Government Backs Heathrow Expansion
The UK government is taking bold steps to stimulate economic growth, with Chancellor Rachel Reeves announcing plans that include major infrastructure projects and regulatory reforms. In a speech delivered to business leaders, Reeves confirmed the government's support for a third runway at Heathrow Airport, a move that has been delayed for years due to environmental concerns.
"I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change," Reeves said. The government aims to review the Airports National Policy Statement (ANPS) rapidly to ensure the project complies with environmental and legal obligations.
Alongside the expansion of Heathrow, Reeves backed expansions at Gatwick and Luton airports, while also supporting plans to rejuvenate Doncaster Sheffield Airport. The government is committed to addressing connectivity issues by improving airports outside London and the South East, potentially benefiting regions across the UK. Research by Frontier Economics suggests that 60% of the economic boost from Heathrow's expansion will reach areas outside of the capital, bringing lower fares, greater travel options, and more economic opportunities to working people nationwide.
The Chancellor also announced a new partnership aimed at boosting advanced manufacturing at East Midlands Airport, which will unlock £1 billion in investment and create 2,000 jobs. The government is also working with regional leaders to support key projects, including a £65 million investment in electric vehicle charging infrastructure and a £28 million initiative to supply materials for green energy production.
Reeves emphasized the government's commitment to making the UK a "clean energy superpower," unveiling plans to unblock barriers to offshore wind and designate new Marine Protected Areas to support this goal. By unlocking up to £30 billion in private investment, the government hopes to create thousands of jobs in the clean energy sector.
The government's broader economic strategy includes revitalizing the Oxford-Cambridge Growth Corridor, which could become Europe’s answer to Silicon Valley. Reeves believes that focusing on innovation, particularly in life sciences and tech, will drive significant economic growth.
Other major projects, such as the regeneration of Old Trafford and better transport links between Oxford and Cambridge, aim to bring an estimated £78 billion to the UK economy by 2035. While the projects may take years to complete, Reeves emphasized that they mark the beginning of a longer-term plan to invigorate the economy.
Reeves also addressed concerns over her policies, hitting back at critics who blamed her for the slow growth of the UK economy. "Low growth is not our destiny," she said. "But growth will not come without a fight, without a government willing to take the right decisions now to change our country's future for the better."
As part of the government's push to streamline development, the Planning and Infrastructure Bill will be introduced in the spring. This bill will aim to cut down the long approval times for major infrastructure projects, with the goal of reducing the red tape that has historically slowed economic development.
Reeves’s plan includes major investments in transportation, clean energy, and high-tech industries, alongside a commitment to transforming the UK’s infrastructure. While it is clear that many of these initiatives will take time to bear fruit, the Chancellor is determined to send a message that the government is serious about growth and the future of the UK economy.
References:
Frontier Economics. (2025) Heathrow Expansion Benefits: Executive Summary, Available at: https://www.frontier-economics.com/media/ak3mt11i/heathrow-net-benefits-summary-29-01-2025-stc.pdf (Accessed: 29 January 2025).
HM Treasury, Alexander, H. and Reeves, R. (2025) Government backs Heathrow expansion to kickstart economic growth, Available at: https://www.gov.uk/government/news/government-backs-heathrow-expansion-to-kickstart-economic-growth (Accessed: 29 January 2025).
