Last week, chancellor John Healey delivered his “breathing space” Budget, aiming to ease the burden of rising living costs. As well as the effect nationwide measures for energy bills and high streets will have in the county, it contained three specific measures for Oxfordshire: Thames Valley devolution, development for the Oxfordshire to Cambridge Growth Corridor and Vertex Pharmaceuticals investment.
Following the Budget, the government also announced it would be moving forward with local government reorganisation in Oxfordshire.
Thames Valley devolution
The chancellor confirmed that Oxfordshire, Berkshire and Swindon are progressing toward a Mayoral Strategic Authority (MSA). An MSA is a regional governing body in England led by a directly elected mayor and a board, established under the English Devolution and Community Empowerment Act 2026. This announcement unlocked an initial £9.1m in central government “Good Growth” funding.
Our view: We agree with the Local Government Association that genuine devolution must provide councils as well as mayors and strategic authorities, with the funding, powers and flexibility to respond to local priorities and deliver for residents.
Oxford to Cambridge Growth Corridor
The Oxford to Cambridge Growth Corridor connects the university cities of Oxford and Cambridge via Milton Keynes, Bedford and surrounding counties, and looks to target innovation and infrastructure in the region.
The government said this needs more residential, commercial and lab space to reach its potential and will therefore pilot a new financing model for the Greater Cambridge Development Corporation. This gives it direct access to government finance for land assembly and to invest alongside private partners.
This pilot is a first step, the government said. It will also launch a consultation on a development corporation in Oxford by the end of the year, and look to extend the financing pilot there.
Our view: Any housing growth tied to economic corridors must address local affordability and rural needs (such as supporting community-led housing and rural affordable schemes). Existing communities must be actively consulted and enabled to shape local changes, rather than having top-down infrastructure or housing targets imposed on them.
Vertex Pharmaceuticals
The Budget announced Vertex Pharmaceuticals will invest more than £300m in Oxford, backed with government grant funding. This is for research into serious diseases and is intended to provide more than 250 jobs.
Local government reorganisation
Local government reorganisation (LGR) is the process in which the structure and responsibilities of local authorities are reconfigured. Previously, the government had confirmed that the existing structure of five district councils and one county council would be replaced by three new unitary authorities. In September, it then announced it would be reviewing these decisions, meaning plans for Oxfordshire were paused.
Last week, ministers confirmed they were ‘minded to’ continue with LGR for Oxfordshire, with a final decision (subject to a further three-week consultation) due before Christmas.