New research suggests that the three-council proposal could generate £168.8 billion by 2050 under a proposed reorganisation of councils in Oxfordshire and West Berkshire.
The study, commissioned by Oxford City Council and carried out by economists Volterra, examined three options for restructuring Oxfordshire’s six existing councils into a smaller number of unitary authorities.
The model generating the highest projected economic return would replace the current councils with three new authorities.
Councillor Susan Brown, leader of Oxford City Council, said: “Oxford already has one of the strongest economies in the UK, but it has the potential to be one of the world’s leading places for computing, AI and creating life-saving vaccines and cancer treatments.
“By expanding Oxford’s boundaries with a Greater Oxford Council, we could create thousands of new jobs across the whole region – not just scientists and AI experts, but in logistics, HR, education, hospitality, culture and more.
“These would be secure, well-paid jobs, which would bring more prosperity to families in Oxford and Oxfordshire – as well as generating £170bn for the UK’s economy.”
The Government has asked councils across England to propose ways of simplifying and streamlining local government structures in their areas.
One option would see the creation of a single authority covering Oxfordshire, while another proposes two councils: an Oxford and Shires Council, and a Ridgeway Council.
Under the three-council model, the proposed authorities would be:
Greater Oxford Council, covering Oxford and its Green Belt. Northern Oxfordshire Council, covering most of Cherwell and West Oxfordshire. Ridgeway Council, covering most of the existing South Oxfordshire and Vale of White Horse districts combined with existing West Berkshire unitary. Each new council would be responsible for all services currently provided by district, city, and county councils.
Volterra’s analysis found that the three-council model would generate £43.1 billion more gross value added (GVA) between 2023 and 2050 than the single-council option, and £26.8 billion more than the two-council model.
The report highlights Oxford’s unique “innovation ecosystem” of research excellence, skilled talent, specialist real estate, and global businesses as a key driver of growth.
The three-council proposal also outlines plans for 40,000 new homes—including 16,000 social and affordable properties—within Greater Oxford by 2040.
This level of development would require using 2.6 per cent of Oxford’s 35,000-hectare Green Belt.
Oxford City Council gathered input from 35 local businesses in an online survey conducted in September and October.
More than 80 per cent said being located in or near Oxford was very or extremely important to their success, while 85 per cent agreed that affordable housing near Oxford is important for business growth.
