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Iain Dale 10am - 12pm
29 January 2025, 10:51 | Updated: 29 January 2025, 12:55
Rachel Reeves has given her support for a third runway at Heathrow Airport.
In a speech in Oxfordshire on growth, the Chancellor said the west London airport's expansion is "badly needed" because "for decades its growth has been constrained".
Heathrow's plan to build a third runway received parliamentary approval in June 2018, but has been delayed by legal challenges and the coronavirus pandemic.
The airport needs to secure approval for a Development Consent Order to go ahead with the project.
Chief executive Thomas Woldbye said he would not continue developing the scheme without the Government confirming it wants expansion.
The scheme would involve around seven years of construction to produce a third runway and a new terminal.
It would also require more than 700 houses to be demolished and the M25 motorway to be moved into a tunnel.
Environmental groups have expressed major concerns over the impact of airport expansion on climate change.
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Reeves added that "by backing a third runway at Heathrow we can make Britain the world's best connected place to do business".
"That is what it takes to make decisions in the national interest and that is what I mean by going further and faster to kickstart economic growth," she added.
Later, responding to questions from journalists, Ms Reeves said projects such as backing the third runway "shows that this is a Government with ambition that is getting on and delivering".
She added: "One of the reasons why we need to expand Heathrow is that there are emerging markets and new cities around the world that we aren't connected to because there aren't the slots at Heathrow - or indeed any other airport - to fly to."
— Sadiq Khan (@SadiqKhan) January 29, 2025
Mayor of London Sadiq Khan said he remains "opposed" to Heathrow expansion because of its "severe impact". He 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."
Caller David backs Heathrow runway expansion
Leader of the Opposition Kemi Badenoch has accused Sir Keir Starmer of misleading the House and being "anti-growth" at Prime Minister's Questions.
In response, the Prime Minister said the Conservative leader's only policy was to "shrink pensions".
She told MPs: "(Sir Keir) doesn't want to talk about the Employment Bill because he doesn't know about it. Last week, he misled the House."
Commons speaker Lindsay Hoyle said: "We can't accuse the Prime Minister of misleading the House. No, we can't do it."
Mrs Badenoch continued: "Last week, he claimed to have laid down an amendment that he had not made. He doesn't know what is going on in here or out there."
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She later said the Chancellor has "embraced a series of Conservative policies" as she called on the Prime Minister to withdraw the Employment Rights Bill.
She told MPs: "Yesterday, the Prime Minister set his growth test. He said, 'if a policy is good for growth, the answer is yes. If it's not, the answer is no'.
"When Conservatives left office, we had the fastest economic growth in the G7. But what is the Government doing for growth now? It's destroying it. Let's look at the Employment Bill. The Government's own figures say it will cost businesses £5 billion a year. It clearly fails the Prime Minister's growth test. Will he drop it?"
Sir Keir Starmer replied: "I think the proposition they left a golden inheritance was tested on the fourth of July."
He added: "She asked what we're doing, the ONS say we got the highest investment for 19 years. PwC, second best place to invest in the world. IMF, upgrading growth predicted, fastest growing major economy in Europe. Wages up, inflation down.
"There's more to do with reforming planning and regulation, building the new homes that we need, supporting a third runway at Heathrow, and as she admitted to the CBI in November, 'there's no point in me just complaining about Labour', she said, 'it's obvious that we Conservatives lost the confidence of business'. We're not taking lectures from them."
A Virgin Atlantic spokesperson said: "Heathrow is critical national infrastructure and the UK's only hub airport, enabling connectivity and trade to global markets, yet it remains the world's most expensive airport with a service that falls short.
"We are supportive of growth and expansion at Heathrow, if, and only if, there is fundamental reform to the flawed regulatory model to ensure value for money for consumers, affordability for UK plc and support for a competitive UK aviation industry."
GMB regional organiser Perry Phillips said: "The Heathrow third runway expansion has finally been cleared for take-off.
"We welcome the Government's decision and the thousands of good, unionised jobs and apprenticeships the project will create.
"The project represents a huge boost for construction skills in this country, which will be vital for future infrastructure projects."