Is the £1bn Cyber Park Promise Fading?

Overview of the Golden Valley Development

The Golden Valley development, a £1 billion project aimed at addressing the growing housing needs in Cheltenham, promises to deliver thousands of new homes. Alongside this, the developers are also planning to construct a world-leading National Cyber Innovation Centre, which is expected to create over 10,000 jobs. The scheme was first conceived in 2017, with an overall planning application submitted in 2023. It is anticipated that the project will be fully completed by 2035.

However, there are increasing concerns about whether the promised community benefits, such as affordable housing, are being compromised. This has raised questions about the long-term impact of the project on local residents and the community.

Key Components of the Golden Valley Project

Located to the west of Cheltenham, the Golden Valley development spans 200 hectares—equivalent to nearly 1,000 football pitches. When completed, the project will include:

• 2,500 low carbon homes
• 1.25 million square feet of commercial space for offices, teaching, research areas, and hospitality
• Green spaces
• A transport hub
• A primary school

The centerpiece of the development is the cyber centre, which is not only intended to provide space for research and development but also to ensure the long-term presence of GCHQ in the spa town. Additionally, the scheme includes improvements to junction 10 of the M5, which will allow access in all directions on and off the motorway. Currently, vehicles can only enter northbound and exit southbound.

Current Status of the Scheme

As of now, no construction has begun on the site. In September 2023, the council approved £95 million in funding for the cyber centre. The overall financing for the project comes from a mix of private and public sources, including £20 million from the central government's levelling up pot.

Last month, Cheltenham Borough Council (CBC) approved plans for the second phase of development, allowing developers HBD to proceed with building 600 homes and more than a million square feet of employment space. The first phase, related to the M5 improvements, was approved in June. HBD hopes to break ground on the innovation centre in the spring for a 2027 opening, with the first 1,000 homes occupied by 2029.

Concerns Raised by the Community

The borough council's Green Party group has expressed concerns about the "erosion of promised community benefits" across the development. According to CBC's wider planning policies, 40% of homes in all new developments should be classified as affordable, allowing certain groups, such as those on lower incomes, to purchase homes below market rate.

However, during a recent planning committee meeting, officers indicated that only 26% of the homes in the first phase would be affordable due to "viability issues." They also noted that the developers would not be able to cover the full amount requested for the M5 junction 10 improvements.

A Green Party spokesperson stated, "The dilution of social housing commitments is a warning sign of what today's Cheltenham residents can expect from a project they are financially underwriting. This development was sold to Cheltenham residents on the basis of significant community benefits. Today's council taxpayers are underwriting tomorrow's promises, yet those promises are being broken."

Council's Response

In response, CBC councillor Alisha Lewis stated that the authority is "proud" of the scale of investment in the Golden Valley. She mentioned that the council has already increased the amount of affordable housing in the southern part of the development from zero to 26%. Ms. Lewis expressed hope that opportunities to increase affordable housing provision would arise in later phases.

She added, "We're working with local housing experts to make sure the homes we do build meet Cheltenham's real needs, from accessible homes to larger properties for families, and a mix of different tenures. Our priority is not just to build homes, but to build the right ones, for the people who need them most."

Ms. Lewis emphasized that the borough council is building more purpose-built affordable homes than ever before.