Rachel Reeves has suggested that the full Cabinet should support any potential expansion of Heathrow Airport despite past opposition from top Government figures, as she all but confirmed plans to back a third runway.
The Chancellor sidestepped questions on “speculation” about an imminent announcement she’s expected to make regarding the project but emphasised that decisions would be taken with “full collective ministerial responsibility”.
Grilled by Sunday show hosts on how Labour would reconcile its climate pledges with her growth agenda, Ms Reeves argued that advances in sustainable aviation technology mean it aligns perfectly with economic stimulation. “A lot (has) changed in terms of aviation,” she declared on BBC’s Sunday With Laura Kuenssberg.
“There’s huge investment going on in electric planes, and also a third runway will mean that instead of circling London, flights can land at Heathrow.” When pressed about whether an announcement on the airport’s expansion was on the horizon, Ms Reeves teased: “Well you’ll see the plans when we set them out.”
She added: “But already this Government had signed off expansion at London City Airport and Stansted Airport. Both of those decisions, again, were decisions that the previous Government had stalled. We are getting on and delivering, that will be good for investment and trade in our country and also good for families wanting to go on cheaper holidays as well.”
Senior Labour figures, including Cabinet colleagues and Prime Minister Sir Keir Starmer, have previously opposed expansion plans, while the aviation industry and business leaders have consistently supported them. Energy Secretary Ed Miliband has criticised the proposals in the past but recently said he would not step down if the Government backed a third runway.
However, London Mayor Sir Sadiq Khan, who was re-elected for a third term in 2024 on an anti-airport expansion platform, stated his views “haven’t changed” and suggested any plans would need to address noise pollution and carbon emissions. Speaking on Sky News’ Sunday Morning With Trevor Phillips, Ms Reeves said: “We’ll make announcements about policies when we’re ready to do so, with full collective ministerial responsibility.
“Let me be clear, this Government has already approved housing developments, a data centre infrastructure to support the AI and tech industry, and we’ve supported onshore wind developments. We have backed a number of developments to get our country growing again.”
Collective ministerial responsibility is a Westminster convention which means that all members of Cabinet must publicly back Government decisions even if they do not privately agree with them. Campaigners voiced concern over her comments on Sunday and their implications for what they described as a “uniquely complicated and costly third runway”.
Paul McGuinness, chairman of the No 3rd Runway Coalition, commented: “If, as is now expected, the Chancellor announces the go ahead for Gatwick’s and Luton’s expansions this week, then perhaps her supportive words about Heathrow are not as significant as some may think.
“Expansions at other London airports undermine the case for Heathrow’s uniquely complicated and costly third runway, making it an even riskier, if not un-investable proposition.”
In a speech on Wednesday, the Chancellor is likely to support proposals for a third runway at Heathrow Airport in west London, as well as expansion plans for Gatwick and Luton airports.
After a difficult start to 2025, marked by market turbulence and weak growth figures, Chancellor Reeves sought to instil optimism following a meeting with world leaders and business chiefs in Davos.
In an interview with the Times earlier this week, Ms Reeves stated that Britain needs “more positivity” and should be “shouting from the rooftops” about its strengths.
In her upcoming speech, Ms Reeves is also expected to unveil further changes to simplify planning regulations in order to stimulate building projects and revive the economy. .
The Government has vowed to tackle “blockers” and deliver 1.5 million new homes, while also securing decisions on 150 major infrastructure projects by the end of the Parliament. To date, 13 planning decisions have been made, and nine nationally significant infrastructure projects, including airports, energy farms, and housing developments, have been approved.
The Treasury plans to replace environmental assessments for building homes and infrastructure with a new system, which it claims will save developers time and money. The Planning and Infrastructure Bill, aimed at removing construction barriers and speeding up project approvals, is set to be introduced to Parliament in the spring, as confirmed by Ms Reeves.
In a separate move, the chairman of the UK’s competition watchdog has been replaced by a former Amazon executive, with the Chancellor suggesting the new post-holder should share the Government’s “mission” for growth. As the Government pushes forward with plans to cut red tape, Ms Reeves stated that the former head of the Competition and Markets Authority (CMA), Marcus Bokkerink, had stepped down due to a “different strategic approach to regulation”.
In his first comments since taking over, interim chairman Doug Gurr indicated that the regulator would support the Chancellor’s focus on boosting the economy, following a letter from over 100 Labour MPs urging a “rapid pro-growth review” of the organisation’s work. “It’s great to have this sort of clear-sighted input and support from parliamentarians,” Mr Gurr expressed.
“I think they’re right that the CMA can play a leading role in the ambitions for growth and prosperity laid out in the letter.”
He mentioned that the watchdog is “already working closely on how we take forward thinking to achieve that”. The Labour Growth Group, known for its centrist stance within the party, had reached out to Mr Gurr seeking discussions on aligning competition policy with the Government’s primary goal of economic growth.
Following his positive reply, the group responded: “We wrote to (the CMA) calling for a ‘rapid pro-growth review’ – and we welcome their response. They now have the chance to provide an example for others.”
