Rachel Reeves’ support for a proposed third runway at Heathrow, along with expansions at Gatwick and Luton airports, has been criticized as “desperate,” especially as the chancellor encounters dissent within the Labour party.
Set to deliver a series of initiatives aimed at bolstering economic growth in a speech scheduled for later this month, the chancellor is anticipated to green-light these airport expansions.
Reeves is poised to firmly endorse the long-discussed addition of a third runway at Heathrow, the busiest airport in the UK, which would also see the full-time use of a second strip at Gatwick and increased capacity for Luton, as reported first by Bloomberg.
When questioned in the House of Commons on Tuesday about her anticipated announcement regarding Heathrow’s expansion next week, Reeves replied, “I’m not going to address rumors. However, it is clear that this government is dedicated to fostering economic growth and transforming this into a favorable environment for businesses to invest and operate.”
The chancellor has been exploring policies to significantly enhance growth, projected at 1.6% for this year, while also seeking substantial spending cuts to offset a rise in borrowing costs and a dip in the pound experienced earlier this month.
At last October’s investment summit, the government celebrated the enlargement of Stansted airport, with the prime minister highlighting a £1 billion investment from Manchester Airports Group as vital for revitalizing the economy through substantial investments.
Despite facing opposition from energy secretary Ed Miliband, who is against such expansions due to environmental concerns, Reeves is likely to support the Heathrow expansion. Miliband’s role entails ensuring the UK adheres to its carbon budget, which sets limits on emissions to meet net zero targets by 2050.
This spring, the seventh carbon budget from the Climate Change Committee (CCC) will be released, which has previously ruled that “there should be no net airport expansion unless aviation’s carbon intensity surpasses the government’s emissions reduction trajectory and can accommodate the resulting demand.”
Reeves’ plan will also encounter resistance from London’s Labour mayor, Sadiq Khan, whose spokesperson stated: “The mayor has a longstanding opposition to any airport expansions around London due to the detrimental impacts on air quality, noise pollution, and London’s efforts to achieve net zero by 2030.”
Many backbenchers are anticipated to oppose the decision, particularly those representing constituencies neighboring the airports and those advocating for climate action.
Clive Lewis, MP for Norwich South, remarked, “The CCC has called for a halt to ‘no net airport expansion’ in the UK, citing its incompatibility with the government’s own net zero strategy.”
Doug Parr, policy director for Greenpeace UK, expressed, “Reviving the notion of a third runway at Heathrow, in the hope that a stretch of tarmac will boost the UK’s GDP, appears to be a sign of desperation. The supposed economic benefits are questionable at best while the environmental costs—climate damage, noise, and air pollution—are undeniable.”
Reeves is likely to assert that the government is implementing a sustainable aviation fuel (SAF) mandate requiring that by the end of this year, 2% of all jet fuel must be SAF, which she argues will mitigate the impact of any expansion.
Additional proposed initiatives aimed at stimulating growth include the Lower Thames Crossing road tunnel and a Universal Studios theme park in the Bedford area. Local MP Mohammad Yasin noted on Tuesday that he has had discussions regarding this proposal with Reeves.
The chancellor has consistently supported the idea of a third runway at Heathrow, voting in favor of it in 2018, while Prime Minister Keir Starmer opposed it.
Heathrow executives are expected to present updated runway plans later this year, which may be less ambitious than previous proposals that would have required crossing nearby motorways.
Under the last government, Parliament approved the concept of a third runway in principle, although Heathrow has yet to submit a full planning application.
Gatwick’s proposal to convert its existing emergency runway into a second operational runway is currently under review by planning inspectors and is expected to receive a decision from Transport Secretary Heidi Alexander by February 27.
A similar order for Luton’s expansion will be decided by Alexander in April.
In 2023, both Gatwick and Luton filed their plans with the Planning Inspectorate, which typically conducts thorough evaluations of significant national projects lasting at least a year before offering recommendations to ministers, who ultimately approve development consent orders.
A government representative stated, “We refrain from commenting on speculations. All expansion proposals must clearly demonstrate their contribution to economic growth while complying with current environmental obligations.”
