A £215M Government deal to help build 100,000 homes in Oxfordshire by 2031 recognises the county's 'global significance' and could lead to millions more in the future.

In yesterday's Budget the Chancellor announced the multi-million pound funding package to build the infrastructure and affordable housing the county has planned for.

But senior council officials said the Government's show of faith in the county – the only area to secure a deal in the Budget – was only the 'first step' in its support for Oxfordshire, putting it in line for more funding in the future.

The deal will see Oxfordshire given £150m over the next five years to improve infrastructure, which includes road, rail, schools and health centres.

It comes after a National Infrastructure Commission urged the Government to back growth – including one million homes – along the Oxford to Cambridge corridor.

The Government would also give the county £60m to build affordable housing and a further £5m to bring forward a joint delivery plan for the money by the end of January.

In return Oxfordshire's six local authorities must commit to plan and support the delivery of 100,000 homes by 2031.

Chairman of Oxfordshire Growth Board, Bob Price, said: "The Government has identified us as a significant target area for economic growth.

"It will support this rapid growth and address the severe housing shortage we are facing."

Mr Price said the affordable housing funding could be used to increase social housing on proposed schemes such as the Oxpens development.

In the next two months officials from all the local authorities will identify where the money could be spent to maximise the delivery of new homes.

County council leader Ian Hudspeth said: "We will be looking at how we can use the money to unlock key sites – it's great news, you can't have the houses without the infrastructure in place and this will make sure we hae that.

"We are not going to deliver everything with that £150m but it's a really good first step and puts us in a great place to access more sums in the future.

"It's really significant that Oxfordshire was mentioned specifically in the budget – no other areas have secured such a deal."

Outstanding bids to support the development of Didcot Garden Town, the A40 corridor between Oxford and Witney, and improvements north of Oxford, will be considered separately and could bring in a further £500m in the new year.

Senior council officials were 'very optimistic' the Government's deal with Oxfordshire would lead to the bids being successful.

A Government consultation launched in September revealed Oxfordshire – originally planning for 5,000 homes a year – only needed 3,415 a year.

But this 'baseline figure' did not take economic growth into account and urged regions to be more ambitious.

Yesterday the Philip Hammond rewarded the county's ambition by giving £215m to bring forward the original Strategic Housing Market Assessment (SHMA) figures of 100,000 homes by 2031.

September's consultation had given hope to groups like the Begbroke and Yarnton Green Belt campaign – fighting against plans for 3,990 homes on protected land north of Oxford.

Group leader Giles Lewis said: "There is protection of the Green Belt offered by the Chancellor and we take heart from that."

Chairman of the Oxfordshire Local Enterprise Partnership, Nigel Tipple, said yesterday was an 'historic' day that recognised the county's global significance.

He said: "It is clear that – as a region – Oxfordshire presents many global opportunities and strengths and this has certainly been noticed by Philip Hammond.

"For many in Oxfordshire – yesterday's Budget was a historic one and has further demonstrated our economy offers real global potential."

Communities Secretary, Sajid Javid, said: "We want to build a Britain that is fit for the future with the homes our country needs, so everyone can afford a place to call their own.

"That’s why we are investing up to £215m into Oxfordshire, to support an ambitious housing deal that will deliver 100,000 new homes in an area of high demand.

"The deal is exactly the sort of ambition this Government wants to see so we can get Britain building."

The county further benefitted from yesterday's budget with the announcement that phase two of East West Rail – from Bicester to Bedford and Milton Keynes to Princes Risborough would be completed by 2024.

A new independent company will be formed to accelerate the central section between Bedford and Cambridge.

Chairman of East West Rail consortium, Mark Shaw, said: "There have been countless twists and turns in our campaign to get this vital piece of infrastructure built.

"Now, finally, we know with certainty that the section between Oxford and Bedford, and Aylesbury and Milton Keynes , will be delivered by the early 2020s."