Rachel Reeves is poised to back a third runway at Heathrow in a bid to revive Britain’s flatlining economy.
The chancellor is preparing a sweeping expansion of UK airports as part of its number one mission to secure sustained economic growth.
As well as publicly endorsing Heathrow’s much-postponed plan to build a third runway, the government is reportedly set to approve a second runway at Gatwick and an application for Luton airport to double its capacity.
Last month, Gatwick boss Stewart Wingate told The Independent he was pleading for permission from transport secretary Heidi Alexander to bring his airport’s standby runway into permanent use.
He warned: “London’s airports are already reaching capacity and demand is forecast to grow by more than 30 million passengers by 2030. We are already full at peak times.”
And he joined long-standing calls from a series of Heathrow bosses including incumbent Thomas Woldbye, who has said the plan for a third runway at Britain’s busiest airport is contingent on government support.
Both bosses have warned that by not approving the plans, the government is missing out on an opportunity to boost growth. Amid growing fears about the state of Britain’s economy, with Ms Reeves expected to push through deep cuts when it publishes its upcoming spending review, she has ordered ministers to come up with ideas to boost growth.
And last week Ms Reeves said the rising cost of borrowing and falling value of the pound only underlined the need to go “further and faster” in search of economic growth.
She could announce the decisions supporting airport expansions in a speech about growth as early as this month, Bloomberg reported.
The major airport expansions would set Ms Reeves on a collision course with climate campaigners, who have consistently rallied against a third runway being built at Heathrow.
It could also set up a cabinet clash with environment secretary Ed Miliband, who opposed Heathrow’s expansion during his time as Labour leader.
A government spokesman refused to comment on speculation, but added: “We are determined to get our economy moving and secure the long-term future of the UK’s aviation sector.
“All expansion proposals must demonstrate they contribute to economic growth, while remaining in line with existing environmental obligations.”
Heathrow boss Mr Woldbye has told The Independent that plans for a third runway are being revived, but has also warned that they will not submit proposals unless the government is fully onboard.
Speaking at the Airlines 2024 conference, he said: “We need to get around the table and say, do we want this? And we need to do that relatively fast because we cannot keep spending money.
“That requires discussion. It’s not just Heathrow, it’s the airlines, it’s the Government, it’s Parliament, it’s everybody around this.
“We can’t do that just as a single company. We are the tactical executors on the plan but transportation strategy is a government issue.”
Plans to allow Gatwick to use its second runway for departures are also expected to be approved, which would double passenger numbers to around 80m a year. And Labour is also set to accept the expansion of Luton airport’s capacity from 18m a year to 32m a year.
This article was written by Archie Mitchell from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.