Budget pluses and minuses for Cambridge and wider region

Bryan says: “Support for the delivery of the East West Rail is excellent news for the British economy. The network will combine the region’s strengths so we can reach the critical mass needed for Britain to become a truly global science and technology supercluster.

“The Government has recognised the immense economic potential of the Oxford Cambridge Arc to drive growth for the country at large, and this is welcome.”

Cambridge will benefit from £10 million funding to enable the Cambridge Growth Company to develop what Chancellor Rachel Reeves calls “an ambitious plan for the housing, transport, water and wider infrastructure Cambridge needs to realise its full potential, and the expansion of the Cambridge Biomedical Campus – vital for life sciences and our industrial strategy.”

She added that the large concentration of life sciences firms from across the East of England stand to benefit from up to £520 million of funding for a new Life Sciences Innovative Manufacturing Fund, designed to drive growth and build resilience for future health emergencies.

Gerard Grech, Managing Director at Founders at the University of Cambridge and founder of Tech Nation believes more is needed. He commented: “Despite its achievements, the UK still trails the US in critical technologies like AI, quantum, and climate tech and the gap is widening.

“We must pivot from playing catch-up in existing fields to having the conviction to lead in emerging tech sectors, leapfrogging the current technology race.

“The Government's commitment to R & D is crucial, especially proof-of-concept funding to move research from lab to market, building infrastructure to support interdisciplinary lab work and innovation hubs, and anchoring private specialised funds to back breakthrough technologies.

“This Budget offers a step in the right direction with funding dedicated to core research and life sciences, but real tech leadership demands trade-offs in a world where tech is increasingly being geo-politicised.”

Digging deeper into what today’s Budget means for the East of England, confirmed but unspecified investment in East West Rail, includes acceleration of the Marston Vale Line, providing services between Oxford and Bedford from 2030.

“This will unlock land for housing and laboratories across the region, supporting the world leading life sciences economy in the corridor,” said Reeves.

Felixstowe and Harwich will continue to benefit from private sector investment brought in by their Freeport.

The Government adds that the region will benefit from the Government’s commitment to additional tax relief for visual effects costs in film and TV as it is home to 7.3 per cent of production companies in the UK.

The Government said it was working with Mayors including in the East of England to agree locally owned Local Growth Plans.

These are designed to identify priorities where local and national government can work in partnership to deliver on the area’s biggest opportunities and binding constraints to growth. These plans will inform and then help to deliver the national Industrial Strategy.

The Government will set out its plans to reform the local growth funding landscape in the spring: rationalising the number of funds, moving away from competitions and better supporting local leaders to drive growth it says.

Business Weekly is seeking more detail on timings for the various initiatives and exact funding for the various projects. For example, does it remain harnessed to former Levelling Up chief Michael Gove’s determination to build 250,000 new homes in Cambridge and create the Silicon Valley of the UK in the Cluster?

Anne Glover, CEO of Amadeus Capital Partners – a venture capital firm that invests in European hi-tech companies, said: “While there will be the inevitable disappointment within the private sector regarding CGT and employer’s NI tax rises, the Chancellor’s biggest achievement today is managing expectations ahead of what was always going to be a difficult Budget.

“What really matters now is making it easier for entrepreneurs to set up and grow their companies in the UK, particularly DeepTech early stage and growth companies which will become the backbone of the industries of the future.

“The commitment to investment through the National Wealth Fund and the protection of the research budget aligns with our belief that investment in technology will ultimately lead to long term growth.

“If the Government is serious about driving such investment in the UK, it should also look at encouraging or mandating that pension funds diversity their stakes into riskier assets such as venture and growth capital.

“The Chancellor has clearly listened to some of the concerns of investors and business leaders regarding changes to Capital Gains Tax, Carried Interest and Business Asset Disposal Relief and adapted the plans in a pragmatic way – but there is now a further consultation on carried interest which needs to be equally as productive and engaged.”