Skip to content
Search

Latest Stories

Government backs Heathrow’s third runway for economic growth

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.

Rachel-Reeves-Getty

'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. (Photo: Getty Images)

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)

More For You

single-use vapes-iStock

Analysis by Material Focus estimates that 8.2 million vapes are discarded or littered each week in the UK—equivalent to 13 every second. (Representational image: iStock)

iStock

Shops told to clear single-use vapes before ban starts on June 1

SHOPS across the UK have until 1 June 2025 to sell off remaining stocks of single-use vapes before a nationwide ban comes into force.

The legislation, confirmed last year, follows a government consultation that showed strong support for restricting their sale and supply.

Keep ReadingShow less
Trump’s Promise: TikTok Deal Before April 5 to Avoid Ban

This is not the first time that TikTok has been under scrutiny in the United States

Getty

Trump promises TikTok deal before April 5 to prevent ban

As the clock ticks towards the April 5 deadline, the future of TikTok in the United States remains uncertain, with President Donald Trump promising that a deal to resolve the app's ongoing issues will be struck before the deadline. The central issue at hand is whether TikTok's parent company, ByteDance, will be forced to divest the popular social media platform or face a ban in the U.S.

In a statement made aboard Air Force One late on Sunday, Trump confirmed that there was "tremendous interest" from potential buyers looking to acquire TikTok. He expressed his desire for the platform to "remain alive" and emphasized that multiple buyers were keen on striking a deal, suggesting that a solution would be reached before the deadline.

Keep ReadingShow less
Primark-London-Getty

During his 15-year tenure, Marchant expanded Primark’s store network to more than 450 locations across 17 countries in Europe and the United States. (Photo: Reuters)

Primark chief Paul Marchant steps down after misconduct probe

PAUL MARCHANT, the head of fashion retailer Primark, has resigned with immediate effect after admitting to an "error of judgment" in his behaviour towards a woman in a social setting.

Associated British Foods (AB Foods), Primark's parent company, announced his resignation on Monday.

Keep ReadingShow less
Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

Jaguar’s bold gamble: Can it woo young, wealthy drivers with a £123k EV?

JAGUAR’S ambition to seduce younger, richer drivers was on full display in Paris with a presentation of its newest prototype, the Type 00, which promises all-electric luxury... at a steep price.

The low-slung, muscular-looking concept car presented to European reporters last Friday (21) prefigures a production model expected mid-2026 at a base cost of €150,000 (£123,472.8).

Keep ReadingShow less
Starmer-Trump-Getty

Trump has suggested the possibility of a 'great' trade deal that could help the UK mitigate the impact of tariffs he has pledged to introduce. (Photo: Getty Images)

Starmer, Trump talk trade deal progress in 'productive' discussion

KEIR STARMER and Donald Trump spoke on Sunday about ongoing UK-US trade negotiations, with Downing Street describing the talks as "productive."

Since leaving the European Union, the UK has been working to secure a trade agreement with the United States. Successive British governments have pursued a deal, but it has remained elusive.

Keep ReadingShow less