London Gatwick expansion: Chancellor Rachel Reeves backs third runway at Heathrow, but only makes passing reference to Gatwick in growth speech

It was reported that the Chancellor was expected to give the go ahead to expansion plans at London Gatwick, a third runway at Heathrow and increased capacity at Luton Airport in her speech in Oxfordshire.

But her speech only focussed mainly on Heathrow.

The Chancellor said: “Heathrow is at the heart of the openness of the UK as a country, it connects us to emerging markets all over the world, opening up new opportunities for growth. Around three quarters of all long haul flights from the UK go from Heathrow, over 60% of UK air fright comes through Heathrow and around 15 million business travellers used Heathrow in 2023.

“But for decades, its growth has been constrained.”

She continued: “A third runway could create more than 100,000 jobs. For international investors, persistent delays have cast doubts about our seriousness about improving our economic prospects.”

Ms Reeves said a new runway would increase GDP and increase trading opportunities for products such as Scottish salmon and whiskey.

She added the Labour government was 'taking a totally different approach' to the last government on airport expansion and that approval had already been given to plans on City and Stanstead airports.

And she added: “There are two live decisions to be made on Luton and at Gatwick which will be made by the Transport secretary shortly.

“But as our only hub airport, Heathrow is in a unique position and we cannot duck the decision any longer. I have always been clear that ab third runway at Heathrow will improve growth, unlock investment, ibncrease exports and make the UK more connected and now the case is stronger than ever.”

In her speech, the Chancellor says she is determined to deliver 'a whole new approach' to growth and will focus on supporting the supply side of the UK economy and she said her strategy has three parts - stability, reform and investment. Ms Reeves said it was her 'duty as Chancellor to fix the foundations of the economy' at the Budget in October.

And the Chancellor announced developers can 'stop worrying about the bats and the newts' as she revealed they would be able to bypass environmental regulations by paying into a nature fund launched by the government.

She said they would 'work tirelessly' to ensure a new developers bill to be introduced to Parliament in the spring is delivered 'smoothly'.

Ms Reeves also announced plans to create a South Yorkshire airport hub following the closure of Doncaster airport.

Meanwhile, the Government is due to make a decision on Gatwick’s expansion by February 27.

Gatwick’s £2.2 billion privately-financed project, which was first muted seven years ago, is expected to create around 14,000 new jobs and inject £1 billion into the region's economy every year.

The plan will see the current Northern Runway moved by 12 metres and brought into more routine use.

If approved, the plan would be one of the largest capital investment projects in the region in decades. And it would help the airport meet future passenger demand by serving around 75 million passengers a year by the late 2030s.

Campaign group CAGNE said they will legally challenge a decision to allow two runway operations at Gatwick ‘as there were so many flaws in the evidence provided by Gatwick at the DCO hearings, this news story, if factual, is just another reason to challenge a new runway decision’.

Reacting to the chancellor's speech on growth this morning, which outlined plans to back aviation expansion and reduce nature protections, Rosie Downes, head of campaigns at Friends of the Earth, said:

"Rachel Reeves' 'growth trumps all' approach is the kind of dangerously short-sighted thinking that has helped cause the climate crisis and left the UK one of the most nature-depleted countries in the world."

"Giving the go-ahead to airport expansion by depending on new, unreliable technologies, like 'sustainable aviation fuels’ would be a reckless gamble with our future and risks the UK missing critical climate reduction targets even if we rapidly expand renewable energy.

Last week, Gatwick CEO Stewart Wingate said: “At London Gatwick, we can be a major part of the Government’s drive for growth. We are already contributing over £5.5billion to the UK economy and supporting over 76,000 jobs, but unless we can access greater airport capacity the UK will miss out on opportunities to enhance global connectivity and unlock further opportunities for trade, tourism and job creation.

"Bringing our Northern Runway into routine use, through a £2.2 billion privately financed, shovel-ready investment will create 14,000 jobs and generate £1 billion a year in economic benefits. The project, which is due for government approval early next year, could be operational by the end of the decade.

"We have put forward a strong and compelling case focused around making best use of our existing infrastructure, minimising noise and environmental impacts and meeting the four ‘tests’ for airport expansion set by Labour."

Roger Mortlock, CPRE chief executive, said: "The single biggest threat to the countryside is climate change. If the government expands Heathrow, Luton, City and Gatwick airports, the increase in carbon emissions will make a mockery of its commitment to reaching net zero by 2030.

“Airport expansion will do nothing to boost UK growth. There has been no net increase in air travel for business purposes or in jobs in air transport since 2007. Recent research from the New Economic Foundation indicates that airport expansion will drive significant tourism revenue abroad, not bring it to the UK. To create the jobs of the future we need investment in low-carbon industries and transport, not more unsustainable expansion of the UK’s airports.

“CPRE local groups in Bedfordshire, Hertfordshire, London and Sussex have been at the forefront of campaigns to prevent further airport expansion. If implemented, these proposals would have a devastating impact on some of the UK’s most valuable agricultural land, vital wildlife habitats and green spaces close to millions of people’s homes.”