Heathrow expansion can be done in a decade, says Rachel Reeves

Heathrow Airport’s third runway can be built in the next decade, Rachel Reeves has said, as she aims to boost growth amid the UK’s gloomy economic outlook.

The Chancellor said she wanted to see the expansion completed by 2035, through a combination of support for the long-delayed project from ministers and reforms to the planning system the Government is pushing.

The whole Cabinet is “united” behind the plan, Ms Reeves said, as some media reports suggest senior ministers are wary of the move as it could conflict with the UK’s climate commitments.

The third runway was among a throng of major projects Ms Reeves said the Government would support, in a speech on Wednesday aimed at unlocking economic growth across the UK.

Asked when the new runway would be in use, the Chancellor told BBC Breakfast: “I think we can get that done in a decade.”

Pressed whether this meant planes would be using it by 2035, Ms Reeves responded: “That is what we want to achieve and that is what Heathrow wants to achieve.”

She had earlier told the programme she wanted to see “spades in the ground in this parliament” but it was up to Heathrow to come forward with plans by the summer.

Reforming the planning system would “make it easier to build big infrastructure projects, like a third runway at Heathrow”.

The Chancellor also said she has “huge respect” for London Mayor Sir Sadiq Khan, but signalled she disagreed with his opposition to a third Heathrow runway.

Asked by broadcaster LBC whether Energy Secretary Ed Miliband – who is widely believed to be the Cabinet minister most sceptical of Heathrow expansion – was fully behind the plans, Ms Reeves said: “Yes, we are all united as a Cabinet backing these plans.”

Ms Reeves has previously opposed the expansion of Leeds-Bradford Airport.

But the Chancellor, who represents the Leeds West and Pudsey constituency, said she was now open to the idea of a new terminal at the site, if the owner “came back with plans to expand”.

Ms Reeves’ speech on Wednesday also committed the Government’s support for boosting growth across the region between Oxford and Cambridge, which she said could become Europe’s answer to Silicon Valley.

Investments in the East-West Rail link, road upgrades and new reservoirs were among the steps Ms Reeves announced, which could generate an extra £78 billion for the economy by 2035.

The Chancellor also confirmed the Government would back the regeneration of Manchester United’s Old Trafford stadium to provide new homes and jobs in Greater Manchester.

But amid the growth-focused announcements, well-known businesses are preparing lay-offs ahead of the national insurance contribution hike the Chancellor announced in the Budget.

Supermarkets Sainsbury’s and Tesco are among the household names making cuts ahead of the rise, which businesses will start paying in April.

The risk of Ms Reeves breaking her own fiscal rules is on a “knife edge” amid economic uncertainty and high interest rates, an influential think tank has warned.

The Resolution Foundation’s latest research said the Chancellor has very little wriggle room to meet her commitment to balance day-to-day spending and tax receipts within a five-year forecast period.

Having ruled out further tax rises and borrowing, the Chancellor may be forced to make cuts to public spending in the spring to stay within the self-imposed rules and maintain market confidence, the think tank said.

While ministers expect Heathrow Airport will provide its plans for a third runway by June, Downing Street would not reveal whether the process after this could lead to a Commons vote on the project.

“We’re focused at the moment on these initial stages, which is to invite proposals from Heathrow, and then for the Government to update the airport national policy statement,” the Prime Minister’s official spokesman told reporters.