The º£½ÇÊÓƵ government is reportedly gearing up to approve expansion plans at three major London airports. Chancellor Rachel Reeves is expected to announce her support for additional runways at Heathrow and Gatwick, as well as a proposal by London Luton to significantly increase passenger capacity, in an upcoming speech, Bloomberg reports.
However, the content of Reeves' speech is not yet finalised and may still be subject to change. The Financial Times also reported that ministers are prepared to greenlight Gatwick's £2.2bn plans for a second runway, as reported by .
This comes as the government seeks to stimulate economic growth through a series of significant planning and infrastructure decisions. "We are determined to get our economy moving and secure the long-term future of the º£½ÇÊÓƵ’s aviation sector," the government stated.
"All expansion proposals must demonstrate they contribute to economic growth" while adhering to environmental obligations. Approving all three airport expansions could prove controversial given the country's net-zero targets.
Heathrow’s long-delayed plans for a third runway are particularly contentious due to the size of the º£½ÇÊÓƵ’s busiest hub. Such a decision is likely to face opposition from London Mayor Sadiq Khan, who has previously expressed strong disapproval of airport expansion.
Energy secretary Ed Miliband is also firmly against Heathrow’s expansion bid.
A representative for Khan told City AM: "The Mayor has a long-standing opposition to airport expansion around London – linked to the negative impact on air quality, noise and London’s ability to reach net-zero by 2030."
However, investor concerns over stagflation and last week’s bond market volatility are increasing pressure on Reeves. .
According to official data, the º£½ÇÊÓƵ economy grew by 0.1 per cent in November, following 0.1 per cent contractions in both October and September.
Former Prime Minister Theresa May projected that the Heathrow project could inject £61bn into the º£½ÇÊÓƵ economy over 14 years and generate approximately 77,000 jobs. Gatwick has contended that its expansion would contribute £1bn to the local region and create some 14,000 jobs.
Transport secretary Heidi Alexander will make a decision on Gatwick’s runway by February 27, while a decision on Luton Airport, which has already been delayed three times, will not be made until April.
Due to political uncertainty, Heathrow has yet to submit a Development Consent Order (DCO) for its project.
Bloomberg reported that the £9bn Lower Thames Crossing, a major road tunnel to the east of London known for the staggering size of its planning application, is also set for approval.
Since the summer election, the government has already supported both Stansted and London City’s expansion proposals, overturning a local council’s ruling in the latter case.
