Government warned East West Rail and Cambridge 2040 could be ‘at cross purposes’
The Government has been warned that its growth plans for Cambridge need to be in line with investment into East West Rail, according to a new report by the National Audit Office (NAO). The report suggested East West Rail (EWR) could be 'at cross purposes' with plans for major development in Cambridge. Secretary of State for Levelling Up, Housing and Communities Michael Gove said he is 'in a hurry' to 'push ahead' with plans to build as many as 250,000 new homes in the city[1] as part of plans dubbed 'Cambridge 2040'.
The plans are intended to make the city 'Europe's science capital'. The NAO, the independent public spending watchdog, has published a report on why and how the Government is delivering EWR, which is being delivered by the East West Rail Company (EWR Co). Investment into EWR was announced in 2017 as part of plans to support economic growth in the region between Oxford and Cambridge.
The Department for Levelling Up Housing & Communities (DLUHC) announced plans to expand Cambridge with a new 'urban quarter' in July 2023. A spokesperson for NAO said: "Government risks the planning for both projects being at cross purposes. The two departments are now working together to align plans ahead of EWR Co's statutory consultation on the EWR route, planned for 2024."
Gareth Davies, Head of the NAO said: "The rationale for East West Rail rests on its wider strategic aims of increasing economic growth in the Oxford to Cambridge region. To maximise the economic benefits from its investment in East West Rail, government must ensure stronger strategic alignment between departments and with wider local growth initiatives, so that there is a shared, coherent vision for the future of the region, and the contribution that the East West Rail project will make to it is clear." Cost-benefit analysis of EWR by DfT estimates that there would be between 30p and 60p of benefits for every GBP1 spent on connection stages 2 and 3.
In May 2023, DfT found that there is a strong strategic need for EWR. Projected costs could be higher if DfT decides to electrify the line - with full electrification costing up to GBP1billion. Partial electrification or other options could be delivered at a lower cost.
Meg Hillier MP, Chair of the Committee of Public Accounts, said: "East West Rail is a GBP6-7 billion investment to support growth in a part of the UK that government regards as economically important. However, today's NAO report says it is not clear how the benefits of the project will be achieved or how it aligns to other government plans for growth in the region. "To achieve value from the investment of taxpayers' money in East West Rail government must be strategically aligned.
Central government and local bodies must work together better if benefits are to be realised over the long term."