Comment

Calling for commitment

New Economic Prospectus calls for firm commitment to Oxford to Cambridge Arc

The Oxford to Cambridge Arc, which the Chancellor of the Exchequer described as a “key economic priority” for the country, has published ‘The Oxford-Cambridge Arc Economic Prospectus’.

Co-authored by the Arc Leaders Group, the Arc Universities Group and the Arc Local Enterprise Partnerships Group, the prospectus sets out the Arc’s ambition to unlock the potential of its assets to create a world-leading innovation economy, whilst calling for greater Government support and commitment.

Three asks

The prospectus makes some big promises, not least a return on investment of £4 for every £1 of public sector expenditure committed. It sets out three key asks of the Government, namely:

• Recognition that the Arc is central to the Government’s R&D Roadmap for the UK to be a world leading science superpower
• Continued support for planned Arc-based projects – with a focus on transport, digital infrastructure and active travel projects
• Establishment of an “Arc governed investment channel” – this is essentially a streamlined route to securing capital and revenue funding for key projects

A single voice and common goals

The prospectus signals a move from the multiplicity of local authority and Local Enterprise Partnership stakeholders in the Arc competing for investment, to speaking with a single voice and pursuing common goals. Indeed it calls for:

“…a shared identity: one which collectively promotes the connected assets and opportunities across the function economic area […]. To fulfil our potential, we need to be recognised by government and stakeholders as the channel for Arc priority investments, with committed and dedicated Arc funding channels for the future.” 

This is an important step forward for the Arc at a time when the response to COVID-19 has been notably localised. Individual councils and LEPs have published their economic recovery plans, but the Arc has lacked a coherent collective narrative in terms of its economic potential until now.

Contributing to economic recovery

The knowledge and innovation assets within the Arc mean that it has a unique role to play in terms of the immediate need for economic recovery, but also the long term resilience of the UK’s economy and thus prosperity.

This should be appealing to the Government who will be looking to “back winners” and those economic functional areas that can contribute to post COVID-19 recovery and productive growth. The timing for the prospectus’ launch coincides with the Conservative party conference and is likely to attract attention. The language of the prospectus, for example stating that the Arc will be a “partner of choice for the Government”, signals the intent of the partnership.

We expect the partnership's calls for commitment to be supported and the Arc to be an enduring part of the Government’s economic development plans for the UK.

Making the partnership’s singular vision a reality will of course demand more than a Government commitment. It will require a sophisticated approach to engaging multiple stakeholders, accountability and governance, and an equally bold approach to Local Plan preparation and the much anticipated Arc Spatial Framework.

Place and environment

It is positive that the prospectus recognises that “place and environment” in the Arc are essential parts of its innovation infrastructure, alongside connectivity, skills and other strategic sector initiatives. The ambitions that it sets out for place and the environment (see below) perhaps provide a taster of what might be included in the Arc Spatial Framework and the next generation of Local Plans.

All eyes on the Arc

It is understood that Government is to commit to public consultation imminently on the Spatial Framework, and therefore the timing of the economic prospectus release is helpful in terms of informing the discussion and the extent of the opportunity.

Publication of this by the Arc partnership will no doubt draw the attention of other multi-regional partnerships such as the Northern Powerhouse and Midlands Engine. What are their equivalent asks of the Government? How are they distinct from and complimentary to those of the Arc? Are they as bold?

These multi-regional partnerships outside the Arc have a pivotal role in driving forward the UK’s economy, contributing to the Government’s “levelling up” agenda and delivering prosperity to communities. 

The Arc prospectus highlights the importance of partnerships communicating their economic potential and “asks” of Government well ahead of the next budget.

For further information on the contents of the economic prospectus, or the Oxford to Cambridge Arc in general, please contact Richard Laming or Tim Burden.

6 October 2020