Chancellor invites proposals for a third runway at Heathrow – but London Mayor Sadiq Khan says he ‘remains opposed’ to expansion
Rachel Reeves has confirmed that the Government will back the construction of a controversial third runway at Heathrow, as well as further airport expansion plans, despite resistance from within her own party.
In a speech in Oxfordshire on Wednesday, the Chancellor emphasised that economic growth “will not come without a fight” as she unveiled measures to rejuvenate Britain’s struggling economy. Among these is the “badly needed” third runway at Heathrow, which, she claimed, would generate “over 100,000 jobs.”
However, the move is expected to encounter opposition from senior Labour figures, including London Mayor Sadiq Khan, who remains firmly against the project.
The proposed expansion would have significant implications for the local area, requiring the demolition of hundreds of homes and affecting villages such as Harmondsworth and Longford, which could be partially or wholly erased.
Ms Reeves defended the decision, stating:
“Heathrow is at the heart of the UK’s openness as a country. We are taking a totally different approach to airport expansion.
“This Government has already given its support to expansion at [London] City Airport and at Stansted, and there are two live decisions on Luton and Gatwick, which will be made by the Transport Secretary shortly.
“But as our only hub airport, Heathrow is in a unique position, and we cannot duck the decision any longer.
“I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected.”
The third runway was approved by Parliament in June 2018, though Heathrow Airport would still need to apply for a Development Consent Order for the project to proceed.
London Mayor Sadiq Khan reiterated his opposition, stating:
“I remain opposed to a new runway at Heathrow Airport because of the severe impact it will have on noise, air pollution and meeting our climate change targets.”
Meanwhile, Richmond Council’s leader, Gareth Roberts, reaffirmed the local authority’s opposition, warning that expansion would cause “significant harm” to communities already suffering from aviation-related disruptions.
Environmental campaigners staged a protest outside the venue where Ms Reeves delivered her speech.
Environmental regulations and further aviation plans
Ms Reeves also announced plans to “reduce environmental requirements placed on developers,” proposing instead that firms contribute to a “nature restoration fund.”
“This will allow firms to stop ‘worrying about the bats and the newts’ and get Britain building again,” she stated.
She further claimed that Heathrow’s expansion would comply with stringent rules on noise, air quality, and carbon emissions, adding that “great strides” were being made in transitioning to greener aviation.
In addition to the Heathrow expansion, the Government intends to collaborate with Doncaster Council to reopen an airport in South Yorkshire and develop a new logistics and manufacturing park at East Midlands Airport.
Transport secretary’s caution
Transport Secretary Heidi Alexander, who previously opposed Heathrow’s third runway while serving as London’s deputy mayor for transport, stressed that any plans must align with the UK’s legal, climate, and environmental obligations.
“Tackling capacity constraints at Heathrow Airport could unlock growth benefits that a world-class aviation sector can provide,” she said in a Commons statement.
“That’s why the Government supports and is inviting proposals for a third runway at Heathrow, to be brought forward by the summer. Expansion could inject billions into our economy, create over 100,000 extra jobs, strengthen Heathrow’s status as a global passenger and air freight hub, and deliver major benefits for passengers, including lower fares and reduced delays.”
The Government has pledged to swiftly review the Airports National Policy Statement (ANPS) upon receiving Heathrow’s proposals.
Additionally, Ms Alexander announced a £63 million investment for the Advanced Fuels Fund to support the development of Sustainable Aviation Fuel.
Ryanair boss criticises the chancellor
Despite the Government’s enthusiasm for expansion, Ryanair CEO Michael O’Leary dismissed Ms Reeves’ proposals, claiming she “hasn’t a clue” about generating growth in aviation.
“The Government should scrap air passenger duty (APD) rather than waffle on about Heathrow expansion, which is a dead cat that won’t happen before the 2040s at the earliest,” he remarked.
In her October 2024 budget, Ms Reeves announced an increase in APD from 2026/27. Economy-class short-haul flights will see APD rise from £13 to £15.
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At a press conference in London, Mr O’Leary criticised the move:
“The UK continues to lose out on enormous growth opportunities because you have a Chancellor who hasn’t a clue about how to deliver growth, has had five years to get ready for it, and yet has managed to screw it up in her first budget.
“Nothing is designed to damage growth faster than increasing taxes on air travel.”
No clear timeline for completion
Ms Reeves has declined to specify a timeline for when Heathrow’s third runway may become operational.
When pressed by ITV’s Robert Peston on an expected timeframe, she responded:
“The plans will come forward this summer.”
When further questioned if the runway would be ready in 10, 15, or 20 years, she remarked:
“It will be up to Heathrow to set out their plans. This is a private investment.
“But what we’re saying to Heathrow is our planning reforms and our support for the third runway mean that we can make progress.”
The Chancellor expressed frustration over the stagnation in UK airport infrastructure, declaring:
“It is absolutely ridiculous that there has not been a new runway built in the UK since the 1940s.
“We’re going to do things differently. We’re reforming the planning system, we’re reforming the regulation system so that big projects like this can actually get off the ground and the planes can take off.”
With opposition from within Labour, environmental groups, and even major aviation figures, the future of Heathrow’s third runway remains uncertain. However, with the Chancellor’s firm backing, the controversial project is once again set to take centre stage in Britain’s infrastructure debate.
