Chancellor Rachel Reeves has given her official backing to plans for a third runway at Heathrow, arguing that the expansion could create more than 100,000 jobs and significantly boost the nation’s economic output.
“A third runway is badly needed,” she said, pointing to projections suggesting a 0.43% rise in potential GDP by 2050 if the airport is expanded.
Reeves emphasised Heathrow’s central role in the UK’s global connectivity, noting that the airport facilitates three-quarters of all British long-haul flights, handles over 60% of UK air freight, and served around 15 million business travellers in 2023 alone. “Heathrow is at the heart of the UK’s openness as a country,” she said. “It connects us to emerging markets all over the world, opening up new opportunities for growth. Yet for decades its growth has been constrained. Successive studies have shown that this really matters for our economy.”
Addressing environmental and community concerns, Reeves said Heathrow’s operators are committed to meeting stringent requirements on noise, air quality and carbon emissions, and she highlighted ongoing efforts to decarbonise the aviation sector. “We are already making great strides in transitioning to cleaner and greener aviation,” she added. The chancellor’s endorsement underscores the government’s view that airport expansion is critical to maintaining the UK’s competitive edge while meeting future travel demand.
Reacting to announcement, Heathrow CEO Thomas Woldbye said: “We welcome the Chancellor’s support for the aviation industry and recognition of the critical role we play for the economy and in delivering growth across the UK.
“Heathrow is the UK’s gateway to growth and prosperity. A third runway and the infrastructure that comes with it would unlock billions of pounds of private money to stimulate the UK supply chain during construction. Once built, it would create jobs and drive trade, tourism and inward investment to every part of the country. It would also give airlines and passengers the competitive, resilient hub airport they expect while putting the UK back on the map at the heart of the global economy. With strict environmental safeguards, it would demonstrate that by growing our economy responsibly we can ensure our commitments to future generations are delivered.
“This is the bold, responsible vision the UK needs to thrive in the 21st century, and I thank the Government and Chancellor for their leadership. It has given us the confidence to confirm our continued support for expanding Heathrow. Successfully delivering the project at pace requires policy change – particularly around necessary airspace modernisation and making the regulatory model fit for purpose. We will now work with the Government on the expected planning reform and support Ministers to deliver the changes which will set us on track to securing planning permission before the end of this Parliament.”
Reacting to the chancellor’s speech, Rosie Downes, head of campaigns at Friends of the Earth, said: “Rachel Reeves’ ‘growth trumps all’ approach is the kind of dangerously short-sighted thinking that has helped cause the climate crisis and left the UK one of the most nature-depleted countries in the world.
“Giving the go-ahead to airport expansion by depending on new, unreliable technologies, like ‘sustainable aviation fuels’ would be a reckless gamble with our future and risks the UK missing critical climate reduction targets even if we rapidly expand renewable energy.
“Similarly, allowing developers to bulldoze their way through crucial nature protections and safeguards will further diminish our seriously under-threat wildlife and natural environment.
“The net zero economy is the UK’s fastest growing sector, the government should seize the huge benefits that building a greener future will bring through cheap homegrown renewable energy and warm well-insulated homes, not back damaging projects like airports and the Lower Thames Crossing.
“Sacrificing nature and our climate isn’t leadership, it’s rash, short-sighted and a sure-fire way to lose the trust of those who believed Labour’s election promises on the environment. Instead the Chancellor must embrace green growth.”
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Reeves gives official backing to plans for a third runway at Heathrow