Healey backs pro-growth case for Heathrow third runway as PM declines to endorse project

Chancellor's remarks contrast with Andy Burnham's refusal to back the £33bn expansion

By LineZotpaper
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Sources2 outlets
Chancellor John Healey has said there is a pro-growth case for building a third runway at Heathrow, striking a markedly more positive note than Prime Minister Andy Burnham, who has declined to back the long-planned megaproject.

Asked for his views in Bangkok this week, where he attended the International Monetary Fund annual meetings, Healey said the government would study responses to a public consultation that recently closed.

"I think in recent decades, and this is true in Heathrow and airports right across the UK, that they have been a big part of jobs and growth. And the case for a third runway at Heathrow has always been a case for growth," he said.

Healey insisted economic growth was his and Burnham's "number one mission" in government. His predecessor as chancellor, Rachel Reeves, put approval of the runway at the heart of her growth speech last year, saying it would "make Britain the world's best-connected place to do business".

Burnham, who became prime minister in July, has ducked the issue, suggesting it should be "a matter for London and Londoners". The Sunday Times has reported that he told Transport Secretary Heidi Alexander he was "unconvinced" by arguments for the project.

Heathrow's chief executive, Thomas Woldbye, has warned that investors could reassess their backing for the £33bn infrastructure project without the Prime Minister's support. "Our shareholders would like to do this," he said earlier this week. "They do think that things are taking a long time, and so far they have decided to be OK with that ... But of course we cannot wait for ever."

The airport's owners include Qatar's investment authority, French private equity firm Ardian, Saudi Arabia's Public Investment Fund and Singapore's sovereign wealth fund GIC. They are expected to decide in the coming months whether to apply for formal planning permission.

Healey voted in favour of the third runway when the House of Commons last considered it in 2018. He has returned to London to put the finishing touches to his 28 October budget. The IMF praised the UK this week for acting to cut its deficit, with managing director Kristalina Georgieva urging Healey to "stay the course". Official figures on Thursday showed the UK economy unexpectedly grew by 0.1% in August.

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Analysis

Why This Matters

  • The chancellor and prime minister are publicly at odds over a flagship infrastructure project, weeks before the 28 October budget.
  • A £33bn investment decision depends on government support, and Heathrow's owners have warned they will not wait indefinitely.
  • The outcome will signal how far the government is willing to go in pursuit of its stated growth mission.

Background

The third runway at Heathrow has been debated for years, with Parliament voting in favour of expansion in 2018. Successive governments have treated it as a test of the UK's willingness to build major infrastructure, while opponents have cited environmental damage, noise and cost. Rachel Reeves made the runway a centrepiece of her growth agenda; Burnham's government has been notably cooler, with the Prime Minister reportedly unconvinced and suggesting the decision is a matter for London.

Key Perspectives

John Healey, Chancellor: Airports have been "a big part of jobs and growth" across the UK, and the third runway has "always been a case for growth". Andy Burnham, Prime Minister: Has declined to back the project, calling it "a matter for London and Londoners", and is reportedly "unconvinced" by the arguments. Thomas Woldbye, Heathrow chief executive, and the airport's owners: Shareholders want to proceed but are growing impatient with delays and could reassess their backing. Critics and sceptics: Long-standing objections on environmental, noise and cost grounds remain, and the project's fate could turn on wider budget pressures.

What to Watch

  • Whether Heathrow's owners apply for formal planning permission in the coming months.
  • The 28 October budget and whether it gives any signal on the runway's fate.
  • The government's response to the public consultation that recently closed.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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