Why is government spending £1.3bn on Universal UK?

Nicola Haseler,in Stewartby,
Andrew Sinclair,at Downing Streetand
Danny Fullbrook
News imagePA Media Chancellor of the Exchequer, Rachel Reeves, with Comcast NBC Universal's Universal Destinations and Experiences Chairman and CEO, Mark Woodbury.PA Media
Universal Destinations and Experiences chairman and chief executive, Mark Woodbury, met Rachel Reeves in Downing Street

The government has promised an investment worth £1.3bn in infrastructure to support the planned Universal United Kingdom Resort.

Chancellor Rachel Reeves explained the development would create 28,000 jobs between now and its opening, and "unlock nearly £50bn of economic growth".

She also mentioned the project in Bedfordshire would provide "lots of joy" to visitors once open in 2031.

But for some it might seem a hefty bill for the government to pick up on a theme park during a cost of living crisis, so why has it done it?

Where is the money going?

News imageGetty Images A view of the Universal globe outside the entrance to the Florida park. A roller-coaster and other rides can be seen in the background.Getty Images
Universal told the BBC the planned park would be its only destination in Europe

Most of the money - £474m - has been allocated by the Department for Transport to upgrade the A421 and the new Wixams railway station.

Universal has already said it wants a new junction on the A421 that will directly feed traffic in and out of the resort.

While a two-platform station was already planned to connect Wixams to London and Brighton, work has been halted so it can be expanded into a four-platform stop capable of handling the influx of tourists.

Further connectivity is expected via Stewartby, which is slated for the East West Rail line, with a promise of four trains an hour to Oxford by the early 2030s.

News imageAnt Saddington/BBC Aerial view of a construction site with scattered equipment and vehicles. Nearby are residential houses and a railway track.Ant Saddington/BBC
Work to build Wixams' station began in the summer of 2024

The government will also provide a grant of £400m through the exceptional Regional Growth Fund, while the Department for Culture, Media and Sport will provide a second grant of £438m for "new community infrastructure".

Both of these will only be paid once Universal has completed that infrastructure and opened the park.

When asked about local concerns around water infrastructure, the chancellor said the government was committed to building more reservoirs in the area, as part of its plan to build more homes.

She added that Universal itself was "investing in energy infrastructure at the site as well to make it more sustainable and more resilient".

Why does the government care?

News imagePA Media Rachel Reeves dressed in high-vis with a white Universal hard hat, speaking to others dressed in the same clothes in an outdoor space.PA Media
Rachel Reeves boasted that Universal had "chosen Britain"

The chancellor views Universal's total investment of £6bn as a "big vote of confidence" in the UK.

In her eyes, the government support helps unlock Universal's direct private investment which will boost jobs and the country's economy.

She continued: "Universal could have put this pretty much anywhere in Europe, it's their first theme park in Europe... and they've chosen Britain and they've chosen Bedfordshire."

Universal has already hired about 100 people in the UK and has had 33,000 individuals expressing interest in employment through its website.

During construction there will be 20,000 jobs, with a further 8,000 once gates open.

The chancellor continued: "It is right that government supports that because of the private sector money it will bring in, and the growth potential and the jobs potential.

"As a government we back growth and we back good jobs, paying decent wages, and there'll be plenty of these on this site."

Are locals happy?

News imageNicola Haseler/BBC Two people dressed in black, smiling in a silver kitchen.Nicola Haseler/BBC
Coffee shop owners Rebecca Burnage and Brendan Flynn are worried about sudden competition from global brands

The government said consultations run by Universal had found more UK public support than any other potential location in the world.

But some locals have shared concerns about the impact of such an enormous development.

Brendan Flynn, owner of The Kiln coffee shop in Stewartby, said the resort was a "dream come true" for a local lad, but was concerned big chains could move in and take over.

He said: "People that Google where to go for coffee near Universal are going to find big chains, they're gonna just immediately discount us.

"As soon as that happens, we're just going to be demoted - that's where we're going to have to find ways to bring people in."

Co-owner Rebecca Burnage added: "I feel like you can say you're going to chuck as much money as you want to something, but is it going to happen? Is it going to benefit people like us? Probably not."

She said the increased number of visitors would require employing more staff, which could increase the amount paid on tax and national insurance.

News imageBedford Borough Council Two men smiling in front of a sign that says "Bedford Borough Council".Bedford Borough Council
John McReynolds, senior vice president of external affairs at Universal Destinations and Experiences, pictured with Bedford mayor Tom Wootton

Tom Wootton, Conservative mayor of Bedford Borough, celebrated the "lasting legacy" the investment would have on the area.

Universal has already opened offices in Borough Hall.

He explained: "It's not just about making it an unmissable destination for visitors from the UK and across the world; it's about creating apprenticeships, upskilling our existing workforce, and taking the range of opportunities for young people to a whole new level.

"Our region is already a hub for tech industries, and this multibillion-pound investment will further create new Bedford-based jobs in creative industries, engineering, construction and hospitality."

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