Political reporter
Jeff Overs/BBCThe chancellor has hinted the government would support a third runway at Heathrow Airport, saying “sustainable aviation and economic growth go hand in hand”.
Rachel Reeves told the BBC she would not comment on “speculation” and the government would set out its plans in due course.
However, she said a third runway at Heathrow “will mean that instead of circling London, flights can land” and that sustainable fuel was changing the carbon emissions from flying.
Reeves is expected to make an announcement backing airport expansion next week, as part of major speech on plans to boost the economy.
Asked if this was likely to include Heathrow, the chancellor did not answer directly but said the government had already signed off the expansion of London City Airport and Stanstead.
“That will be good for investment and trade in our country and also good for families wanting to go on cheap holidays,” she told the BBC’s Sunday with Laura Kuenssberg programme.
Reeves was also challenged over whether she agreed with criticism from Labour mayor of London Sadiq Khan that expanding Heathrow would have a damaging impact on air quality, noise and the capital’s ability to reach net zero.
In response she said “a lot has changed in terms of aviation”, with investment in sustainable fuel and electric planes.
The chancellor added: “I believe that clean energy, that reducing our carbon emissions are good for economic growth.”
Labour has made boosting economic growth central to its government’s mission, pledging to raise living standards and deliver the highest sustained economic growth in the G7 group of rich nations by the time of the next election.
But between July and September the economy had zero growth and the latest monthly figures for November showed just a small uptick.
In a speech on Wednesday Reeves is expected to unveil plans to help grow the economy, including cutting back planning rules and backing a third runway at Heathrow.
Over the weekend, the government has said it wants to fast-track permission for housing and commercial developments near transport hubs, as well as pare back environmental impact assessments.
However, the push for economic growth and promises to cut regulations have led some to question whether this is being prioritised over environmental concerns.
One former Labour frontbencher suggested the chancellor was in danger of looking “desperate” in her search for growth.
The expansion of Heathrow has long been opposed by green groups and some Labour MPs and residents living near the airport.
Sir Keir Starmer and seven ministers who attend his cabinet – including Energy Secretary Ed Miliband and Environment Secretary Steve Reed – voted against proposals for a third runway in 2018, when the party was in opposition.
London mayor Khan has said his opposition to a third runway has not changed and he would support a legal challenge if the government backed proposals.
There is currently no application for a third runway at Heathrow and in December the airport’s boss said the company needed a “clear steer” from the government by the end of 2025 for plans to be taken forward.
