Rachel Reeves has strongly indicated her potential support for a third runway at Heathrow Airport, emphasizing her readiness to make tough choices to stimulate economic growth.
The Chancellor is scheduled to deliver an impactful address this week, outlining her strategy for enhancing the British economy through sweeping changes to planning regulations and expediting construction initiatives.
On Sunday, she addressed the ongoing political discourse about the expansion of Europe’s busiest airport, asserting that a third runway could lead to environmental improvements, such as reducing the number of planes circling over London, thus contributing to cleaner air.
Cabinet members who have previously opposed the Heathrow expansion are now preparing to reconsider their stance. Sources reveal that Darren Jones, the Chief Secretary to the Treasury, who previously labeled the environmental implications of a third runway as “unacceptable” in 2018, no longer considers this a reason for resignation.
Culture Secretary Lisa Nandy, who also voted against the expansion back in 2018, has stated that she too would not resign over the issue. Last week, Ed Miliband, known as the most vocal opponent of aviation expansion within the cabinet, similarly dismissed the idea of resigning.
Steve Reed, the Environment Secretary, is likely to retract his earlier opposition. He mentioned over the weekend that his opposition in 2018 stemmed from his support for expanding Gatwick Airport instead, which he believed would benefit his constituency in south London.
Ministers are expected to formally approve any announcement at a cabinet meeting before Reeves’ speech on Wednesday. In that address, the Chancellor is anticipated to advocate for a third runway at Heathrow, alongside expansions at Gatwick and Luton airports.
In an interview with the BBC’s Laura Kuennsberg on Sunday, the Chancellor stated that “sustainable aviation and economic growth are interconnected.”
“This government has already approved expansions at London City and Stansted Airports, both decisions having been stalled by the prior administration,” she noted. “We are taking action and delivering, which will benefit investment, trade, and families looking for more affordable holiday options.”
In response to past comments made by London Mayor Sir Sadiq Khan regarding air quality and the UK’s net zero ambitions being affected by a third runway, Reeves pointed out that “much has evolved regarding aviation.”
She argued that “a third runway would enable planes to land directly at Heathrow rather than circling London, and advances in sustainable aviation fuels are helping reduce carbon emissions from flights.”
While discussing airport expansion plans with Sky News’ Trevor Phillips on Sunday, Reeves assured that any related announcements would be made “with full collective ministerial responsibility.” Kemi Badenoch, the Conservative leader, expressed her strong support for a third runway as well.
Campaigners, however, claim that this proposal would severely undermine the UK’s climate goals. Critics further argue that if approved, constructing a third runway would be both financially burdensome and time-intensive, lacking the anticipated economic returns.
As part of their economic growth strategy, ministers revealed plans over the weekend to simplify home-building processes around commuter stations in England. Reeves explained to the Observer that the goal is “to accelerate development, favor building—especially housing—and to designate these areas as ideal for new homes.”
The Chancellor is also expected to announce additional measures during her speech aimed at reducing bureaucratic hurdles to promote further construction efforts. The government has committed to delivering 1.5 million new homes and securing decisions on 150 major infrastructure initiatives by the end of the parliamentary term. To date, it has made 13 planning decisions, approving nine nationally significant infrastructure projects, including airports, energy sites, and housing developments.
In another initiative that could potentially stimulate economic growth, the Chancellor indicated on Sunday her openness to exploring a tariff-free trading agreement with Europe, following a proposal by the EU trade commissioner, Maroš Šefčovič.
Šefčovič mentioned this week that the UK might consider joining the pan-Euro-Mediterranean convention in a post-Brexit shift with the EU. Although Labour has excluded rejoining the EU customs union or single market, it has committed to pursuing closer economic ties with Brussels.
“I found Maroš Šefčovič’s suggestion that the UK could fit into that pan-European and Mediterranean customs structure quite intriguing,” Reeves stated on Sky. “We are fully prepared to assess various proposals, recognizing that the previous administration’s deal is not functioning effectively.”
“It’s not working adequately for small exporters or larger enterprises. We are pragmatic enough to acknowledge this, while the previous government maintained there were no issues.” The Conservative Party criticized her comments, arguing they risked “undoing Brexit through indirect means.”
