Chancellor Commits to Heathrow Expansion

Rachel Reeves backs third runway as part of Labour’s growth plan

If approved it would be at least ten years before the third runway is operational

February 3, 2025

The Chancellor of the Exchequer, Rachel Reeves, has confirmed her backing for a third runway at Heathrow Airport as part of a broader plan to boost growth in the UK.

It a move that had been widely rumoured in previous weeks she endorsed existing plans for expansion while acknowledging that the project will ‘not come without a fight’.

Assuming Cabinet approval for the policy, the way will be clear for Heathrow to start the planning application process, with Labour also promising reduced delays through the system. Writing in the Times this Wednesday (29 January), PM Sir Keir Starmer says wider government plans would "kick down the barriers to building" and "clear out the regulatory weeds".

However, government support does not necessarily mean that planning approval will be granted.

The government is insisting that no public money will be required for the expansion of Heathrow which will cost tens of billions of pounds and is not likely to be finished within a decade. Approval is also set to be given for expansion plans at Gatwick and Luton which will start sooner.

The Chancellor’s speech was released beforehand to the media. In it she says “For too long, that potential has been held back. Low growth is not our destiny. But growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country's course for the better."

There is not unanimous support within the cabinet or the wider Labour party for the decision. Ed Miliband, the Energy and Net Zero Secretary recently told Parliament’s Environmental Audit Committee that “any aviation expansion must be justified within carbon budget and if it cannot be justified then it will not take place”.

Brentford and Isleworth MP Ruth Cadbury said, “We know that expansion at Heathrow would mean more noise, congestion, and pollution for communities across West London, especially for those areas of north Brentford, Osterley and Heston that would be under a new approach path.

“I am glad that so many of my constituents work at and depend on the airport. This will not change. Heathrow will continue to be the UK’s most important international airport, whether they build a third runway or not.

“The Labour Government had previously said that expansion at Heathrow would only be approved if it fulfilled four tests; delivering economic growth across the whole of the UK, ensuring the UK’s climate change obligations are met, and addressing local noise and air quality issues.

“While I welcome the Chancellor’s drive for growth, I do not see how expansion at Heathrow can satisfy the four tests our party set out.”

Sir Sadiq Khan, the Mayor of London told the BBC he has "a long-standing opposition to airport expansion around London" because of the impact on air quality and noise.

Although the Conservative party at a national level appear to be backing airport expansion Hounslow Council’s Conservative Group has reiterated its longstanding opposition citing the negative impact on air quality and noise pollution.

“As a local councillor and former Council leader, I have consistently opposed the expansion of Heathrow and campaigned for a 'better not bigger' Heathrow,” said Cllr Peter Thompson. “A third runway will increase traffic congestion, put immense pressure on our road networks, and bring harmful aircraft noise to our part of London. Moreover, it will undermine our ability to meet essential environmental targets. The government’s decision today is a serious mistake that shreds its green credibility

“The proposed expansion of Heathrow Airport remains years away as it faces a lengthy planning and legal process. A Development Consent Order, required for approval, could take up to two years, followed by potential judicial reviews that may add another 18 months of delays. Even under the most favourable conditions, construction is unlikely to begin for at least three years, with an estimated six-to-seven-year build timeline. This means the third runway is unlikely to be operational before 2035.”

Zack, Green Party Member of the London Assembly, commented, “The Government have essentially said 'fly, baby, fly' to the developers and frequent flyers who don’t give a fig about the climate emergency let alone the increased pollution and overflown Londoners blighted by noise.

“The world is literally on fire, we’ve just seen yet another killer storm sweep across Britain, and yet this Government are putting climate-wrecking expansion and private profits ahead of the welfare of the people.

“The real question is who is this massive expansion for and at what cost? It’s not for Londoners taking the odd holiday, or visiting friends and family and it’s certainly not for the thousands of Londoners whose homes will be demolished if this goes ahead.

The No 3rd Runway Coalition says Heathrow Airport's proposed third runway fails Labour's four tests for infrastructure projects. It says the Updated Appraisal Report accompanying the Airports National Policy Statement (ANPS) indicates a Net Present Value (NPV) ranging from £3.3 billion to minus £2.2 billion, suggesting limited or negative economic benefits. It points to research by the New Economics Foundation (NEF) reveals that 75% of the additional capacity would serve international transfer passengers, who do not significantly contribute to the UK economy and excluding these passengers could reduce the NPV by £5.5 billion.

In addition, the group says that the carbon abatement cost of the expansion has doubled to £100 billion, further diminishing economic advantages and the document does not provide specific details on noise mitigation strategies or assessments related to the expansion. While air quality concerns are implied, the document does not elaborate on specific impacts or mitigation measures but Heathrow is the UK's largest single source of carbon emissions; expansion would add 8-9 megatonnes of CO₂ annually. The Climate Change Committee's balanced pathway to Net Zero anticipates aviation emitting 23 megatonnes of CO₂ by 2050; a third runway could increase Heathrow's emissions to 20 megatonnes, necessitating reductions elsewhere

Paul McGuinness, Chair of the No 3rd Runway Coalition, said, “If, as expected, both Gatwick and Luton are given the go ahead for expansion, capacity in the South East will have been increased by 60 million passengers a year, which is more than Heathrow’s expansion would have been able to provide.

“Even if Heathrow were to submit an application for their own expansion, the Energy Secretary has flagged up our legally binding carbon commitments and the strong possibility that there won’t be any room in left the carbon budget for their infrastructure to be used, if ever built.”

In the same speech, Ms Reeves outlined a plan to create ‘Europe’s Silicon Valley between Oxford and Cambridge, reaffirming support for a stalled project to build a railway between the two university cities. There could be 4,500 new homes built around Cambridge as well as a number of new reservoirs. As well as confirming funding for East-West Rail, the government is backing the redevelopment of Old Trafford, the area surrounding the football stadium of Manchester United.