Reeves Says Need for Growth Trumps Opposition Amid Heathrow Speculation

The chancellor said opposition to measures that will boost growth have been a problem for too long in the UK.
Reeves Says Need for Growth Trumps Opposition Amid Heathrow Speculation

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The chancellor said opposition to measures that will boost growth have been a problem for too long in the UK.

Chancellor Rachel Reeves is set to face down prominent Labour critics of plans to expand Heathrow, saying the need for economic growth trumps other concerns.

The chancellor is expected to use a speech on growth next week to support the proposed third runway at the west London airport and endorse expansion at Gatwick and Luton Airports.

The plans will face fierce resistance from environmental groups and senior Labour figures including London Mayor Sir Sadiq Khan and Energy Secretary Ed Miliband, who have previously spoken out against a third runway at Heathrow.

Khan won a third term in 2024 on a platform of opposing any expansion of airports in the capital.

Even Prime Minister Sir Keir Starmer voted against Heathrow expansion in June 2018.

Reeves said she would not comment on ā€œspeculationā€ about Heathrow but pointed out that the government has already taken ā€œbig decisionsā€ by backing expansion plans at London City and Stansted Airports.

At a Bloomberg event at the World Economic Forum in Davos, Switzerland, the chancellor was challenged on whether Heathrow expansion would cause problems with Khan and Miliband.

She said: ā€œThis was the problem with the last governmentā€”that there was always somebody that said, ā€˜Oh yes, of course we want to grow the economy but we donā€™t like that investment, we donā€™t like that wind farm, we donā€™t like those pylons, we donā€™t like that airport, we donā€™t want that housing near us.ā€™

ā€œBut the answer canā€™t always be ā€˜noā€™ and thatā€™s been the problem in Britain for a long time, that when there was a choice between something that would grow the economy and anything else, anything else always won.

ā€œNow, of course, there are other things that matter, but when we say that growth is the number one mission of this government, we mean it, and that means it trumps other things.

ā€œAnd so weā€™re making pro-growth decisions in the national interest.ā€

At Prime Ministersā€™ Questions, Starmer also refused to be drawn on the Heathrow speculation but added, ā€œAs a government, we are committed to growth, we are committed to the aviation sector, and to our climate obligations.ā€

EasyJet Chief Executive Kenton Jarvis backed the expected announcement from the chancellor, telling reporters: ā€œWe welcome the decisive action by the government to grow the economy.

ā€œWeā€™ve always said that aviation, the industry, is an enabler of economic growth.

ā€œWhen it comes to Heathrow, Iā€™ve always thought Heathrow would fit our network of primary airports with great catchment areas.

ā€œIt would be a unique opportunity to operate from Heathrow at scaleā€”because obviously right now itā€™s slot-constrainedā€”and give us an opportunity to provide lower fares for UK consumers that currently at Heathrow just have the option of flag carriers.

ā€œIt fits with our network, weā€™re present at all the other major European airports like Schiphol, Charles de Gaulle, Orly, Geneva etc.ā€

International passengers walk through the arrivals area at Terminal 5 at Heathrow Airport in London on Nov. 26, 2021. Leon Neal/Getty Images

Opponents of airport expansion claim boosting flights would be damaging for the environment.

Alethea Warrington, head of aviation at climate charity Possible, said: ā€œApproving airport expansions would be a catastrophic misstep for a government which claims to be a climate leader.

ā€œThis huge increase in emissions wonā€™t help our economy, and would just encourage the small group of frequent flyers who take most of the flights, further worsening the UKā€™s huge tourism deficit.ā€

She added that the government should focus on supporting ā€œaffordable and low-carbon trains and buses.ā€

Heathrowā€™s third runway project secured parliamentary approval in June 2018 but has been delayed by legal challenges over the environmental impact and the COVID-19 pandemic.

There is currently no Development Consent Order application for the scheme, and it is up to Heathrow if it submits one.

Transport Secretary Heidi Alexander has a deadline of Feb. 27 to make a decision on whether to allow Gatwick to bring its existing emergency northern runway into routine use.

She has a deadline of April 3 to decide on Luton Airportā€™s bid to raise its cap on passenger numbers.

There is also speculation that Reeves will support the Lower Thames Crossingā€”a proposed new road crossing between Kent and Essexā€”and a Universal Studios theme park in Bedford.



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