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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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.”
In a statement on Monday, Lineker said: “Football has been at the heart of my life for as long as I can remember – both on the pitch and in the studio.
“I care deeply about the game, and about the work I’ve done with the BBC over many years. As I’ve said, I would never consciously repost anything antisemitic – it goes against everything I stand for.
“However, I recognise the error and upset that I caused, and reiterate how sorry I am. Stepping back now feels like the responsible course of action.”
Image: Lineker has fronted Match Of The Day since 1999. PA
Lineker said he deleted the post when he learned about the rat’s symbolism, adding that he would “never knowingly share anything antisemitic”.
In a video posted to Instagram, the pundit added: “I’ve stood up for minorities and humanitarian issues and against all forms of racism all of my life, including, of course, antisemitism, which I absolutely abhor.
“There’s no place for it and never should be.”
He went on to thank the “brilliant, talented” people he has worked with and described his relationship with the BBC as “long and wonderful”.
He added: “But it’s the right time for the organisation and myself to go our separate ways.”
Lineker’s last appearance on the BBC will be on Sunday 25 May, the final day of the season.
What are the BBC guidelines on impartiality?
Gary Lineker signed a five-year deal with the BBC in 2020, under which he agreed to adhere to their impartiality rules.
The rules were then updated after his return to Match Of The Day in 2023.
The latest regulations say high-profile BBC presenters should be able to express their views on political issues as long as they stop short of campaigning.
It does not clarify what would constitute political campaigning for the big-name presenters.
The guidelines also stress the importance of “high standards of civility in public discourse”, which includes treating others with respect, even in the face of abuse and not using offensive or aggressive language.
The policy only applies to presenters outside of its news coverage. News presenters are still subject to stricter impartiality guidelines.
‘A defining voice in football coverage’
Also confirming Lineker’s exit, BBC director general Tim Davie said: “Gary has acknowledged the mistake he made. Accordingly, we have agreed he will step back from further presenting after this season.
“Gary has been a defining voice in football coverage for the BBC for over two decades. His passion and knowledge have shaped our sports journalism and earned him the respect of sports fans across the UK and beyond.
“We want to thank him for the contribution he has made.”
Image: Kelly Cates, Mark Chapman and Gabby Logan will share the role of presenting Match of the Day. Pic BBC/PA
The former England star announced in November he would step down from Match Of The Day this year, but was set to return to front the World Cup in 2026, as well as FA Cup coverage.
The presenter was temporarily suspended from the BBC in March 2023 after an impartiality row over comments he made criticising the then Conservative government’s asylum policy.
He will be replaced on Match Of The Day by Gabby Logan, Kelly Cates and Mark Chapman, who will share the presenting role from the next Premier League season.
He is also the co-founder of podcast producing company Goalhanger, which makes the popular The Rest Is History series and its spin-offs about politics, football, entertainment and money.
Lineker parting ways with the BBC also includes the licensing deal for Goalhanger podcast titles on BBC Sounds which ends this year, the PA news agency reported.
A “significant amount of personal data” of people who applied to the Legal Aid Agency – including criminal records – was accessed and downloaded by hackers, the Ministry of Justice (MoJ) has said.
The group that carried out the cyber attack says it accessed 2.1 million pieces of data, but the MoJ has not verified that figure, it is understood.
The government became aware of the incident on 23 April, but realised on Friday it was more extensive than first thought.
An MoJ source put the breach down to the “neglect and mismanagement” of the previous government, saying vulnerabilities in the Legal Aid Agency systems have been known for many years.
The Legal Aid Agency (LAA), is an executive agency, sponsored by the MoJ, which is responsible for administering legal aid funding – around £2.3bn in 2023/24.
The data accessed affected those who applied for legal aid in the last 15 years, and may include contact details and addresses of legal aid applicants, their dates of birth, national insurance numbers, criminal history, employment status and financial data such as contribution amounts, debts and payments.
The MoJ has urged anyone who applied for legal aid since 2010 to update any passwords that could have been exposed, and be alert to unknown messages and phone calls.
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The organisation’s digital services, which are used by legal aid providers to log their work and get paid, have been taken offline.
‘We needed to take radical action’
Legal Aid Agency chief executive Jane Harbottle has apologised for the breach and acknowledged the news would be “shocking and upsetting”.
“Since the discovery of the attack, my team has been working around the clock with the National Cyber Security Centre to bolster the security of our systems so we can safely continue the vital work of the agency,” she said.
“However, it has become clear that, to safeguard the service and its users, we needed to take radical action. That is why we’ve taken the decision to take the online service down,” she said.
Ms Harbottle said contingency plans are in place for those who need legal support and advice.
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Retail disruption to ‘last months’
The Law Society, an organisation representing solicitors across the UK, blamed the attack on Legal Aid’s “antiquated IT system”.
“The incident once again demonstrates the need for sustained investment to bring the LAA’s antiquated IT system up to date and ensure the public have continued trust in the justice system,” said a Law Society spokesperson.
The Ministry of Justice (MoJ) said it is working with the National Crime Agency and National Cyber Security Centre to investigate the data breach.
The National Crime Agency said it was aware of the incident and was working closely with the MoJ to “better understand the incident and support the department”.
It comes after retailers Co-op, Harrods and Marks & Spencer were hit by cyber attacks, although there is no suggestion that they are connected to the incident at the LAA.
The Who’s drummer Zak Starkey has been sacked by the band, marking the second time he has left in the past month.
The band’s guitarist Pete Townshend made a statement on Instagram on Sunday, saying: “After many years of great work on drums from Zak the time has come for a change.
“A poignant time. Zak has lots of new projects in hand and I wish him the best.”
The announcement comes weeks before the iconic British rock group’s farewell tour.
In response, Starkey, who had been a band member since 1996, said in an Instagram post he would “never have quit” and had experienced “weeks of mayhem”.
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“I was fired two weeks after reinstatement and asked to make a statement saying I had quit to follow my other musical endeavours,” he wrote.
“Not true. I love The Who and would never have quit and let down so many amazing people who stood up for me through all this madness.”
Reports surfaced in April that the band had taken the “collective decision” to sack Starkey after a row over their Teenage Cancer Trust shows in March.
Image: Roger Daltrey and Starkey on stage at the Royal Albert Hall in March. Pic: PA
A review of one gig, published in the Metro, suggested frontman Roger Daltrey, who launched the annual gig series for the charity in 2000, had been “frustrated” with the drumming during some tracks.
According to the review, Daltrey at one point paused a song and said: “To sing that song I do need to hear the key, and I can’t. All I’ve got is drums going boom, boom, boom. I can’t sing to that. I’m sorry guys.”
At the time, the 59-year-old drummer said he was “surprised and saddened” by news of his sacking.
Three days after the reports came out, a statement on the band’s official social media pages titled “News Flash! Who Backs Zak,” said he was “not being asked to step down from The Who”.
In it, Townshend said: “There have been some communication issues, personal and private on all sides, that needed to be dealt with, and these have been aired happily.
“Roger and I would like Zak to tighten up his latest evolved drumming style to accommodate our non-orchestral line-up and he has readily agreed.”
Later in the lengthy statement, he said regarding the gigs: “Zak made a few mistakes and he has apologised.”
At that point, Starkey – who is the son of The Beatles drummer Ringo Starr – reposted Townshend’s statement, with the message: “V grateful to be a part of the Who family Thanks Roger and Pete xx”.
Starkey also drums for supergroup Mantra Of The Cosmos – along with fellow musicians Shaun Ryder and Bez from Happy Mondays, and Andy Bell of Ride and Oasis – and has previously played with Oasis, Lightning Seeds and Johnny Marr.