Chancellor Rachel Reeves has dismissed criticism over the Government’s support for Heathrow Airport’s expansion, arguing that the UK economy will stagnate if objections constantly halt new infrastructure projects.
Speaking at a medical equipment firm in Oxfordshire, Ms Reeves emphasised that the answer to economic development “can’t always be no” as London Mayor Sir Sadiq Khan vowed to oppose plans for a third runway at Heathrow.
Her stance has put her at odds with some within Labour, as well as environmental campaigners, who argue that expanding the airport would worsen air pollution and hinder the UK’s ability to meet climate targets. Despite opposition, figures from the aviation industry remain sceptical about whether the plans will materialise.
Heathrow expansion ‘essential’ for growth
Ms Reeves defended the decision to push forward with the long-delayed expansion, stating that it was crucial for the country’s economic prospects.
“For international investors, persistent delays have cast doubt about our seriousness towards improving our economic prospects,” she said.
She also indicated a strong desire to move quickly on key projects:
“We want that to happen in this Parliament. I want spades in the ground, I want people to see in their areas things happening, growth happening,” she told BBC News.
Labour divisions over Heathrow expansion
London Mayor Sir Sadiq Khan reaffirmed his opposition to the third runway, citing environmental concerns, increased noise pollution, and the impact on local communities.
“I will, as the Mayor of this great city, use any tool in the toolkit to stop a third runway happening,” he told LBC’s Andrew Marr.
The previous Heathrow expansion plan involved a controversial tunnel under the M25 and the destruction of a local village.
When asked about opposition to the project, Ms Reeves stood firm, stressing that economic growth depends on a willingness to push through major developments.
“The problem is, if you always give in and say, ‘Oh, okay, there are some objections to this,’ we’ll end up in a situation where the economy continues to stagnate, living standards decline, and we’ll be no further forward than we are now,” she said.
Uncertain timeline for Heathrow expansion
While backing Heathrow’s expansion, Ms Reeves declined to provide a timeline for when the third runway could become operational. The Government has asked for fresh proposals by the summer, which will then undergo assessment against legal, environmental, and climate criteria.
Despite this, industry leaders remain unconvinced. Ryanair CEO Michael O’Leary dismissed Heathrow expansion as a “dead cat”, suggesting it would not materialise before the 2040s. He called for the scrapping of air passenger duty instead.
Willie Walsh, director general of the International Air Transport Association, also questioned the feasibility of sustainable aviation fuel, a key element of Heathrow’s green strategy.
“Sustainable fuel is a real thing, but we need it in significantly greater volumes than are available today,” he said.
Protests and wider economic plans
Ms Reeves’ speech was met with protests from environmental activists outside the venue in Oxfordshire. Farmers also staged demonstrations over recent changes to inheritance tax.
Beyond Heathrow, the Chancellor announced several major infrastructure plans, including:
- Oxford-Cambridge corridor: Positioning the region as “Europe’s Silicon Valley”, adding an estimated £78 billion to the economy by 2035.
- Reservoir construction: Nine new reservoirs, including projects near Abingdon and Cambridge, with £7.9 billion earmarked for improving water infrastructure.
- East-West rail link: Connecting Oxford and Cambridge, alongside upgrades to the A428.
- Cambridge cancer research hospital: Prioritised under the Government’s hospital development programme.
- Doncaster Sheffield Airport: Reopening as South Yorkshire Airport City.
- Electric vehicle infrastructure: £65 million investment through the National Wealth Fund.
- Trade negotiations: A push to restart free trade talks with India.
‘Barriers to growth must be removed’
Ms Reeves vowed to cut unnecessary regulations, particularly environmental rules that hinder construction. She highlighted an expensive bat tunnel built for HS2 as an example of wasteful spending.
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“We are reducing the environmental requirements placed on developers when they pay into a nature restoration fund that we have created, so they can focus on getting things built and stop worrying about the bats and the newts,” she said.
Her goal is to ensure that economic growth is felt across the UK before the next general election.
“We are systematically, one by one, removing the barriers that held back our growth performance for too long,” she said.
Political backlash
Despite her assurances, Shadow Chancellor Mel Stride criticised the speech, claiming Ms Reeves’ Budget was itself a barrier to growth.
“The biggest barriers to growth in this country are Rachel Reeves, Keir Starmer and their job-destroying budget, and nothing in the Chancellor’s speech proved otherwise,” he said.
With internal Labour divisions, opposition from environmental groups, and scepticism from industry leaders, the fate of Heathrow’s third runway remains uncertain. However, Ms Reeves’ firm stance suggests she is willing to fight to push it forward.
