The so-called Oxford-Cambridge corridor is one of the only UK regions outside of London which is a net contributor to Britain’s economy.
Ministers hope they can spark further economic growth by supporting the technology, manufacturing and research sectors in the area.
New house building and transport links between Oxford, Cambridge, and other major settlements like Milton Keynes and Bedford, are among the measures which are being slowly rolled out to achieve this.
Development corporations have previously been used to spearhead major regeneration projects in Britain – including the Olympic Park in east London.
They have however been criticised as undemocratic and unaccountable, as they take planning powers away from local councils.
A government source said: “Our plans for the Oxford-Cambridge corridor are ambitious.
“The prize on offer is to have the Silicon Valley of Europe here in Britain – bringing more jobs and more vibrant places to live.
“We have the right economic plan and this week the chancellor will set out how the regions are crucial to the next decade of growth.”