the city’s “vast and unique contribution” to the economy could be threatened unless these issues are addressed.
Reeves made a new commitment to Cambridge in the Budget, pledging £10m for the Cambridge Growth Company to “unlock future economic growth”.
She said this money would be used to “develop an ambitious plan for the housing, transport, water and wider infrastructure Cambridge needs to realise its full potential”. But Cambridge Ahead wants the Government to go further and faster.
Businesses that contributed to the report are demanding that this pledge is delivered as soon as possible due to the pressures they are facing.
Dr Mark Kotter, chief executive and founder of synthetic biology firm Bit.Bio, cited housing and transport as the two main issues hindering his firm.
“Affordable housing for our growing workforce, reliable and sustainable transport links, and the quality of life in Cambridge are all very acute pressures we face as we weigh up our next steps as a company,” he said.
“This all adds up to talent attraction and retention for us. This and investment in cutting-edge research facilities in the UK, are the big factors for future success.
“Government needs to work quickly to help Cambridge overcome infrastructure obstacles – the size of the prize for UK innovation and job creation in science is huge if we do so.”
Housebuilding firm Hill Group said that the first step should be focusing on transport and water if the Government wanted to deliver affordable housing for the tech workforce in Cambridge.
The group’s chief executive and founder, Andy Hill, said: “Jobs created in Cambridge add so much to the regional and UK economy, so we must ensure that this contribution is not suppressed by a lack of homes.
“Unlocking Cambridge’s potential – in a way that enhances quality of life in our communities – requires homes in the right places. Affordable and high-quality housing connected by sustainable and reliable transport links to Cambridge’s employment clusters.”
The group’s intervention comes ahead of Reeves’s first speech to Mansion House in the City of London since she became Chancellor.
She will use the speech to announce Canadian-style reforms to the UK pension system, which she claims will unlock £80bn of investment for infrastructure projects.
