UK chancellor Rachel Reeves has today confirmed the government's backing of plans to add a third runway at Heathrow Airport.
In a speech on economic growth, Reeves said that a third runway is “badly needed” and added that a decision on the development “could not be ducked any longer”.
Reeves believes the development of a new runway could create 100,000 jobs.
The government will invite proposals for the new runway to be brought forward by the summer. A full assessment of the proposals will then take place through the airport national policy statement.
This will ensure the privately financed project meets environmental targets and delivers value for money, Reeves claimed.
She also announced the government would invest £63m into advanced fuel and gave backing to plans for the Lower Thames Crossing - a new tunnel under the river Thames.
The news was welcomed by Logistics UK, which said the projects should be “progressed at pace” to boost the UK economy.
“If nationally important projects like the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefitting everyone nationwide," said Logistics UK chief executive David Wells.
"Heathrow is the UK’s biggest port by value, and a critical hub which provides access to the rest of the UK and the world for British business – the opening of a third runway will expand the reach of industry to new global markets both for imports and exports.
"The World Bank Logistics Productivity Index shows that the UK has slipped from 4th in the world to 19th in the last 10 years – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment.
“If we make the right investments, to get back to 4th in the World Bank index, Oxford Economics suggests that would turbocharge growth across the whole economy."
UK forwarder association BIFA also welcomed the news, although it added its focus in the meantime would remain on the current redevelopment of the airport's cargo area.
"The government's backing for a third runway at Heathrow is certainly of interest to BIFA members that offer international logistics services for cargoes moving by air, and although our members will still be wondering when any spade will hit the ground, they are ready to work with the airport authority on streamlining and improving services," said director general Steve Parker.
"Whilst we wait for a third runway, BIFA will focus on the airport's cargo development. And on behalf of our members, BIFA is already working closely with the airport to support its ambitious plans to deliver a fundamental change to the way cargo operates at the airport. The latest plans and software enhancements were revealed last October.
"These plans would mean a significant redevelopment of the cargo estate set to commence in the next two to three years, as the airport looks to accommodate rising demand, modernise some ageing first-line cargo handling facilities, and improve cargo flows and efficiency."
However, the plans will face strong opposition from within the ruling Labour Party, opposition MPs, local residents concerned about the impact on noise levels and environmental groups.
London’s Labour mayor Sadiq Kahn and the energy secretary Ed Miliband are thought to be against the plans. Miliband is responsible for ensuring the country remains within its carbon target as it seeks to reach net zero emissions by 2050.
Many backbenchers are also likely to oppose the plans on emissions and noise grounds.
The expansion was initially approved in 2018 but the UK has since committed to net zero emissions by 2050 and on December 4 2020 it pledged to cut carbon emissions by 68%, from what they were in 1990, by 2030.
The airport can seek a development consent order (DCO), a type of planning permission for nationally significant infrastructure, but has yet to do so.
And gaining the DCO may be difficult, as it will take into consideration stricter pledges to cut emissions made recently by the UK government.
Heathrow Airport is reportedly considering developing new plans for the extra runway which would not involve extensive work to lower the M25. An announcement on the new plan is expected later this year.
The news was also welcomed by Heathrow Airport, whose chief executive Thomas Woldbye said: "A third runway and the infrastructure that comes with it would unlock billions of pounds of private money to stimulate the UK supply chain during construction.
"Once built, it would create jobs and drive trade, tourism and inward investment to every part of the country. Successfully delivering the project at pace requires policy change – particularly around necessary airspace modernisation and making the regulatory model fit for purpose."
