Mon, 27 Jan 2025

Will a third runway at Heathrow help UK growth?

Chancellor Rachel Reeves is set to announce expansion plans but some question the short-term benefits.

* Chancellor Rachel Reeves expected to announce plans for a third runway at Heathrow airport on Wednesday
* Opponents claim expansion would lead to higher emissions and blight local communities with noise and pollution
* Expansion of Heathrow is highly controversial, but supporters argue it would create jobs, promote trade and increase exports
* The construction project itself would create thousands of jobs, but the planning process could take at least three years
* Separate projects to expand Gatwick and Luton airports are well-advanced and could be signed off by the Transport Secretary within weeks
* A third runway at Heathrow is unlikely to become a reality for many years due to formal planning process and potential judicial review
* The real value of backing a third runway is the signal it sends to investors about UK's attitude towards major infrastructure projects
* Firm government support will be vital if the project goes ahead, with insiders saying £20bn investment would need close co-ordination with ministers
* Chancellor Reeves may benefit from throwing her weight behind airport expansion plans now, as it could factor into economic forecasts and help meet fiscal rules.
  >>