‘We can go for growth and protect the environment’, Reeves insists as she hits back at Heathrow third runway critics

29 January 2025, 18:07 | Updated: 29 January 2025, 18:15

Rachel Reeves has insisted sustainability and economic growth go hand in hand as she defended her decision to back a third runway at Heathrow Airport.

Speaking to LBC’s Andrew Marr, the Chancellor said “the sun is out” for British business as she reaffirmed her mission to bring growth back to Britain.

It comes after Ms Reeves threw her support behind plans for a third runway at Heathrow Airport, despite concerns over its environmental impact.

In a speech in Oxfordshire on growth, the Chancellor said the west London airport's expansion is "badly needed" because "for decades its growth has been constrained".

Speaking to LBC on Wednesday, Ms Reeves hit out at critics of the plan as she said: “Sustainable aviation and economic growth go hand in hand.

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“There have been huge changes in the way people fly in the last few years, and just this year we've introduced the sustainable aviation fuel mandate, which will be increasing in the years ahead.

“£63 million today into producing sustainable aviation fuel, which will encourage and help create jobs here in Britain in places like Teesside.

“We've said to, Heathrow the we want the plans that they bring forward by the summer to meet, rules around carbon emissions, noise pollution and air quality will work with Heathrow to make sure that those plans come forward.”

She continued: “The answer to new infrastructure can't always be no. That's what happened under the last government.

“And nothing got built and nothing got done and living standards deteriorated. But so it does mean having to take on people who are against new developments, whether it is wind farms, airports or new rail lines.

“And the problem is, if you always give in and say, oh, okay, there's some objections to this, we'll end up with a situation where the economy continues to stagnate, living standards decline, and will be no further forward than we are now.”

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Ms Reeves also looked to dispel the doom and gloom surrounding the economy as she promised “the sun is out” for British businesses.

She told Andrew Marr: “I had to make difficult decisions when I became Chancellor.

“The public finances were in a total mess, and I had to put those back on a firm footing, and that meant difficult choices around spending, welfare and taxation, but we've now drawn a line under the economic and fiscal mismanagement of the previous government, which means we can now focus on the agenda of growth, and that is the number one mission of this government.

“My optimism for Britain burns brighter than ever.

“We've got a huge potential. You can see it here at this factory, at Siemens and so many other businesses around the country.

“I want to unlock that full potential, which is why we've announced a number of investments today.”

Heathrow's plan to build a third runway received parliamentary approval in June 2018, but has been delayed by legal challenges and the coronavirus pandemic.

The airport needs to secure approval for a Development Consent Order to go ahead with the project.

Chief executive Thomas Woldbye said he would not continue developing the scheme without the Government confirming it wants expansion.

The scheme would involve around seven years of construction to produce a third runway and a new terminal.

It would also require more than 700 houses to be demolished and the M25 motorway to be moved into a tunnel.

Environmental groups have expressed major concerns over the impact of airport expansion on climate change.

Speaking earlier on Wednesday, Reeves added that "by backing a third runway at Heathrow we can make Britain the world's best connected place to do business".

"That is what it takes to make decisions in the national interest and that is what I mean by going further and faster to kickstart economic growth," she added.

Later, responding to questions from journalists, Ms Reeves said projects such as backing the third runway "shows that this is a Government with ambition that is getting on and delivering".

She said: "One of the reasons why we need to expand Heathrow is that there are emerging markets and new cities around the world that we aren't connected to because there aren't the slots at Heathrow - or indeed any other airport - to fly to."

Mayor of London Sadiq Khan said he remains "opposed" to Heathrow expansion because of its "severe impact". He said: "I remain opposed to a new runway at Heathrow airport because of the severe impact it will have on noise, air pollution and meeting our climate change targets.

"I will scrutinise carefully any new proposals that now come forward from Heathrow, including the impact it will have on people living in the area and the huge knock-on effects for our transport infrastructure.

"Despite the progress that's been made in the aviation sector to make it more sustainable, I'm simply not convinced that you can have hundreds of thousands of additional flights at Heathrow every year without a hugely damaging impact on our environment."