Chancellor confirms government's support for Heathrow third runway in speech on growth

In a significant address on economic growth, Chancellor Rachel Reeves has reaffirmed the government's support for the expansion of Heathrow with a third runway.

Speaking to an audience of journalists, business leaders, and cabinet ministers at Siemens Healthineers in Oxfordshire on Wednesday morning, she underscored Heathrow's crucial role in the UK’s global connectivity, as reported by City AM.

"Heathrow is at the heart of the UK’s openness as a country, it connects us to emerging markets all over the world, opening up new opportunities for growth," the chancellor commented.

She also emphasized the airport's distinctive status, remarking, "As our only hub airport Heathrow is in a unique position, and we cannot duck the decision any longer."

She then confirmed the government's stance: "So I can confirm today that this government supports a third runway, and is inviting proposals to be brought forward by the summer."

The ambitious infrastructure project, pegged to cost tens of billions and expected to surpass a decade in execution time, has been long-contested. Reeves acknowledged the drawn-out process and the environmentalists' opposition rooted in concerns over aviation's carbon footprint.

Nevertheless, the Chancellor was clear in her expectations: "our clear expectation is that any associated service transport costs will be financed through private funding" while asserting that the runway would be developed to comply with the nation's stringent environmental and climate commitments.

Shadow business secretary Andrew Griffiths expressed scepticism, stating "no one should be fooled" by Reeve’s speech. He added: "Future investment is welcome but businesses need action today on reversing Labour’s jobs tax, their red tape Employment Bill, high energy costs and the family business death tax."

When pressed by journalists, the Chancellor did not dismiss the possibility of further tax increases on businesses during