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The UK government pledged to spend close to £500mn on transport and infrastructure improvements to secure the vast Bedford theme park planned by US media group Comcast, said people close to the talks.
The scale of taxpayer support from a government under tight fiscal pressure is a sign of Prime Minister Sir Keir Starmer’s desire to attract billions of dollars of inward investment as he tries to boost the stagnant UK economy.
Comcast, which was considering other countries for the site of its first European theme park, announced in April that it would build the Universal-branded attraction on the site of a 500-acre former brickworks near Luton.
Ministers at the time indicated that the government planned “infrastructure investment” around the site, but the cost to the taxpayer has not been previously revealed.
The estimated £500mn cost of improvements around the site includes about £270mn in rail network upgrades including a new station at Wixams and about £200mn for road works, according to a government official.
The overall package is still being negotiated with Comcast and the details could still change, people close to the talks said.
The total cost could also end up being higher, they said, with other elements of a broader support package beyond transport and infrastructure still to be decided.
Comcast has estimated the park will provide a £50bn boost for the UK economy and create about 28,000 jobs in total across creative, hospitality and construction industries during the building and when it opens in 2031.
The company has not yet announced which rides will be launched at its theme park in Bedford. The Universal Epic resort, which opened last month in Florida, includes lands themed on the How to Train Your Dragon and Harry Potter franchises.
About 8.5mn visitors are expected at Bedford in the first year. According to Comcast’s estimates, the UK would take in an additional £14.1bn in tax over 20 years from the site.
Britain’s Labour government has raced to secure inward investment into the UK while also promising to sweep aside local objections to big developments in order to boost economic growth. The effort has been driven in large part by the intense strain on the country’s public finances.
The government’s industrial strategy, published on Monday, promised to “remove planning barriers” and fast-track decisions to get more infrastructure projects off the ground.
Ministers also separately signed off on the expansion of Luton airport, which is expected to be needed as one of the main destinations for overseas visitors to the park.
The site is also hoped to become a crucial part of the Oxford-Cambridge corridor, including the delivery of the East West Rail.
Comcast’s project remains subject to a planning decision from the Ministry of Housing, Communities and Local Government, though Starmer has been clear that he supports the project, saying in April that he had “closed the deal” on the theme park.
Comcast, the Treasury, the Department for Transport and the Department for Culture, Media and Sport declined to comment.
