It could increase potential GDP (Gross Domestic Product) by 0.43% by 2050 according to a Frontier Economics study, she said. 60% of that boost would go to areas outside London and the southeast, increasing trade opportunities like Scotch whiskey and Scottish salmon, she added.
Ms Reeves said an expansion could create more than 100,000 jobs.
The announcement has been welcomed by some business groups but has been met with anger from London’s Labour mayor Sadiq Khan, the Lib Dems, the Green Party and environmental groups.
Image: A plane taking off from Heathrow Airport. Pic: PA
As part of a speech on funding infrastructure across the UK to promote growth, Ms Reeves said: “Persistent delays have caused doubts about our seriousness towards improving our economic prospects.”
She added that business groups like the Confederation of British Industry (CBI), the Federation of Small Businesses (FSB) and the Chambers of Commerce (BCC), as well as trade unions “are clear – a third runway is badly needed”.
‘Britain is a country of huge potential that is untapped’
Speaking afterwards to Sky’s economics and data editor Ed Conway, Ms Reeves said: “I want Britain to be a magnet for foreign investment… we should be welcoming the best businesses and the best talent in the world. I want businesses around the world, investors around the world, to see in Britain, what I see, which is a country of huge potential that is untapped.”
The chancellor also spoke of helping British companies to scale up.
She said: “We are introducing the capital market reforms, particularly around pension reform, unlocking £80bn of long-term patient capital by creating these mega funds, the mergers of defined contribution and local government pension schemes, to create those larger funds that can invest at scale in the exciting opportunities in the UK.
“Building on what countries like Australia and Canada do with their big pension funds, to support British industry, and particularly that stage of a business career when they’ve had the start-up and the seed funding, but now they’re looking to scale up, but they find that the access to finance isn’t available in the UK, and often look, to example, for the United States.”
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4:48
Britain has ‘huge potential’
Investments in green aviation fuel
Ms Reeves said in her speech that the UK is “already making great strides in transitioning to cleaner and greener aviation” and announced the government is investing £63m over the next year into the Advanced Fuel Fund grant programme to support the development of sustainable aviation fuel production plants.
The government will be accepting proposals until the summer and will then carry out a “full assessment” through the Airport National Policy Statement to “ensure a third runway is delivered in line with our legal, environmental and climate objectives”.
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Three main points from chancellor’s big speech
Ms Reeves said the government expects any associated surface transport costs to the third runway’s construction to be financed through private funding.
She added a decision on plans to expand Gatwick and Luton, which are currently under way, will be made by the transport secretary “shortly”.
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How do we judge Labour’s success?
A decades-old debate
The debate around whether Europe’s busiest airport should expand has been circling over British politics for decades.
Ms Reeves’s decision will likely put her at odds with Climate Secretary Ed Miliband, who has said airport expansions will not go ahead if they cannot meet climate targets.
However, he said last week he would not resign if the government approved a third runway despite threatening to resign from Gordon Brown’s cabinet as climate change secretary in 2009 over the plans and in 2018 he said an expansion was “very likely” to make air pollution worse.
He has now said the government can meet both its growth and net zero missions together.
Image: Labour’s London mayor Sadiq Khan has opposed the government’s plan
London mayor opposes runway
Sadiq Khan said he remained opposed to a third runway “because of the severe impact it will have on noise, air pollution and meeting our climate change targets”.
He said he will carefully scrutinise any new proposals, “including the impact it will have on people living in the area and the huge knock-on effects for our transport infrastructure”.
“Despite the progress that’s been made in the aviation sector to make it more sustainable, I’m simply not convinced that you can have hundreds of thousands of additional flights at Heathrow every year without a hugely damaging impact on our environment,” he added.
Image: Heathrow is right next to large residential areas. Pic: PA
Green Party MP Sian Berry said expanding airports “in the face of a climate emergency is the most irresponsible announcement from any government I have seen since the Liz Truss budget”.
Conservative shadow chancellor Mel Stride accused Ms Reeves and Sir Keir Starmer and “their job-destroying budget” of being “the biggest barriers to growth”.
“What’s worse, the anti-growth chancellor could not rule out coming back with yet more tax rises in March,” he added.
“This is a Labour government run by politicians who do not understand business, or where wealth comes from. Under new leadership, the Conservatives will continue to back businesses and hold this government to account.”
The daughter of a man who was killed by two children has told Sky News “there is a possibility” he could have still been alive if police had taken anti-social behaviour reports more seriously.
Susan Kohli has spoken to The UK Tonight With Sarah-Jane Mee about what she says were failures by the Leicestershire force, leading up to the death of her 80-year-old father Bhim Kohli near Leicester in September 2024.
