Faarea Masud
Business reporter, BBC News
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Airports across the UK could be expanded, including the controversial third runway at Heathrow, under government growth plans.
The Treasury is looking at whether to support a third runway at Heathrow, approve a second runway at Gatwick, and increase capacity at Luton airport.
Chancellor Rachel Reeves said she is “not going to comment on leaks” when asked in the House of Commons about the expansion on Tuesday.
The new Labour government has made economic growth a key part of its messaging, with Reeves pledging to go “further and faster”.
Reeves could make an announcement on airports next week in a speech, the BBC understands.
When asked on Tuesday about whether she supports a proposed third runway at Heathrow, Reeves said: “What I would say is this government is absolutely committed to growing our economy and making this a great place for businesses to invest and trade in.”
Reeves will arrive in Davos later on Tuesday for the World Economic Forum, where she will say that the UK is “on the up” as she meets business leaders and investors from around the world.
A government spokesperson told the BBC it does “not comment on speculation” but that the government is “determined to get our economy moving and secure the long-term future of the UK’s aviation sector”.
They added: “All expansion proposals must demonstrate they contribute to economic growth, which is central to our Plan for Change, while remaining in line with existing environmental obligations.”
The push for growth has become more urgent after international markets cast doubt on the credibility of the UK’s economic plans, with UK borrowing costs soaring and the pound falling.
The boss of Heathrow Airport, Thomas Woldbye, said in December that his company needs a “clear steer” from the new government by the end of 2025 over plans to expand the airport and build a third runway.
Decision deadlines
The government is due to make a decision on Gatwick airport’s plans for expansion by 27 February.
Gatwick wants to increase its capacity to 75 million passengers per year, according to the previously published plans. Its previous record pre-covid was 47 million.
Gatwick is aiming to complete the project by the end of the decade if the plans go ahead.
Meanwhile, a decision on Luton airport’s expansion, which includes plans for a new terminal, is due by 3 April.
Airport expansions were delayed under the previous Conservative government because of their environmental impact and objections from airport-neighbouring communities over noise.
Heathrow’s expansion plans have been divisive for the Labour party in the past, with Prime Minister Keir Starmer voting against a third runway in 2018 while Reeves supported it.
If any airport expansions were to go ahead, they would prove “vital” to the UK’s business growth, said director general of the British Chambers of Commerce, Shevaun Haviland.
She added that all three projects would “help boost trade” at a time of increased costs for many businesses.
“These airport proposals must form a key part of the UK’s long-term infrastructure strategy to help businesses grow, trade and thrive,” she said.
