Heathrow Expansion Would Drive Growth, Chancellor Says

Chancellor John Healey has asserted that building a third runway at Heathrow Airport "has always been a case for growth," a statement made as Prime Minister Andy Burnham declined to explicitly back the expansion. Healey, speaking from International Monetary Fund (IMF) meetings in Bangkok, highlighted that airport expansion, including at Heathrow, has historically contributed significantly to jobs and economic growth over recent decades.

His predecessor, Rachel Reeves, had previously positioned Heathrow expansion as a central element in advocating for the United Kingdom's openness to business. However, Burnham has expressed more skepticism, telling the BBC that the decision is "a matter for London and Londoners."

This development follows a recent warning from Heathrow's chief executive, who described the failure to build a third runway at the UK's busiest airport as a "huge missed opportunity."

The proposal for a third runway at Heathrow has been a subject of debate for decades, encountering substantial opposition from local residents, politicians, and environmental campaigners. Last year, Reeves announced government backing for the expansion, stating that "a third runway is badly needed" and that the government could not "duck the decision any longer."

When questioned about the project last month, Burnham suggested that it should be a decision made by London. He added, "I think we ought to hear the voice of people there first. It's not right for me to just jump straight in on the back of the consultation."

The Department for Transport has indicated it is "considering the appropriate next steps" after the closure of the public consultation on its National Policy Statement, which forms the basis for decisions on granting a new runway at Heathrow. Healey informed reporters that the formal position is that the consultation has concluded, and the Transport Department is reviewing the submissions, with further announcements to follow.

The airport's ownership consortium has stated that explicit backing from Burnham is required before the end of the year for the project to proceed. Thomas Woldbye, the airport's chief executive, expressed hope that the prime minister would "come along" with the project, emphasizing that a third runway is "not just for Londoners" and that its benefits would be felt nationwide due to the airport's extensive supply chain.

Heathrow Airport currently handles over 80 million travelers annually with its four passenger terminals and two runways. The potential construction of a third runway could increase the number of flights from the current cap of 480,000 per year to 720,000, averaging nearly 2,000 flights per day.

The project carries an estimated cost of £33 billion and would necessitate the demolition of hundreds of homes, the diversion of rivers, and the rerouting of the M25 motorway through a tunnel between junctions 14 and 15. While the new runway was initially projected to open by 2035, contingent on planning and approval, Heathrow has since suggested a potential delay of four years, to 2039, due to planning and regulatory issues.