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The UK government will turbocharge a strategic plan to create a rival British Silicon Valley around Oxford and Cambridge, the latest sign that Labor is focusing on areas of high economic productivity. to push it for growth.

The decision to support the Oxford-Cambridge Arc marks a return to political favor for a scheme deleted three years later then Conservative prime minister Boris Johnson prioritized “leveling up” poor regions.

Science secretary Peter Kyle on Monday said the government wants to double the economic output of the science-rich region that lies between two of Britain’s most famous universities, with between the manufacturing and logistics hub of Milton Keynes.

“The Oxford-Cambridge Arc is already an engine of progress, but we can go further. We are determined to release rresearch and development as a driving force in our mission to develop the economy in every corner of the country,” he said.

Fast-tracking the scheme to rival science clusters in Boston and San Francisco in the US could add £78bn to the UK economy’s GDP by 2035, according to research by consultancy Public First for the Oxford-Cambridge Supercluster Board, which consists of industry and university leaders.

The announcement, which came ahead of UK chancellor Rachel Reeves’ “progress” speech this week, was welcomed by the vice-chancellors of Oxford and Cambridge universities as well as senior executives at pharmaceutical company AstraZeneca UK and designer in the computer chip Arm.

The supercluster board chair Andy Williams said that its members, “which include some of the biggest investors in the world, see the incredible potential and in this commitment it is very clear that the government, too”.

The original plan was created in 2017 by the National Infrastructure Commission and has been a top priority of successive Conservative governments, most recently. returned the favor under Rishi Sunak.

It promised to provide an extra 1 million homes and 700,000 jobs but met with a fierce political opposition from local groups opposed to new developments.

However, Sir Keir Starmer, the prime minister, has signaled that he is ready to face such objections, promising to build 1.5 million homes in this parliament and “put builders first not blockers” to develop the stagnant economy.

Mike Davey, Labor leader of Cambridge City Council, welcomed backing for the Arc but warned it would require investment in more affordable homes, as well as improved water and transport infrastructure.

“The government needs to learn from the mistakes the Tories made in the Arc – we need to bring local communities in and they need to see the benefits,” he said.

No new money was announced for Arc on Monday. But the government committed in the October Budget to deliver the East West Rail project which will restore the “Varsity” railway, which connected Oxford and Cambridge until it closed in 1967.

While praising the ministers’ ambition for the Arc, senior executives said the plan would require infrastructure improvements along with reforms to provide faster planning permission, easier access to the global workforce. and capital.

Both Oxford and Cambridge suffered from water and electricity shortages which led to housing and scientific developments being temporarily blocked by environmental regulators.

Richard O’Boyle, chief executive of Pioneer Group, which runs life sciences campuses, said OxCam could be a big driver of growth “with the right support” but “to fully unlock its potential we need investment, better infrastructure, and policies that support growth”.

In a sign of the area’s development difficulties, a decision has been made on whether to move sewage works north of Cambridge. delayed the second time in January, in effect froze a 5,600 home development.

Nick Pettit, senior partner of real estate adviser Bidwells, said it is a sign of the strength of interest in OxCam that global investors are attracted to the region despite the difficulties in planning and purchasing.

“The reality is that small policy changes are all that is needed for this region to make a big difference in its contribution to national growth,” he added.

The government says it is committed to investing in regional growth as part of its Industrial Strategy, although offering such high-profile support to Oxford and Cambridge risks accusations that the south of England is favored to drive growth.

However, Dan Thorp, chief executive of advocacy group Cambridge Ahead, said supporting OxCam was “not a zero-sum game” and that Cambridge was working with other groups, such as the Northern Powerhouse Partnership , to create “connected clusters” that share growth.

“The huge benefit for the government’s growth mission could come from linking what happens with OxCam to the rest of the UK,” he added.