The Cambridgeshire & Peterborough Combined Authority (CPCA) has launched a bold Local Growth Plan (LGP) that aims to transform the region into the fastest-growing economy in the UK by 2050. The plan, described as a “guiding star” for the region, sets out a vision to triple the local economy’s size, positioning Cambridgeshire and Peterborough as a global powerhouse for science, technology, and innovation.
Mayor Paul Bristow, who grew up in Whittlesey and served as MP for Peterborough, has made it clear that the region’s potential has long been overlooked.
“This Local Growth Plan is our opportunity for change. For the first time, I’ve set an ambition for Cambridgeshire & Peterborough’s economy to grow faster than any other region in the UK,” Bristow stated. The plan is not just about local prosperity but is designed to bolster the UK’s status as a business and science superpower.
The LGP is the result of extensive collaboration with local authorities, government departments, universities, and private sector partners. It aims to move beyond “modest organic growth” and ignite an accelerated pathway towards becoming the nation’s innovation engine.
Economic targets: from doubling to tripling
The plan outlines three growth scenarios for the region’s economy by 2050:
- Baseline Growth: “Business as usual” would see the economy reach £42.5bn by 2050, with an annual growth rate of 1.2%.
- Doubling the Economy: The core scenario targets £62.3bn GVA, doubling the economy’s size.
- Aspirational Growth: The most ambitious scenario aims to triple the economy to £97.1bn GVA, matching the combined output of Birmingham and Coventry today.
Achieving the highest target would require “unprecedented” government support, fiscal freedoms, and a dramatic increase in private investment. The plan’s economic modelling is rigorous, drawing on historic growth rates and the region’s unique innovation ecosystem.
The UK’s innovation powerhouse
Cambridgeshire and Peterborough already stand out as the UK’s most innovation-intensive region, with nearly 28% of GVA driven by knowledge sectors. The area boasts Europe’s largest tech cluster, over 38,000 active businesses, and a workforce where 7.2% are employed in scientific research and development—far above the national average.
The region’s global credentials are equally impressive. Cambridge is ranked as the world’s most intensive science and technology cluster, ahead of Silicon Valley and Boston. The University of Cambridge alone has produced 26 unicorn spinouts and 125 Nobel Prize winners, generating an estimated £30bn in annual economic impact.
Six priority sectors for growth
The LGP identifies six priority sectors as the engines of future growth:
- Life Sciences: Home to global giants like AstraZeneca and GSK, the sector employs 48,000 people and generates £16.5bn in revenue. The Cambridge Biomedical Campus is Europe’s largest life sciences hub.
- Advanced Manufacturing & Materials: With 35,000 employees and £13bn turnover, this sector is driven by innovation in robotics, materials science, and med-tech.
- Digital Technologies: Cambridge leads the UK in AI, semiconductors, and cybersecurity, with firms like Arm and Darktrace at the forefront.
- Defence: The region’s defence cluster combines advanced manufacturing, AI, and quantum technologies, supporting both national security and high-value jobs.
- Agri-Food & Tech: Leveraging world-class research and fertile land, this sector is pioneering sustainable agriculture and food innovation.
- Energy & Clean-Tech: With nearly 250 companies, the region is advancing battery technology, green energy, and circular economy solutions.
The plan aims to increase the share of these sectors from 28% to 40% of the regional economy by 2050, driving productivity and creating high-value jobs.
Opportunity zones and place-based growth
A key innovation in the LGP is the creation of “Opportunity Zones” to spread growth across the region. Four zones have been identified:
- Peterborough Fast Growth City: Targeting advanced manufacturing, agri-tech, and clean-tech, with major infrastructure projects like the Station Quarter and ARU Peterborough expansion.
- Global City Cambridge: Focusing on life sciences, digital, and advanced manufacturing, with projects including the Cambridge Innovation Hub and Biomedical Campus expansion.
- North Hunts Growth Cluster: Supporting advanced manufacturing, defence, and life sciences through new enterprise campuses and transport links.
- Fens Growth Triangle: Leveraging agri-food, advanced manufacturing, and clean-tech, with investments in science parks and transport connectivity.
These zones are designed to crowd in investment, regenerate towns and cities, and embed priority sectors throughout the region.
Tackling infrastructure and skills barriers
The LGP recognises that growth cannot be achieved without addressing critical infrastructure constraints. The plan prioritises:
- Water: Major upgrades to supply and wastewater infrastructure, including the Grafham Pipeline and Fens Reservoir, are needed to support housing and business growth.
- Energy: The region must increase energy supply by 121% by 2050, with projects like the Peterborough Substation and Sunnica Energy Farm.
- Transport: Investments in mass rapid transit, rail improvements, and new stations are essential to connect people and jobs.
- Housing: The plan forecasts a need for 214,760 new homes by 2050, with major developments already underway.
- Skills: Addressing regional disparities in qualifications, the plan supports further education expansion, skills hubs, and targeted interventions in deprived areas.
Inclusive growth and social mobility
Despite its strengths, the region faces stark inequalities, particularly between Cambridge and areas like Fenland and Peterborough. The LGP includes “Action Areas” to tackle deprivation, boost skills, and improve health outcomes. The goal is to ensure that growth benefits all communities, not just the high-tech clusters.
Delivery and next steps
The CPCA will lead the implementation of the LGP, working with partners to develop detailed delivery plans, investment pipelines, and new governance models such as Mayoral Development Corporations. The plan also calls for the designation of Industrial Strategy Zones to attract global investment and support scale-up businesses.
Mayor Bristow summed up the ambition: “Growth is good. I have the ambition, and we now have the plan. Let’s drive growth and make it a reality.”
National Significance
The Local Growth Plan for Cambridgeshire & Peterborough is more than a regional strategy—it is a blueprint for the UK’s future as a global leader in science, technology, and sustainable growth.
If successful, it will not only transform the region but also deliver significant dividends for the national economy, supporting the government’s Growth Mission and cementing Britain’s place on the world stage.
This report is based on the Local Growth Plan: Cambridgeshire & Peterborough Combined Authority, 2025.
To read the report to the Cambridgeshire and Peterborough Combined Authority Board, including the proposed draft Local Growth Plan, visit: https://democracy.cambridgeshirepeterborough-ca.gov.uk/ieListDocuments.aspx?CId=141&MId=669
