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Reeves says need for growth trumps opposition amid Heathrow plans

22nd Jan 2025 09:22

(Alliance News) - Rachel Reeves is set to face down prominent Labour critics of plans to expand Heathrow, saying the need for economic growth trumps other concerns.

The UK chancellor is expected to use a speech on growth next week to support the proposed third runway at the west London airport and endorse expansion at Gatwick and Luton Airports.

The plans will face fierce resistance from environmental groups and senior Labour figures including London Mayor Sadiq Khan and Energy Secretary Ed Miliband have previously spoken out against a third runway at Heathrow.

Khanwon a third term in 2024 on a platform of opposing any expansion of airports in the capital.

Even Prime Minister Keir Starmer voted against Heathrow expansion in June 2018.

Reeves said she would not comment on "speculation" about Heathrow but pointed out that the government has already taken "big decisions" by backing expansion plans at London City and Stansted Airports.

At a Bloomberg event at the World Economic Forum in Davos, Switzerland, the chancellor was challenged on whether Heathrow expansion would cause problems with Khanand Miliband.

She said: "This was the problem with the last government – that there was always somebody that said: 'Oh yes, of course we want to grow the economy but we don't like that investment, we don't like that wind farm, we don't like those pylons, we don't like that airport, we don't want that housing near us'.

"But the answer can't always be 'no' and that's been the problem in Britain for a long time, that when there was a choice between something that would grow the economy and anything else, anything else always won.

"Now, of course, there are other things that matter, but when we say that growth is the number one mission of this government, we mean it, and that means it trumps other things.

"And so we're making pro-growth decisions in the national interest."

EasyJet PLC Chief Executive Kenton Jarvis backed the expected announcement from the Chancellor, telling reporters: "We welcome the decisive action by the government to grow the economy.

"We've always said that aviation, the industry, is an enabler of economic growth.

"When it comes to Heathrow, I've always thought Heathrow would fit our network of primary airports with great catchment areas.

"It would be a unique opportunity to operate from Heathrow at scale – because obviously right now it's slot-constrained – and give us an opportunity to provide lower fares for UK consumers that currently at Heathrow just have the option of flag carriers.

"It fits with our network, we're present at all the other major European airports like Schiphol, Charles de Gaulle, Orly, Geneva etc."

Opponents of airport expansion claim boosting flights would be damaging for the environment.

Alethea Warrington, head of aviation at climate charity Possible, said: "Approving airport expansions would be a catastrophic misstep for a government which claims to be a climate leader.

"This huge increase in emissions won't help our economy, and would just encourage the small group of frequent flyers who take most of the flights, further worsening the UK's huge tourism deficit."

She added that the government should focus on supporting "affordable and low-carbon trains and buses".

Jenny Bates, transport campaigner at Friends of the Earth, said: "A decision to green-light another runway at Heathrow would be hugely irresponsible in the midst of a climate emergency and given 2024 was the first year to surpass the all-important 1.5 degrees threshold.

"It would also fly in the face of the prime minister's promise to show international leadership on climate change."

Heathrow's third runway project secured parliamentary approval in June 2018 but has been delayed by legal challenges over the environmental impact, and the coronavirus pandemic.

There is currently no Development Consent Order application for the scheme, and it is up to Heathrow if it submits one.

Transport Secretary Heidi Alexander has a deadline of February 27 to make a decision on whether to allow Gatwick to bring its existing emergency northern runway into routine use.

She has a deadline of April 3 to decide on Luton Airport's bid to raise its cap on passenger numbers.

There is also speculation that Reeves will support the Lower Thames Crossing – a proposed new road crossing between Kent and Essex – and a Universal Studios theme park in Bedford.

By David Hughes and Neil Lancefield

Press Association: Finance

source: PA

Copyright 2025 Alliance News Ltd. All Rights Reserved.

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