January 27, 2025
2 mins read

Reeves hints at Heathrow expansion

06/07/2024. London, United Kingdom. Rachel Reeves, Chancellor of the Exchequer arrives for Prime Minister Keir Starmer first Cabinet meeting in 10 Downing Street. Picture by Simon Dawson / No 10 Downing Street

Chancellor Rachel Reeves hints at backing Heathrow’s third runway, framing sustainable aviation as key to the UK’s economic growth strategy.

Chancellor Rachel Reeves has dropped a significant hint about government backing for the long-debated third runway at Heathrow Airport. Speaking on the BBC’s Sunday with Laura Kuenssberg, Reeves linked sustainable aviation with economic growth, describing the project as a potential boost for investment, trade, and affordable travel for families.

“A third runway will mean that instead of circling London, flights can land, reducing emissions and delays,” Reeves explained. She emphasised that advancements in sustainable fuel and electric aviation technology are already transforming the environmental impact of flying.

While Reeves refrained from confirming any immediate decisions, she is expected to formally endorse Heathrow expansion in a major speech next week outlining plans to boost the UK economy. The announcement is likely to build on recent government initiatives to fast-track housing and commercial developments near train stations and ease environmental impact assessments.

Labour has made sustained economic growth a central mission, pledging to achieve the highest growth rate among G7 nations by the next election. However, critics have raised concerns that this ambition could sideline environmental priorities.

 While Reeves refrained from confirming any immediate decisions, she is expected to formally endorse Heathrow expansion in a major speech next week outlining plans to boost the UK economy.

Green groups, some Labour MPs, and London Mayor Sadiq Khan remain opposed to the expansion, citing risks to air quality, noise pollution, and the capital’s net-zero goals. Khan has vowed to support legal challenges if the government approves the project. Reeves responded to these concerns by pointing to significant technological advancements since the last major debate on Heathrow in 2018, arguing that clean energy and sustainable aviation are complementary to economic growth.

The Heathrow debate also highlights divisions within Labour. In 2018, key figures, including Energy Secretary Ed Miliband and Environment Secretary Steve Reed, opposed the third runway. Miliband recently clarified that he would not resign if the government backs the expansion, stating that clean energy and growth are “absolutely complementary.”

“A third runway will mean that instead of circling London, flights can land, reducing emissions and delays.” – Rachel Reeves, Chancellor

Reeves’s comments come as Heathrow Airport’s CEO urged the government to provide clarity on expansion plans by 2025, emphasising the need for long-term strategic decisions. The chancellor also signalled a willingness to explore new trade arrangements with the European Union, including joining the Pan-Euro-Mediterranean Convention, to facilitate tariff-free trade and address post-Brexit challenges.

Labour’s dual focus on growth and sustainability will be under scrutiny as the party seeks to balance economic ambition with environmental responsibility.

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