“No Easy Routes” to Growth, Chancellor Reeves Warns Amid Heathrow Speculation
Chancellor Rachel Reeves has cautioned Labour MPs that there are “no easy routes” to achieving economic growth, as speculation mounts over potential government backing for a third runway at Heathrow Airport. Reeves emphasised the need for bold decisions to drive economic recovery, stating that ministers must “start saying yes” to new projects.
A Push for Growth
Addressing the Parliamentary Labour Party, Reeves reaffirmed her commitment to tackling low growth as the government’s “number one mission.” She urged MPs to adopt a proactive stance, saying, “Over the past six months as chancellor, my experience is that government has become used to saying ‘no.’ That must change. We must start saying ‘yes.’ Yes, to new jobs. Yes, to higher living standards. Yes, to investment. And yes, to growth.”
While she did not explicitly endorse Heathrow’s expansion in her speech, her remarks fuelled speculation that the government will announce support for the project in her forthcoming economic policy speech on Wednesday.
Divided Opinions
The possibility of expanding Heathrow has reignited long-standing divisions within the Labour Party. Ruth Cadbury, Labour MP for Brentford and Isleworth, whose constituency would be directly affected by a third runway, voiced concerns about the issue during the meeting, according to Reeves’ aides.
Environmental groups, local residents, and prominent Labour figures have also expressed opposition. London Mayor Sadiq Khan, re-elected in 2024 on a platform opposing airport expansion, has reiterated his stance, calling for strict noise and carbon emissions mitigations if the project proceeds.
Former shadow climate change secretary Barry Gardiner also criticised the idea, warning it could undermine progress toward net zero. “Decarbonisation is the growth of the future,” he said, adding that limiting the aviation sector is crucial to achieving climate targets.
Balancing Growth and Sustainability
Energy Secretary Ed Miliband, who has historically opposed Heathrow expansion, reassured MPs that any such projects must comply with the UK’s carbon budgets, which are legally binding. “Airport expansions will only be able to go ahead if they are consistent with our carbon commitments,” he told the Environmental Audit Committee on Monday.
Despite these concerns, the aviation industry and business leaders have consistently supported Heathrow expansion, arguing it would boost the UK’s economic competitiveness.
A Long Road Ahead
Proposals for a third runway at Heathrow date back to 2007, with Labour initially approving the plan in 2009 before it was scrapped by the coalition government in 2010. Subsequent attempts to revive the project have faced legal challenges, with the Supreme Court eventually overturning a 2020 Court of Appeal ruling that deemed the expansion unlawful due to climate concerns.
As of now, Heathrow has not submitted a new application, but its CEO has called for clear government direction by the end of 2025 to advance any plans.
Looking Ahead
Reeves’ anticipated speech on Wednesday is expected to outline the government’s broader strategy for driving growth, including recent plans to fast-track housing and commercial developments near train stations and reform planning regulations.
However, the question of whether Heathrow expansion will form part of the government’s growth agenda remains contentious, with Labour’s leadership walking a tightrope between economic ambitions and environmental commitments.
