Chancellor backs Heathrow third runway as she lays out plans for growth
Rachel Reeves struck a more positive note on the economy as she announced a slew of infrastructure projects.
The Government will back a third runway at Heathrow Airport as it looks to go “further and faster” on growth, the Chancellor has announced.
In a wide-ranging speech on her measures to boost Britain’s flagging economy, Rachel Reeves said the case for a third runway was “stronger than ever”.
She said: “We cannot duck the decision any longer. I have always been clear that a third runway at Heathrow would unlock growth, boost investment, increase exports and make the UK more open and more connected.”
But the announcement will prove controversial, with green campaigners such as Labour donor Dale Vince arguing that the third runway would undermine the UK’s climate change commitments while providing “the illusion of growth”.
In her speech in Oxfordshire on Wednesday, Ms Reeves insisted that the Government would “ensure that a third runway is delivered in line with our legal, environmental and climate objectives”.
The Government has asked for proposals on the third runway to be brought forward by the summer, after which the plan will face further hurdles before work can begin.
The Heathrow announcement capped a speech in which the Chancellor sought to strike a more optimistic note than at the start of her term, saying the Government had “begun to turn things around” and announcing a slew of other infrastructure projects.
She said: “We have fundamental strengths in our history, in our language and in our legal system to compete in a global economy, but for too long that potential has been held back. For too long we have accepted low expectations and accepted decline.
“We no longer have to do that. We can do so much better.
“Low growth is not our destiny, but growth will not come without a fight, without a Government willing to take the right decisions now to change our country’s future for the better.”
Along with the third runway, the Chancellor announced the Government’s backing for housing, transport and other investment in the Oxford-Cambridge corridor, which she said could become “Europe’s Silicon Valley” and add £78 billion to the UK’s economy by 2035.
She also declared Government support for the redevelopment of the area around Manchester United’s Old Trafford stadium and said she would work with the private sector to fund the long-planned Lower Thames Crossing.
Other key points from Ms Reeves’ speech included:
– New reservoirs will be built near Abingdon in Oxfordshire and in the Fens near Cambridge. They will be among nine new reservoirs built as the Government has agreed for water companies to invest £7.9 billion to improve infrastructure.
– Funding for the East-West rail link joining Oxford, Cambridge and towns like Bedford and Milton Keynes that sit between them will be confirmed, as well as upgrades to the A428 road.
– A new Cambridge cancer research hospital will be prioritised as part of the new hospitals programme.
– Oxford will get a growth commission, similar to one set up in Cambridge, aimed at helping the city and surrounding region to grow its economy.
– The Government will back the reopening of Doncaster Sheffield Airport as South Yorkshire Airport City.
– A £65 million investment by the National Wealth Fund in expanding electric vehicle charging infrastructure.
– Government guidance on appraising major projects will be reviewed in order to support investments outside of the wealthy and productive south east of England.
– The Trade Secretary will travel to India to restart negotiations on a free trade agreement with the country.