Mr Kohli was racially abused and physically attacked just yards from his home as he walked his dog in Franklin Park, Braunstone Town. He suffered a broken neck and fractured ribs, and died in hospital the next day.
Image: Susan Kohli
Susan Kohli is critical of how LeicestershirePolice dealt with earlier reports of anti-social behaviour in the area in July and August 2024, before the attack on her father. The force said it did not identify misconduct or missed opportunities, which could have prevented Mr Kohli’s death.
In one of the cases, Ms Kohli said her father faced abusive and racist comments and was spat at. Although the incident in August was not related to her father’s death, she believes a stronger police response could have deterred her dad’s killers.
“Why is it that they’re not taking these things seriously? Are they just waiting for something to happen? Because that’s literally what it looks and feels like.
“They waited for someone to lose their life before they took any stance. If they had arrested these two boys prior to that incident on the 1st of September, there is a possibility my dad could still be here,” she said.
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A boy, who was 14 at the time of the attack, and a girl, who was 12, denied their part in the killing but were found guilty of manslaughter at Leicester Crown Court in April. The pair cannot be named because of their age.
Jurors heard the boy kicked and punched Mr Kohli – encouraged by the girl who recorded parts of the attack while laughing.
Image: Susan Kohli told Sarah-Jane Mee she felt the children’s sentences were too lenient
Ms Kohli said she felt their sentences were too lenient after the boy received seven years’ detention while the girl was given a three-year youth rehabilitation order.
“We need the sentencing guidelines to be looked at, whether it’s a child or an adult, they know what they are doing at that age.
“Why is it that because they are a child that they get half the sentence of an adult? He’s going to be out in three and a half years or even less. How is that justice for taking somebody’s life? But that’s not justice at all. They’ve given us a life sentence.”
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Daughter’s anger over child killers
In August, the Court of Appeal ruled the boy’s sentence will not be changed, saying it was neither unduly lenient nor manifestly excessive.
Solicitor General Lucy Rigby had referred the sentence to the court under the unduly lenient sentence scheme. The girl’s sentence was not referred to the Court of Appeal.
Leicestershire Police told Sky News that, due to prior police contact with Mr Kohli, the force referred itself to the Independent Office for Police Conduct (IOPC).
The force found that proportionate and reasonable lines of enquiry were followed and concluded that no misconduct or missed opportunities which could have prevented Mr Kohli’s death were identified.
Chief Superintendent Jonathan Starbuck said: “The death of Bhim Kohli is an extremely shocking, traumatic and upsetting incident and our thoughts, sorrow and sympathies continue to remain with Mr Kohli’s family and friends.
“We know that anti-social behaviour has a huge impact on people’s lives. Preventing and addressing incidents and community concerns is of the utmost importance to our force in order to ensure the safety of our residents. This is something we continue to work on, address and to make ongoing improvements wherever we can.
“Through our own local investigation, following direction by the IOPC, we also identified organisational learning in relation to improving our system of logging and tagging anti-social behaviour incidents.”
An IOPC spokesperson said: “We agreed with Leicestershire Police’s finding that police officers did proactively investigate matters reported to them and there was nothing to indicate any officers or police staff committed a criminal offence or behaved in a manner justifying disciplinary proceedings.
“And we agreed with learning identified by the force in respect of accurately recording and tagging incidents of anti-social behaviour (ASB), thus ensuring incidents can be dealt with appropriately and to support the long-term management and deterrence of ASB.”
The UK has just sizzled through its hottest summer on record, a phenomenon made 70 times more likely by climate change, the Met Office said today.
It beat the previous high set in 2018, and kicks the notoriously hot summer of 1976 into sixth place.
The persistent heat drove hosepipe bans, “nationally significant” water shortfalls, and even a “false autumn” in places.
The new provisional data found temperatures between 1 June and 31 August 2025 were 16.10C on average across the UK – much higher than the previous record of 15.76C in 2018.
The difference might sound small, but – as an average over a three-month period, including day and nighttime temperatures – is in fact substantial.
All the top five warmest summers have occurred since the year 2000, which the Met Office called a “clear sign of the UK’s changing and warming climate”.
Image: This summer was the hottest by far, much warmer than all the previous records, and relegating 1976 to sixth place.
Did autumn come early this year?
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The heat gave rise to early signs of autumn, with blackberries ripening early and leaves turning brown and falling to the ground in August.
This so-called “false autumn” is not the early arrival of the next season, but a survival mechanism of trees and plants when stressed by extreme summer conditions.
