Chancellor backs third runway for Heathrow

Chancellor of the Exchequer Rachel Reeves, in a wide-ranging speech aimed at boosting the UK economy said the government backs the development of a third runway at London/Heathrow Airport. In the January 29, 2025 speech, Reeves stated: “I can confirm today that this government supports a third runway at Heathrow. I have always been clear that a third runway would unlock further growth, boost investment, increase exports, and make the UK more open and more connected.” Reeves said the UK Government is inviting proposals to be brought forward by the summer. “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 obligations. Heathrow are clear that their proposal for expansion will meet strict rules on noise, air quality and carbon emissions.”

Heathrow third runway artwork — **Artist’s impression of how an expanded London/Heathrow with a third runway could look.** Heathrow Airports Ltd

In her speech, Reeves said three-quarters of all long-haul flights from the UK depart from Heathrow, and that the airport handles more than 60% of the UK’s air freight. Building a third runway could create more than 100,000 jobs, she added. According to UK Civil Aviation Authority airport statistics, Heathrow handled 83.4 million passengers in 2024 (up to the end of November; a final figure for the full year was unavailable at the time of writing). Reeves added: “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.” Along with backing a further runway at Heathrow, Reeves said: “This government has already given its support to expansion at [London] City Airport and at Stansted. And there are two live decisions on Luton and Gatwick which will be made by the Transport Secretary shortly.” She also said in her speech the government supports the re-opening of Doncaster Sheffield Airport: “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 went onto say: “I am pleased to announce a partnership between Prologis and Manchester Airport Group [MAG] in the East Midlands…Prologis and MAG will work together to build a new advanced manufacturing and logistics park at East Midlands Airport unlocking up to £1 billion of investment and 2,000 jobs at the site.” The Chancellor, as part of the government’s efforts to transition to greener aviation, said more support will be given to the Sustainable Aviation Fuel industry as compared to fossil jet fuel the former reduces CO2 emissions around 70%. The government is investing £63 million in UK producers in 2025-26 into the Advanced Fuels Fund and setting out details of a Revenue Certainty Mechanism. The governments states that this will support investment and high-skilled green jobs in plants across the UK – with previous winners of the Fund ranging from across the north of England to South Wales – and follows the Sustainable Aviation Fuel Mandate coming into law at the start of 2025. Heathrow's proposed third runway In a statement, Heathrow chief executive officer Thomas Woldbye welcomed the Chancellor’s declaration as “recognition of the critical role we play for the economy and in delivering growth across the UK”. Woldbye added: “A third runway and the infrastructure that comes with it would unlock billions of pounds of private money to stimulate the UK supply chain during construction. Once built, it would create jobs and drive trade, tourism and inward investment to every part of the country. It would also give airlines and passengers the competitive, resilient hub airport they expect…With strict environmental safeguards, it would demonstrate that by growing our economy responsibly we can ensure our commitments to future generations are delivered.” Woldbye also stated: “policy change – particularly around necessary airspace modernisation and making the regulatory model fit for purpose [is required]. We will now work with the government on the expected planning reform and support ministers to deliver the changes which will set us on track to securing planning permission before the end of this Parliament.” Rob Bishton, the UK Civil Aviation Authority chief executive, commented: “Expanding the sector will give passengers more choice and build resilience as well as contributing to the UK’s productivity. In doing so, it will be important for the sector to remain safe and grow in a responsible way. In undertaking this regulatory role, we will work with government and the aviation sector.” However, there are plenty of dissenting voices against the expansion including Sadiq Khan, the Mayor of London who said: “I remain opposed to a new runway at Heathrow Airport because of the severe impact it will have on noise, air pollution and meeting our climate change targets. “I will scrutinise carefully any new proposals that now come forward from Heathrow, including the impact it will have on people living in the area and the huge knock-on effects for our transport infrastructure. “Despite the progress that's been made in the aviation sector to make it more sustainable, I’m simply not convinced that you can have hundreds of thousands of additional flights at Heathrow every year without a hugely damaging impact on our environment.”

British Airways Boeing 777 at Heathrow at sunset — **Three-quarters of all long-haul flights from the UK depart from Heathrow, said UK Chancellor of the Exchequer Rachel Reeves in her speech**. Heathrow Airports Ltd

Heathrow expansion saga Chancellor Reeves’ statement opened another chapter in a long-running story. UK Government White Papers in 1990 and 2003 each identified a requirement for a third Heathrow runway. In 2015, the Airports Commission recommended a proposal for a new northwest runway and terminal on the northern side of the airport, with the M25 motorway running beneath the new runway in a tunnel. The House of Commons debated this proposal in June 2018 and voted 415–119 in favour, but a February 2020 UK Court of Appeal judicial review ruled it unlawful in light of the UK Government’s climate-change commitments under the Paris Agreement. Heathrow successfully appealed this decision at the UK Supreme Court on December 16, 2020. During her speech, Reeves said: “As our only hub airport, Heathrow is in a unique position – and we cannot duck the decision [on expansion] any longer.”