Reeves all but confirms backing for third Heathrow runway

Rachel Reeves suggested the full Cabinet must back any potential expansion of Heathrow Airport despite previous opposition from senior Government figures, as she all but confirmed plans to endorse a third runway.

The Chancellor refused to be drawn on “speculation” over an upcoming announcement she is expected to make about the project but said decisions would be subject to “full collective ministerial responsibility”.

Facing questions from Sunday broadcasters about how Labour would balance its climate commitments with her search for growth, Ms Reeves said developments in sustainable aviation mean it goes “hand in hand” with boosting the economy.

“A lot of changed in terms of aviation. A sustainable aviation fuel is changing carbon emissions from flying,” she told the BBC’s Sunday With Laura Kuenssberg show.

“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.”

Asked whether an announcement about the expansion of the airport was imminent, Ms Reeves said: “Well you’ll see the plans when we set them out.

“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 some of her Cabinet colleagues, and Prime Minister Sir Keir Starmer, have opposed expansion plans in the past, while the aviation industry and business chiefs have consistently been in favour.

Energy Secretary Ed Miliband has criticised the proposals previously but last week told the PA news agency he would not resign if the Government backed a third runway.

But London Mayor Sir Sadiq Khan, who won a third term in 2024 on a platform of opposing airport expansion in the capital, has said his views “haven’t changed” and suggested any plans would need mitigations for noise pollution and carbon emissions.

Speaking to 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, already this Government has signed off housing developments, a data centre infrastructure to support the AI and tech industry, we’ve supported onshore wind developments.

“We have supported 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 support Government decisions even if they do not privately agree with them.

The Chancellor is expected to use a speech next week to endorse proposals for a third runway at the west London airport, as well as expansion at Gatwick and Luton airports.

She has faced a bruising start to 2025, with government borrowing costs and the value of the pound buffeted by market turbulence, weak growth figures and concerns among business leaders about the year ahead.

But after returning from a meeting of world leaders and business chiefs in Davos this week, Ms Reeves sought to inject some optimism into the Government’s previous warnings over its challenging economic inheritance.

Britain needs “more positivity” and should be “shouting from the rooftops” about its strengths, she told the Times earlier this week.

Ms Reeves is also expected to use her speech to unveil more changes to slash planning red tape in a bid to kickstart building projects and revive the economy.

The Government has pledged to stop “blockers” and deliver 1.5 million new homes, as well as securing 150 decisions on major infrastructure projects by the end of the Parliament.

So far, it has taken 13 planning decisions and approved nine nationally significant infrastructure projects including airports, energy farms and housing developments.

Environmental assessments for building homes and infrastructure will be replaced with a new system which the Treasury says will save developers time and money.

The Planning and Infrastructure Bill, which aims to remove barriers which prevent construction, and to get projects approved faster, will be introduced to Parliament in spring, Ms Reeves confirmed.

On Sunday, the Chancellor also faced questions on Labour’s non-dom tax policies.

She did not comment on whether the government made a mistake with its non-dom tax policy but said its “basic principle” remains that those living in the UK should pay their taxes here.

Asked whether it had underestimated the number of wealthy people who would leave Britain because of the changes, the Chancellor told the BBC’s Sunday With Laura Kuenssberg: “It’s the basic principle for me Laura, that people who make their home in Britain should pay their taxes here, and under this Government people will.

“We’re getting rid of the non-domiciled status in the tax system.”

Asked again whether she got it wrong, because changes have since been made to the policy, Ms Reeves said: “We’re making changes to one part of the way in which very wealthy people from abroad are taxed.

“But it is a principle of this government, and actually the previous government also made changes around non-dom rules, that if you make Britain your home, you should pay your taxes.”

Press Association