Chancellor Rachel Reeves has announced the government’s support for a third runway at Heathrow airport.
In a major speech on Wednesday (January 29) about government investment plans, she said the last full runway in Britain had been built in the 1940s and there had been “no progress in 80 years” – so a third runway was “badly needed”.
She said an expansion could create more than 100,000 jobs and increase trade opportunities.
“I can confirm today that this government supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer,” she said.
“We will then take forward a full assessment through the airport national policy statement.
“It will ensure that a third runway is delivered in line with our legal, environmental and climate objectives.”
The government said that research by Frontier Economics found that 60% of the economic boost from a third runway would be felt by areas outside of London and the southeast.
More: Industry reacts to government Heathrow third runway support
She told the BBC that the expansion of Heathrow is needed to help connect London to emerging economies, she said, as there is a lack of slots at the airport currently.
Aviation analytics firm Cirium said 2024 was Heathrow’s busiest ever year for flights, with more 480,000 scheduled departures and arrivals.
In 2024, Heathrow was the fourth busiest airport globally by the number of scheduled seats available and ninth by the number of scheduled flights.
But in Cirium’s ‘Most Connect Airport’ analysis of 2024, no UK airport made the top 10, with Heathrow coming in 12th position, with 221 destinations served, and Gatwick in 14th with 218 destinations (joint with Madrid).
Furthermore, Reeves said decisions on expansion at Gatwick and Luton airports will be made by transport secretary Heidi Alexander in the next few weeks.
She also pledged government support to develop Doncaster Sheffield airport which has been closed since November 2022.
“As Doncaster Sheffield airport was closed by its owner, despite the overwhelming support it to stay open, it now sits idle, despite the potential to drive jobs and growth across the north so I can announce today that we will work with Doncaster council and the mayor of South Yorkshire, Oliver Coppard, to support their efforts to recreate South Yorkshire airport city as a thriving regional airport,” she said.
Reeves also announced a partnership between logistics firm Prologis and Manchester Airport Group at East Midlands airport for the building of a manufacturing and logistics park, “unlocking up to £1 billion of investment and 2,000 jobs at the site”.