Rachel Reeves’s plans to approve a major expansion of London’s airports, including the long-debated third runway at Heathrow, have been branded ‘desperate’ as she attempts to boost economic growth.
The Chancellor is preparing to give the green light to three significant airport projects across the capital with plans to bring Gatwick’s second runway into full-time use and increase capacity at Luton airport.
Announcements are expected to come later this month as part of a broader speech on growth initiatives, despite anticipated opposition from senior Labour figures and environmental groups.
The Chancellor has been searching for policies to boost growth, which is predicted to be just 1.6 per cent this year.
Rising borrowing costs and a recent dip in the pound have forced Reeves to seek deep spending cuts whilst simultaneously looking for ways to stimulate the economy.
Last week, Reeves emphasised the need to move “further and faster” in pursuit of economic growth.
Rachel Reeves is expected to use a speech on growth next week to support the proposed third runway at Heathrow
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The airport expansion plans form part of a broader growth package that could include the £9billion Lower Thames Crossing project and a new Universal Studios theme park near London.
Heathrow’s £14billion third runway project could increase capacity by 260,000 flights annually.
Energy Secretary Ed Miliband is understood to be strongly opposed to the airport expansion plans as the move could complicate efforts to meet the UK’s carbon budget requirements, which Miliband oversees.
The Climate Change Committee has previously stated that “there should be no net airport expansion unless the carbon-intensity of aviation is outperforming the Government’s emissions reduction pathway”.
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Greenpeace UK’s policy director Doug Parr called the Heathrow plans “desperate”.
He said: “Resurrecting the idea of a third runway at Heathrow in the hope that a strip of tarmac will nudge up the UK’s GDP smacks of desperation.
“The economic benefits are dubious at best while the environmental costs in climate damage, noise and air pollution are certain.”
Reeves is expected to argue that a new sustainable aviation fuel mandate will offset the impact of expansion.
London Mayor Sadiq Khan has also voiced strong opposition to the expansion plans.
Ed Miliband is understood to be strongly opposed to the airport expansion plans
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A spokesman for Khan told the Guardian: “The mayor has a longstanding opposition to airport expansion around London – linked to the negative impact on air quality, noise and London’s ability to reach net zero by 2030.”
Labour backbenchers are expected to resist the proposals, particularly those representing constituencies near the airports.
Clive Lewis, MP for Norwich South, warned: “If these airport expansions go ahead then it looks increasingly like the Treasury is putting ‘growth’ above all else including our climate and nature commitments.”
The plans could face significant resistance from MPs focused on climate action.
Gatwick’s £2.2billion expansion would increase its capacity to 75 million passengers by the late 2030s through full-time use of its northern runway.
Luton’s proposed expansion includes a new terminal and taxiways, aiming to boost capacity to 32 million passengers by 2043.
Heathrow’s chief executive Thomas Woldbye has indicated the third runway plans are contingent on Government backing.
A Government spokesman said: “We are determined to get our economy moving and secure the long-term future of the UK’s aviation sector.
“All expansion proposals must demonstrate they contribute to economic growth, while remaining in line with existing environmental obligations.”
Gatwick boss Stewart Wingate has warned that London’s airports are already reaching capacity, with demand forecast to grow by over 30 million passengers by 2030.
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