The government has pulled funding for the relocation of Cambridge’s Waste Water Treatment Plant, casting doubt over one of the city’s largest planned redevelopment projects.

The Ministry of Housing, Communities, and Local Government (MHCLG) confirmed last week (15/08) that it would no longer provide the £277 million pledged towards the £400 million scheme – just four months after approving the project and having already spent £80 million on it.  

The project, which had been under discussion for more than a decade, sought to move the existing sewage works from its current site in North-East Cambridge to land north of the A14, between Horningsea and Fen Ditton.

Relocation was expected to make way for around 8,500 new homes across 19 hectares as part of the North East Cambridge Area Action Plan. The site is regarded as the last major underdeveloped brownfield site in Cambridge.

Cambridge City Council and South Cambridgeshire District Council have expressed disappointment at the decision, warning that the long-anticipated redevelopment could now stall.

Cllr Cameron Holloway, Leader of Cambridge City Council, said the announcement was “very sad” and that the council had “made sacrifices to try to get [the project] over the line, including putting £13 million of council additional investment at risk.”

MHCLG cited “rising costs of materials and labour and disruption to global supply chains” as reasons for withdrawing support, but provided little further detail.

However, environmental campaigners who opposed the sewage plant’s relocation due to concerns about damaging green belt land have welcomed the decision.

The campaign group, Save Honey Hill (SHH) said they were “delighted” at the news, whilst Councillor Naomi Bennett (Green Party) said she was “thrilled” that “environmental vandalism” had been averted.

Meanwhile, questions remain over the future of the North East Cambridge project, which was intended to be a flagship development for the city. The area is seen as key to the Government’s ambition of making Cambridge “Europe’s Silicon Valley,” with housing provision closely tied to the growth of research and technology industries.

Anglian Water, which operates the current plant, stated it is “reviewing all options” following the “disappointing” announcement. The company had already undertaken extensive consultation on the proposed new site and submitted a Development Consent Order earlier this year.

It is unclear whether relocation could proceed without Government funding, or whether the North East Cambridge plans will need to be radically rethought.

This news comes amid progress made for housing developments in other areas of Cambridge. Planning approval was received earlier this week for 292 new homes in the East of Cambridge, as part of the Cherry Hinton North Development project, on top of the 1,200 new homes the project had already received planning approval for.