Budget says Cambridge to get help to 'realise full potential'

The government has released a new report into the future of Cambridge

The government has moved forward with plans to establish a development corporation to help "realise Cambridge's full potential".

It has released a 38-page document setting out its "Case for Cambridge".

It includes proposals for tens of thousands of homes to be built in the area before 2050.

The leaders of Cambridge City and South Cambridgeshire District councils said communities needed far more detail - and their say - on government plans.

Housing Secretary Michael Gove announced proposals last year to see more laboratory space and 150,000 new homes built in the Greater Cambridge area, as part of its Cambridge 2040 ambitions - to make the city the "Silicon Valley of Europe".

In his budget speech today, Chancellor Jeremy Hunt said: "I am pleased to announce the next steps for Cambridge to reach its potential to be the world's leading scientific powerhouse.

"I confirm there will be a long term funding settlement for the future development corporation in Cambridge at the next spending review, with over £10m invested in the coming year to unlock delivery of crucial local transport and health infrastructure."

'Unique opportunity'

In a new report, Mr Gove said Cambridge was the "most unequal city in the UK" and faced "significant challenges" that prevented it from reaching its "full economic potential".

The report said housing in the city was less affordable than most other major cities and it was experiencing an "acute shortage" of laboratory space.

It said building 150,000 new homes would add approximately £6.5bn to the economy.

Tens of thousands of homes could be built around Cambridge under the government's plans

"In Cambridge there is a unique opportunity to harness future economic growth to pay for the new infrastructure needed to grow the city and increase the quality of life for residents," the report said.

In the Case for Cambridge, the government added that water scarcity would be its "first priority", recognising it was "holding back development" in the area and risked "causing environmental harm".

It said it planned to deliver "unique offsetting intervention" to save water now by improving efficiency.

Michael Gove said Cambridge was the "most unequal city in the UK"

The Labour leader of Cambridge City Council, Mike Davey, said Mr Gove "has not demonstrated that he is listening".

"There has been no public engagement and the city council has not been involved in the writing of the Case for Cambridge," he said.

"As elected members, we are custodians of this wonderful city and therefore we have a duty to ensure it is protected and enhanced for future generations.

"We welcome the initial progress to address water scarcity and help address housing affordability, sustainable transport and lab space. However, despite eight months of discussion on this project, we have yet to see any credible plan or evidence of the significant finance required to deliver it."

The Liberal Democrat leader of South Cambridgeshire, Bridget Smith, added there were "parts of today's update we can welcome", including the "focus on resolving the crucial water supply issues" and the "acceptance of the unaffordability of Greater Cambridge".

"However, we still need to understand what these tens of thousands of new homes and jobs would look like and where they would all go," she said.

"We do remain concerned about a 'case' that has the potential to quadruple the size of the city, especially when the government is signalling cuts to the very services that are needed to support our existing ambitious plans, let alone this unprecedented scale of growth."