Rachel Reeves has confirmed the Government will support building a third runway at Heathrow and airport expansion.In a speech in Oxfordshire on Wednesday, the Chancellor said economic growth "will not come without a fight", as she announced plans designed to kickstart Britain's floundering economy.
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00:00Finally, I come to the decision that perhaps more than any other has been delayed, has
00:06been avoided, has been ducked. The question of whether to give Heathrow our only hub airport
00:15a third runway has run on for decades. The last full-length runway in Britain was built
00:23in the 1940s. No progress in 80 years. Why is this so damaging? It's because Heathrow
00:33is at the heart of the UK's openness as a country. It connects us to emerging markets
00:40all over the world, opening up new opportunities for growth. Around three quarters of all long-haul
00:48flights in the UK go from Heathrow. Over 60% of UK air freight comes through Heathrow.
00:56And about 15 million business travellers used Heathrow in 2023. But for decades, its growth
01:05has been constrained. Successive studies have shown that this really matters for our economy.
01:12According to the most recent study from Frontier Economics, a third runway could increase potential
01:18GDP by 0.43% by 2050. Over half, 60% of that boost, would go to areas outside of London
01:29and the South East, increasing trade opportunities for products like Scotch whisky and Scottish
01:36salmon, already two of the biggest British exports out of Heathrow. And a third runway
01:42could create over 100,000 jobs. For international investors, persistent delays have cast doubt
01:50about our seriousness towards improving our economic prospects. Business groups like the
01:57CBI, the Federation of Small Businesses and the Chambers of Commerce right across the
02:02UK, as well as trade unions like GMB and Unite, are clear. A third runway is badly
02:10needed. In 2018, the previous government steered its
02:16airport's national policy statement through Parliament. But no action was taken. It simply
02:22sat on the shelf. We are taking a totally different approach
02:28to airport expansion. This government has already given its support to expansion at
02:33City Airport and at Stansted. And there are two live decisions on Luton and Gatwick which
02:39will be made by the Transport Secretary shortly. But as our only hub airport, Heathrow is in
02:46a unique position and we cannot duck the decision any longer. I have always been clear that
02:54a third runway at Heathrow would unlock further growth, boost investment, increase exports
03:01and make the UK more open and more connected. And now the case is stronger than ever. Because
03:10our reforms to the economy, like speeding up the planning system and our plans to modernise
03:15UK airspace, means the delivery of this project is now set up for success.
03:21So I can confirm today that this government supports a third runway at Heathrow and is
03:27inviting proposals to be brought forward by the summer. We will then take forward a full
03:33assessment through the airport national policy statement. This will ensure that the project
03:39is valued for money and our clear expectation is that any associated surface transport costs
03:45will be financed through private funding. And it will ensure that a third runway is
03:50delivered in line with our legal, environmental and climate objectives. Heathrow themselves
03:58are clear that their proposal for expansion will meet strict rules on noise, air quality
04:05and carbon emissions. And we are already making great strides in transitioning to cleaner
04:10and greener aviation.