The government supports a third runway at Heathrow, Chancellor Rachel Reeves has announced.
Ms Reeves said the expansion of Europe’s busiest airport was “badly needed” to connect the UK to the world and open up new opportunities for growth.
A third runway will “unlock further growth, boost investment increase exports and make the UK more open and more connected”, she said.
Politics latest: Reaction to third runway decision
It could increase potential GDP (Gross Domestic Product) by 0.43% by 2050 according to a Frontier Economics study, she said. 60% of that boost would go to areas outside London and the southeast, increasing trade opportunities like Scotch whiskey and Scottish salmon, she added.
Ms Reeves said an expansion could create more than 100,000 jobs.
The announcement has been welcomed by some business groups but has been met with anger from London’s Labour mayor Sadiq Khan, the Lib Dems, the Green Party and environmental groups.
Conservative leader Kemi Badenoch told Sky News over the weekend she supports a third runway.
As part of a speech on funding infrastructure across the UK to promote growth, Ms Reeves said: “Persistent delays have caused doubts about our seriousness towards improving our economic prospects.”
She added that business groups like the Confederation of British Industry (CBI), the Federation of Small Businesses (FSB) and the Chambers of Commerce (BCC), as well as trade unions “are clear – a third runway is badly needed”.
Investments in green aviation fuel
Ms Reeves said the UK is “already making great strides in transitioning to cleaner and greener aviation” and announced the government is investing £63m over the next year into the Advanced Fuel Fund grant programme to support the development of sustainable aviation fuel production plants.
The government will be accepting proposals until the summer…
