Government backs Heathrow’s third runway for economic growth

THE GOVERNMENT has announced its support for a third runway at Heathrow Airport, with chancellor Rachel Reeves stating that the expansion would drive economic growth while aligning with climate commitments.

"I can confirm today that this government supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer," Reeves said in a speech, adding that the project "would unlock growth."

Prime minister Keir Starmer has made infrastructure projects a key part of his economic agenda since taking office in July. Writing in The Times on Wednesday, he said the government would "kick down the barriers to building, clear out the regulatory weeds and allow a new era of British growth to bloom."

Heathrow, which handled a record number of passengers last year, welcomed the decision. "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," Heathrow CEO Thomas Woldbye said.

The expansion plan has faced legal and environmental challenges. In 2020, the Supreme Court overturned a ruling that had blocked construction on environmental grounds, clearing the way for Heathrow to proceed.

The project was initially expected to begin in 2022 under the previous Conservative government but faced delays due to regulatory hurdles and the impact of the Covid-19 pandemic.

The estimated cost of building the runway was £14 billion a decade ago, but the figure is now expected to be significantly higher due to inflation.

Reeves, speaking in Oxfordshire, said, "We will work with the private sector to deliver the infrastructure that our country desperately needs."

She also announced plans for a Growth Corridor between Oxford and Cambridge, aimed at improving transport links and housing.

The government estimates that the initiative could boost the UK economy by up to £78 billion by 2035.

Climate concerns

Reeves stated that the third runway would be developed "in line with our legal, environmental and climate objectives."

Energy secretary Ed Miliband, who has previously opposed Heathrow’s expansion over environmental concerns, said any new runway must align with the UK's goal of achieving net zero carbon emissions by 2050.

Bob Ward, a researcher at the London School of Economics, welcomed the government's focus on economic growth and net zero. However, he cautioned that the project "should not proceed until the government shows exactly how it will be compatible with the UK's carbon budgets and net zero target."

The government is also expected to support expansion plans at Gatwick and Luton airports, having already approved upgrades at Stansted and London City airports.

The UK economy has remained stagnant since Labour's landslide election victory in July. Some opposition lawmakers and analysts have linked the slow growth to Reeves’ decision in her first budget to raise business taxes.

(With inputs from AFP)