They shed leaves and fruit ahead of schedule to conserve water and energy, especially the younger trees whose shallow roots can’t access moisture further underground.
Kevin Martin from Kew Gardens called false autumns a “visible warning sign”.
“Trees are remarkably resilient, but they are also long-lived organisms facing rapid environmental changes.”
Was this summer warmer than 1976?
This summer was the hottest on record going back to 1884, and far warmer even than the memorably hot summer of 1976, which now trails in sixth place.
The Met Office’s Dr Mark McCarthy said this shows how “what would have been seen as extremes in the past are becoming more common in our changing climate”.
The summer of 1976 is remembered for its heatwave that lasted more than two weeks, and 16 days in total with temperatures over 32C.
Although 2025 has had just nine days of temperatures over 32C, what is “striking” about this summer is how consistently warm it was, the Met Office said.
Why was this summer so warm?
There were a number of factors that made it so warm, so persistently.
Lingering high pressure made for settled, sunny and warm weather, and fuelled four heatwaves.
It was also very dry, with about a quarter less rain than average for summer – though that varied by region. But it followed the driest spring in England for more than a century.
Dry ground holds less moisture that can evaporate: a process that usually cools things down.
And a marine heatwave sent sea temperatures on the surface well above average, with a knock-on impact on air temperatures.
Overnight temperatures were also high, keeping the average up.
What about climate change?
Climate change made a summer as hot or hotter than this year 70 times more likely, the Met Office said.
It adds another layer of heat on top of the other weather patterns that may have happened without humans changing the climate.
The UK is warming by roughly 0.25C per decade, and is already at least 1.24C warmer than the period between 1961-1990.
Without climate change, a summer like in 2025 would have happened about once in every 340 years. Now it’s expected once in five years.
Anna Roguski from Friends of the Earth, said the summer “underlined how unprepared the UK is for extreme heat”.
She said we “urgently” need to adapt towns with things like stricter building standards, shaded streets and “far more nature woven through neighbourhoods – trees, wetlands and green spaces help to keep things cool”.
“But adaptation alone won’t be enough. To stop summers spiralling ever hotter, we must slash emissions.”
A retired Church of England vicar who was part of an extreme body modification ring run by man who called himself the Eunuch Maker has been jailed for three years.
Warning: The following article contains graphic details of extreme physical mutilation
Reverend Geoffrey Baulcomb, 79, pleaded guilty to causing grievous bodily harm with intent after a nine-second video of him using nail scissors to perform a procedure on a man’s penis in January 2020 was found on his mobile phone.
He also admitted seven other charges, including possessing extreme pornography and making and distributing images of children on or before 14 December 2022.
Prosecutors said some of the material included moving images which had been on the eunuch maker website, run by 47-year-old Norwegian national Marius Gustavson.
Image: Marius Gustavson
Gustavson was jailed for life with a minimum term of 22 years last year after a court heard he made almost £300,000 through his website, where thousands of users paid to watch procedures, including castrations.
Baulcomb was said to have been an “acquaintance” of Gustavson, and the pair exchanged more than 10,000 messages with each other over a four-year period.
He was formerly a vicar at St Mary the Virgin Church in Eastbourne but retired from full-time ministry in the Church of England in 2003.
The diocese of Chichester said he applied for “permission to officiate”, which allows clergy to officiate at church services in retirement, when he moved to Sussex the following year.
But Baulcomb was banned for life from exercising his Holy Orders following a tribunal last year, which heard he was issued with a caution after police found crystal meth and ketamine at his home in December 2022.
He had claimed experimenting with drugs or allowing his home in Eastbourne to be used for drug taking would “better enable him to relate and minister to people with difficulties as part of his pastoral care”.
The diocese said the Bishop of Chichester immediately removed his permission to officiate after being contacted by police, and bail conditions prevented him from attending church or entering Church of England premises.
‘Nullos’ subculture
The Old Bailey heard last year that extreme body modification is linked to a subculture where men become “nullos”, short for genital nullification, by having their penis and testicles removed.
Gustavson and nine other men have previously admitted their involvement in the eunuch maker ring, which one victim said had a “cult-like” atmosphere.
The life-changing surgeries, described as “little short of human butchery” by the sentencing judge, were carried out by people with no medical qualifications, who he had recruited.
Prosecutors said there was “clear evidence of cannibalism” as Gustavson – who had his own penis and nipple removed and leg frozen so it needed to be amputated – cooked testicles to eat in a salad.
Gustavson, who was said to have been involved in almost 30 procedures, pleaded guilty to charges including conspiracy to commit grievous bodily harm between 2016 and 2022.
This breaking news story is being updated and more details will be published shortly.