Tuesday January 21, 2025 Government to signal backing for London airports expansion

Chancellor growth plan speech to give nod to Heathrow, Gatwick and Luton plans

The government is reported to be poised to give its backing for major expansion plans at London airports. 

Chancellor Rachel Reeves is expected next week to signal her support for a third runway at Heathrow, a second runway at Gatwick, and a near doubling of Luton Airport’s capacity.

According to leaks she will give the green light for the airports to expand in a speech setting her latest plans to boost economic growth next week.

The Chancellor said she was “not going to comment on leaks” when asked in the House of Commons about the expansion on Tuesday.

But reports say the Government is considering backing airport expansion as part of its growth drive.

At the end of last year the boss of Heathrow Airport said his company needed a “clear steer” from the new government by the end of 2025 before it looked seriously at resurrecting a £17bn plan to expand the airport and build a third runway.

London Gatwick’s £2.2bn plan to upgrade its northern taxiway to a main runway as part of its expansion is presently being considered by the Transport Secretary with a decision due before the end of next month.

While a decision on Luton £2.4bn airport’s expansion, which includes plans for a new terminal, is due by 3 April after being delayed at the end of 2024.

Luton Rising, the Luton Council company that owns the airport, is seeking development consent to build a new terminal, a major programme of earthworks to create an extension to the current airfield platform and new airside and landside facilities.