Report

How East West Rail will boost the UK’s productivity

10.6.24 2024

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The Oxford to Cambridge region is home to the most productive life sciences cluster in Europe, with 300 companies contributing £2.9 billion to the UK economy, creating jobs and attracting investment for the whole country.

Milton Keynes, at the heart of the region, is a testbed for AI innovation, with over 1,000 people with direct AI or machine learning skills and is home to over 6,000 software engineers and 4,000 data engineers, while Cambridge’s rate of patent applications—a key indicator of innovation—is the highest in the UK, at over 12 times the national average.

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Undoubtedly, the region is a national success story. So, what are we worried about? For one, the tremendous growth over the past decade cannot continue without unblocking some increasingly obvious constraints that could stop it—access to talent, money, and space. But there’s more… we are only seeing the tip of the iceberg in terms of the region’s potential. Although the region’s productivity is good by UK standards, it is only half that found in Silicon Valley in the US, for example. There is therefore so much more this region could contribute to the national economy, and it is uniquely well placed in the UK to do so—building off its world-leading institutions, global reputation, and existing momentum. The National Infrastructure Commission estimated the scale of the opportunity here and put it at as much as £100bn of additional GVA every single year by 2050. At that scale, it’s a game changer not just for the region’s productivity but for the UK as a whole.

So what do we need to do? One of the key constraints for the region is that it’s actually a series of individual pockets of success rather than being joined up and mutually beneficial with the critical mass to compete globally. Cambridge, for example, does well on many indices on a per capita basis, but it has a population of less than 200,000, compared to Boston or Silicon Valley which each have populations of over 3m. This is where East West Rail (EWR) comes in. By joining up Oxford, Milton Keynes, Bedford and Cambridge, and the communities in between, EWR provides that missing link to bring the individual pockets of success across the region together, all within daily travelling distance. This link unlocks an economic motor of more than 3.5m local people, with the opportunity to make the region more than the sum of its existing parts, and with the critical mass to realise that extra £100bn of GVA every year. 

The crucial connectivity provided by EWR will foster innovation and collaboration across towns and cities like Bedford, Milton Keynes, Cambridge, and Oxford, among others. EWR will enable easier access to talent and resources. By linking major research hubs and academic institutions, the project will create a dynamic ecosystem where ideas can flow freely and expertise can be shared across geographical boundaries. Connecting the region’s world-renowned academic and research institutions will catalyze opportunities for groundbreaking discoveries and technological advancements.

The improved connectivity offered by EWR will attract top talent to these regions, further bolstering the scientific and technological workforce without being constrained by high property prices that drive up wages and hurt UK productivity relative to our international competitors. This influx of talent will fuel a virtuous cycle of innovation, driving productivity gains in science and technology.

EWR will spur regional economic development. With faster and more efficient transport links, businesses, both large and small, will find it easier to access markets and resources across the corridor. EWR will bring businesses closer to their supply chains, workers, and research sectors, while helping life science industries which struggle struggle for availability of lab space – expand to potential new sites for investment. This increased connectivity will encourage entrepreneurship and investment, particularly in high-tech industries, driving economic growth and creating wealth and jobs.

The construction and operation of EWR itself will create a multitude of opportunities for innovation. From developing sustainable infrastructure solutions to implementing cutting-edge digital technologies for efficient operation, EWR will serve as a testbed for pioneering advancements in engineering and transportation. These innovations will not only improve the efficiency and reliability of the rail network but also have ripple effects across other sectors.

In addition to helping to boost the UK’s reputation for science and technology, the enhanced connectivity offered by EWR has broader social as well as economic benefits by improving access to employment, education, training and healthcare services for communities along the route.

As the UK strives to position itself as a global leader in science and technology, investments in transformative infrastructure projects like EWR are not a nice to have, they are crucial. By joining together a region of over 3.5m people, world leading institutions and a thriving private sector, EWR will unlock collaboration, help attract talent and drive innovation, which in turn will unleash this country’s world leading science and technology sectors to deliver that extra £100bn a year in productivity for the UK. 

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Mike Jones

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Mike is a Chartered Town Planner with 19+ years’ experience and knowledge across an array of sectors.

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The Productivity Engine is our latest groundbreaking report that addresses the UK's stagnating productivity. What powers economic productivity? An easier question to answer may be what doesn’t. 

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