In her first major speech since the October Budget, the Chancellor Rachel Reeves confirmed this morning that the Labour Government supports expansion at Heathrow and is inviting proposals to be put forward by this summer.
“We are taking a totally different approach to airport expansion,” she said, pointing to expansion at London City and London Stansted and two live decisions on major developments at London Gatwick and London Luton.
“As our only hub airport, Heathrow is in a unique position and we cannot duck the decision any longer,” she said.
Heathrow CEO Thomas Woldbye said: “This is the bold, responsible vision the UK needs to thrive in the 21st century, and I thank the Government and Chancellor for their leadership. It has given us the confidence to confirm our continued support for expanding Heathrow.
“Successfully delivering the project at pace requires policy change – particularly around necessary airspace modernisation and making the regulatory model fit for purpose. We will now work with the Government on the expected planning reform and support Ministers to deliver the changes which will set us on track to securing planning permission before the end of this Parliament.”
In her speech this morning, Reeves said Heathrow has been clear that the expansion will meet strict rules on noise, air quality and carbon emissions.
She also laid out plans for a £63 million investment into an advanced fuels fund, alongside the SAF Mandate which came into force earlier this month.
Julia Lo Bue-Said, Chief Executive Officer of The Advantage Travel Partnership, said: “Having the necessary facilities available to maintain a thriving inbound and outbound travel industry is vital in order for the UK to remain a major international hub and to continue driving economic growth.”
Virgin Atlantic also recognised the vital role of Heathrow as a hub but said 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 a competitive UK aviation industry,” said a spokesperson.
Even with backing from the Government, the formal planning process is expected to take up to two years and then could be subject to a judicial review.
If approved, construction is expected to take another six or seven years.
