Labour signifies it will again £14bn plan for Heathrow’s third runway

A third runway at Heathrow Airport could finally be built after more than 20 years of public wrangling, Government sources have indicated.

The £14 billion plan would form part of Chancellor Rachel Reeves‘ new dash for growth, which she describes in today’s Mail on Sunday as her version of Nigel Lawson’s ‘Big Bang’ economic reform during Margaret Thatcher’s administration.

However, the plan would need to meet strict environmental criteria on emissions if it is not to be thwarted by Labour’s green lobby, led by Energy Secretary Ed Miliband. 

Mr Miliband came close to quitting the same job towards the end of the Gordon Brown regime over the runway issue.

It could also put the Chancellor on a collision course with Labour’s London Mayor Sadiq Khan, who has argued that a third runway would ‘have a damaging impact on air quality, noise and London’s ability to achieve net zero carbon’.

A third runway at Heathrow Airport could finally be built after more than 20 years of public wrangling, Government sources have indicated

The £14 billion plan would form part of Chancellor Rachel Reeves ‘ new dash for growth

The extra runway would increase capacity by 260,000 flights a year, and meet business demand for the airport to become Europe’s dominant hub for both tourism and trade

A third runway was first mooted in a 2003 White Paper and Heathrow, the world’s fourth busiest airport, won government backing for it in 2018. 

The extra runway would increase capacity by 260,000 flights a year, and meet business demand for the airport to become Europe’s dominant hub for both tourism and trade.

The project, which would involve diverting the nearby M25 into a tunnel and demolishing hundreds of homes, a primary school and an energy plant, has been fiercely opposed by environmentalists and local residents.

The controversy led to Boris Johnson, who represented neighbouring Uxbridge, championing the idea of an alternative airport in the Thames Estuary, which became known as Boris Island.

A Government source said that Sir Keir Starmer’s administration would react positively if Heathrow resubmitted the plan.

The source said: ‘The ball is in Heathrow’s court. If another submission is received it will be assessed in line with our stated aim of boosting growth, as long as it is also compatible with strict environmental standards.’

Business leaders say other countries have expanded their ­airport capacity rapidly while the UK has dawdled over the decision.

Plans for a third runaway could put the Chancellor on a collision course with Labour’s London Mayor Sadiq Khan , who has argued that a third runway would ‘have a damaging impact on air quality, noise and London’s ability to achieve net zero carbon’

The expansion would be in keeping with Sir Keir’s separate pledge to reform planning rules in order to build 1.5 million homes.

But the project is likely to require breakthrough engine and fuel technologies being developed on a commercial scale if it is to be compatible with the Government’s net zero climate targets.

In 2018, the Commons voted in favour of the new runway, but four London boroughs secured a judicial review, backed by environmental group Greenpeace and Mr Khan. 

Business leaders say other countries have expanded their ­airport capacity rapidly while the UK has dawdled over the decision

Two years later, the Supreme Court overturned an earlier ruling that a third runway at Heathrow airport would be illegal, clearing the path for plans to be submitted.

Heathrow expects a record 82.8 million passengers this year, beating the previous record of 80.9 million set in 2019, just before the Covid pandemic led to a crash in numbers. 

In April, the airport posted a £189 million pre-tax profit for the first three months of 2024, compared to a £60 million loss during the same period last year.