Reeves hints at support for Heathrow expansion

The Chancellor has hinted that the government will support the construction of a third runway at Heathrow Airport, stating that "sustainable aviation goes hand in hand with economic growth." She pointed out that sustainable fuels are changing the carbon emissions of aviation, and believes that clean energy and reducing carbon emissions are beneficial for economic growth.

While Rachel Reeves, in an interview with the BBC, said she would not comment on "speculation" and that the government would announce plans in due course, she emphasized that a third runway at Heathrow "would mean planes can land, rather than circling over London." She is expected to deliver a major speech on economic growth plans next week and announce support for the airport expansion.

The government has already indicated it wants to speed up approvals for housing and commercial developments near train stations and reduce environmental impact assessments. In an interview with the BBC’s “Laura Kuenssberg on Sunday” program, the Chancellor's tone on the economy was more optimistic than in recent months, after the government had repeatedly warned about the state of public finances. Reeves stated that she does not believe "low growth is our destiny" and pledged to go "faster and further" in removing barriers to investment.

When asked if she would also announce news about Heathrow Airport next week, she did not answer directly, but said the government had already approved expansions at London City Airport and Stansted Airport. “This is good for investment and trade for our country, and it’s good for families who want to go on affordable holidays,” she said. Reeves also stated that the government would consider joining arrangements between the EU and its neighbors aimed at promoting tariff-free trade.

Regarding London Mayor Sadiq Khan’s criticism that expanding Heathrow would have a detrimental impact on air quality, noise, and London's ability to achieve net-zero emissions, Reeves responded that "a lot has changed in the aviation sector," including investment in sustainable fuels and electric planes. She added, "I believe that clean energy and reducing carbon emissions are good for economic growth."

The Labour Party has made promoting economic growth a central task of the government, promising to raise living standards and achieve the highest sustained economic growth in the G7 before the next general election. However, the economy saw zero growth between July and September, and the latest monthly figures for November showed only a slight increase. The move to boost economic growth and a commitment to cut regulations has led some to question whether this is prioritizing environmental concerns.

A former Labour frontbencher said the Chancellor may appear "desperate" in her pursuit of growth. The expansion of Heathrow Airport has long been opposed by environmental groups, some Labour MPs, and residents living near the airport. Nevertheless, Energy Secretary Ed Miliband said last week that he would not resign if the government supported the construction of a third runway, insisting that clean energy is "absolutely complementary" to the government's growth mission.

London Mayor Khan stated that his opposition to a third runway has not changed, and he would support legal action if the government backs the proposal. There is currently no application for a third runway at Heathrow, and last December, airport officials said the company needed "clear direction" from the government by the end of 2025 to move forward with plans. The Chancellor also said that the government was "happy to look at those different proposals" as the current arrangements "are not good enough for business."