Chancellor Rachel Reeves announces backing for third Heathrow runway

Published

7 months ago

January 29, 2025

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The government supports a third runway at Heathrow, Chancellor Rachel Reeves has announced.

Ms Reeves said the expansion of Europe’s busiest airport was “badly needed” to connect the UK to the world and open up new opportunities for growth.

A third runway will “unlock further growth, boost investment increase exports and make the UK more open and more connected”, she said.

Politics latest: Reaction to third runway decision

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.

Conservative leader Kemi Badenoch told Sky News over the weekend she supports a third runway.

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.”

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”.

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”.

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.

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.

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.”

UK

Reform took advantage of the PM’s holiday – and it’s clear he’s now changed strategy

Published

60 mins ago

September 2, 2025

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Reform took advantage of the PM's holiday - and it's clear he's now changed strategy

Immigration was the first thing on the government’s agenda to kick off the first week back from recess, and they wanted you to know it.

The home secretary gave an update to the House, announcing a shakeup of family reunion rules for asylum seekers, even before some backbenchers had made it back to parliament from their break.

Facing criticism for being on the back foot after a summer of protest outside asylum hotels, they were keen to defend their record and get back on track – but is it too late?

It’s a clear nod to the political void Reform UK has seized on while the prime minister has been on holiday.

Last week, Nigel Farage unveiled his party’s mass deportation policy – though the issue of women and children still seems to be worked out.

But perhaps none of that matters as voters overwhelmingly believe Reform cares about this issue – and as Chris Philp, the shadow home secretary, pointed out on Monday, voters have lost confidence in the government somewhat to solve what many see as an immigration crisis on their doorstep.

So it’s clear the strategy has changed from the government.

Gone are the bold slogans of “smashing the gangs” and instead, detail and policy was given on Monday. It was nothing new, but more substance on what the government has done and where they want to move to. Even controversially, reassessing their relationship with the European Convention on Human Rights (ECHR).

The biggest update though, was on their one-in-one-out policy agreement with France, which will now set to start returns later this month.

It’s finally hit home for the government that the public want proof not just rhetoric, and they want to know crucially when they will start to see change.

But the fightback, the reset, whatever the government wants to call it, will only make a difference once that finally starts to work.

UK

Police ask for help with unsolved murder more than 50 years ago

Published

60 mins ago

September 2, 2025

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Police ask for help with unsolved murder more than 50 years ago

Police are asking for help with an unsolved case, 52 years after the murder of a schoolboy in Belfast.

Brian McDermott was 10 when he disappeared from Ormeau Park on Sunday 2 September 1973. His remains were recovered from the River Lagan almost a week later.

Detectives from the Police Service of Northern Ireland’s Legacy Investigation Branch have given a timeline of events as part of their appeal.

Brian left his home on Well Street in the lower Woodstock Road area of east Belfast at around 12.30pm and failed to return for his Sunday dinner.

Detectives said he was last seen playing alone in the playground between 1pm and 3pm that afternoon.

His remains were recovered in the water, close to the Belfast Boat Club.

A PSNI spokesperson said: “We are acutely aware of the pain and suffering that Brian’s family continue to feel, and our thoughts very much remain with the family at this time.

“Despite the passage of time, this murder case has never been closed and I am hopeful that someone may be able to provide information, no matter how small, which may open a new line of inquiry, or add a new dimension to information already available.

“It is also possible that someone who did not volunteer information at the time may be willing to speak with police now. Legacy Investigation Branch Detectives will consider all investigative opportunities as part of the review into Brian’s murder.”

UK

Premier League flexes its financial muscle in record-breaking transfer window

Published

60 mins ago

September 2, 2025

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Premier League flexes its financial muscle in record-breaking transfer window

The transfer window was a show of strength in a record-breaking summer across the Premier League.

The totaliser crept over £3bn in spending, with more than half of it flowing among the 20 clubs rather than having a redistributing effect across Europe.

The start of new Premier League TV deals – the biggest individual source of income being from Sky News’ parent company Comcast – provides certainty for the next four years, while rival leagues can struggle to sell rights.

And the feared threat from Saudi Arabia has not materialised. It is an attractive and lucrative destination for some players, but not yet the ultimate destination.

But the kingdom has still influenced this transfer window.

Let’s start with Newcastle, four years into their ownership by the Saudi sovereign wealth fund.

Having secured a return to the Champions League, bringing UEFA riches, this was the summer to grow rather than lose talent to rivals.

But the Premier League’s pecking order became clear when Alexander Isak pushed for a move to Liverpool and rejected bids that did not deter his ambitions.

Player power won out.

The 25-year-old striker was able to withdraw himself from the squad, miss the opening three matches of the season, and put out a statement claiming promises had been broken by the Magpies.

Liverpool ‘loading up on talent’

And so he held on until deadline day, biding his time, sitting it out, and standing firm. Newcastle folded, accepting £125m – £20m lower than their apparent valuation.

Breaking the British record fee was Liverpool’s American ownership flexing financial muscle like never before.

The Premier League champions allowed manager Arne Slot to build from a position of strength.

This was the second time they broke the record in this window after bringing in another forward, Florian Wirtz, in a £116m deal.

More than £400m in reinforcements arrived at Anfield in a matter of weeks.

Former Liverpool managing director Christian Purslow told Sky Sports: “Liverpool are making hay while the sun shines, going for it. Really loading up on talent.

“Other clubs should be fearful and respectful of the way [Fenway Sports Group] are running their club.”

The Isak deal weakened their Champions League rivals from the North East after banking £57m from another club owned by the Public Investment Fund when Darwin Nunez was offloaded to Saudi.

And PIF funded Chelsea’s summer spending spree in less obvious ways.

The Blues did negotiate a £44m package with PIF-backed Al Nassr deal for Joao Felix, recouping the fee paid just a year earlier.

But then there was the £90m prize money collected for winning the new FIFA Club World Cup – a competition bankrolled by PIF subsidiaries.

Where does this leave Newcastle? Still spending around £250m.

Players and Liverpool couldn’t get all their way this summer, with Marc Guehi forced to stay at Crystal Palace after the FA Cup winners failed to secure a replacement for the England centre-back.

The late drama was just the latest of the summer transfer window’s twists and turns.

Both Arsenal and Manchester United also spent more than £200m each. The Gunners spent big in pursuit of a title that’s eluded them since 2004, while the Red Devils are just trying to get back into the Champions League.

It added up to a new record total outlay that comfortably eclipsed the previous Premier League record of £2.46bn from 2023.

The £3bn is more than the rest of Europe combined, showing both where the power is in world football and why the Premier League is the one the world wants to watch.