UK Chancellor Rachel Reeves has suggested she might support an expansion project at Heathrow Airport, while refraining from directly commenting on what she described as “speculation" on the subject.
Speaking to Bloomberg at the World Economic Forum in Davos, Reeves highlighted the government’s recent backing of expansion plans at other London airports, as an example of the government's commitment to infrastructure development.
“The answer can't always be 'no' when it comes to economic growth,” Reeves said, adding that Britain's long-standing tendency to prioritise other considerations over growth has hindered progress. The news outlet also reported that Reeves stated the importance of making bold decisions to stimulate the economy.
Reeves’ comments come as the government balances environmental and economic considerations, with Heathrow expansion plans long viewed as a contentious and controversial issue in the UK.
In 2020 Heathrow won a Supreme Court challenge to build a third runway, this gave the airport the ability to seek planning permission for this, but the UK government still has the final say on whether the project can go ahead.
These comments from the chancellor come after UK government ministers prepare to greenlight an expansion of London Gatwick airport, as part of a broader government push to nurture economic growth, as reported by the Financial Times on January 21, 2025.
Valued at £2.2 billion ($2.7 billion), the project will enable Gatwick to handle up to 75 million passengers annually by the late 2030s, a significant increase from the record 46.5 million passengers in 2019 at the single-runway airport.
Labour has said it will allow Heathrow’s expansion if it passes four “tests” set by ministers relating to climate change, noise, air pollution, and economic growth, the FT reported.
Heathrow currently operates at near full capacity using two runways, handling in the region of 480,000 aircraft movements per year. A third runway would potentially enable the airport to cater an additional 260,000 movements annually.
Reeves is expected to announce her plans on airport expansions next week.