Reeves set to welcome Heathrow expansion as growth plans outlined

According to the BBC, Chancellor Rachel Reeves is expected to announce her support for the expansion of Heathrow Airport on Wednesday, while also unveiling Labour's latest economic growth plan. This move is intended to encourage the airport to submit a planning application for a third runway in principle, which would be the first step in the process and part of a series of major speeches she is giving aimed at boosting economic growth.

This announcement is likely to anger environmentalists, including those within Reeves' own Labour party, who have opposed the construction of a third runway for decades due to concerns about its environmental impact. The Conservative Party has criticized Labour's plan as "rushed and cobbled together." The Heathrow announcement comes weeks after Labour hinted that it would support the controversial airport expansion plan.

When asked on Sunday whether the government would support a third runway, Reeves told the BBC that she would not comment on "speculation," but added that "sustainable aviation and economic growth go hand in hand." The government cannot prejudge the outcome of a formal planning application for a specific runway proposal, and according to the BBC, no public funding for the project will be announced on Wednesday.

Heathrow Airport has long argued that expansion is essential to help it catch up with its rival European airports, which handle more passengers with fewer runways. In December, airport officials said they needed a "clear indication" from the government by the end of 2025 to move forward with the plans. However, questions remain about funding for works around London's M25 motorway and other transport links. This road may need to be diverted through a tunnel under the third runway. Another potential hurdle is how much of the early development costs the Civil Aviation Authority (CAA) will allow Heathrow to pass on to airlines.

Many airlines have already expressed concerns about the potential costs. The CAA was among the regulators that briefed the Chancellor at 11 Downing Street earlier this month on how to boost economic growth. Another issue is how Reeves' own party may respond to a third runway at Heathrow. The office of the Mayor of London, Sadiq Khan, told the BBC that he has "long opposed any expansion of airports around London" due to the impact on air quality and noise.

The government wants to develop thousands of homes and a new rail link in the area between Oxford and Cambridge. The government will also review the so-called "Green Book" rules, which are guidelines issued by the Treasury on how to evaluate policies, programs and projects. The government says these rules have historically skewed infrastructure spending towards areas that are already growing rapidly, mainly in the south. A senior minister said they were making big, long-term decisions that previous governments had ignored, and they knew "the benefits will not be seen until after this parliament, but these are the right long-term decisions." The Treasury is confident "there will be spades in the ground before that."

A senior minister said that a key difference was that the government would show that when the growth agenda clashed with other things, they would "make the difficult decisions." Labour has been talking about the importance of economic growth in the months before and after the national election. Reeves has previously hinted that large projects like Heathrow need to be pushed forward to help the UK economy grow. However, despite the government's rhetoric about growth, the economy remains sluggish.

January figures showed that the economy grew in November, but the 0.1% increase was lower than expected. The economy has been faltering, and critics argue that the pessimistic tone struck by ministers over the summer and autumn has made things worse. Some ministers have privately admitted that they got it wrong in hindsight. They now seem to be making up for lost time by constantly referring to growth. The Conservative Party has hit back at Labour's growth plan.

Shadow Chancellor Mel Stride said: "The biggest obstacle to growth in this country is Rachel Reeves, Keir Starmer, and their job-destroying budget." He also said: "A cobbled-together growth announcement in the 2030s does nothing for businesses that are currently making redundancies." Liberal Democrat Treasury spokesperson Daisy Cooper said: "Trying to boost growth without fixing our trade relationship with Europe is like driving a car with the handbrake on." The Liberal Democrats are calling for "a new UK-EU customs union, which would give the economy a rocket boost."