Delivering a speech at Siemens Healthineers in Oxfordshire yesterday (January 29, 2025), Reeves also outlined plans for growth that include imminent decisions on expansion at London Gatwick and Luton airports, support for the reopening of Doncaster Sheffield Airport, and a £63m investment into the Advanced Fuels Fund for development of SAF (Sustainable Aviation Fuel).
Furthermore, Reeves announced a new partnership between logistics company Prologis and East Midlands Airport to build a new advanced manufacturing park within the East Midlands Freeport zone 'unlocking £1bn of investment and 2,000 jobs at the site'.
In her speech, Reeves said: “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 as part of our Plan for Change.
“And now the case is stronger than ever because our reforms to the economy - like speeding up our planning system, and our strengthened plans to modernise UK airspace - mean the delivery of this project is set up for success.
“So I can confirm today that this government supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer.”
Theresa May’s government backed a third runway at Heathrow in 2018, which was successfully opposed in a judicial review by the Court of Appeal that ruled the runway unlawful because it did not account for climate commitments. Heathrow appealed the decision, and the Supreme Court overturned the decision.
In a caustic appraisal of Reeves’ announcement, Ryanair boss Michael O’Leary said the chancellor ‘hasn't a clue about how to deliver growth’.
“The third runway Heathrow, if they started shovels in the ground today, will not be here until about 2035 or 2040 at the earliest,” he told a Ryanair press conference. “She's come up with no dates for the third runway at Heathrow, it's just she's going to start getting submissions on the third runway later on this summer. The third runway Heathrow is a dead cat. If it ever arrives, it will be about 2040, 2045, or 2050.”
Giving the announcement a cautious welcome, IATA director general Willie Walsh said: “Heathrow cannot be allowed to gold-plate its construction costs, as it has done in the past. Regulators will need to be extremely firm on cost and efficiency matters, especially as environmental and economic barriers to expansion are also formidable. Unfortunately, past performance gives airlines little confidence in this area.
“Frankly, while this statement of intent is welcome, airlines would prefer to see more immediate measures to improve the UK’s aviation competitiveness, starting with cutting the APD tax and the ETA visa waiver charge, and stronger incentives for cheaper sustainable aviation fuels.”
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Chancellor backs third runway at Heathrow
The decision to develop LHR plus LGW and Luton will reinforce the need for travel to/from these locations from elsewhere in the country. Has any real...