Reeves says growth eclipses net zero as Heathrow runway decision looms

Share:
Reeves says growth eclipses net zero as Heathrow runway decision looms
Author: Heather Stewart in Davos
Published: Jan, 22 2025 17:00

Chancellor hints in Davos she intends to reaffirm backing of airport expansion despite climate concerns. Economic growth is more important to the UK government than net zero, Rachel Reeves has said, dropping a heavy hint that she intends to shrug off climate concerns and reaffirm her backing for a third runway at Heathrow.

 [Rachel Reeves, centre, attends a Bloomberg event alongside the business secretary, Jonathan Reynolds, right, in Davos.]
Image Credit: the Guardian [Rachel Reeves, centre, attends a Bloomberg event alongside the business secretary, Jonathan Reynolds, right, in Davos.]

The chancellor is expected to give her firm support to the expansion of Britain’s busiest airport – as well as bringing a second runway at Gatwick into full-time use and increasing the capacity of Luton – in a speech later this month. The climate secretary, Ed Miliband, is understood to be opposed to Heathrow expansion, and the mayor of London, Sadiq Khan, has gone public with his concerns about the plan.

But speaking to reporters at the World Economic Forum in Davos, Switzerland, Reeves appeared to dismiss such objections, repeatedly emphasising that growth, not net zero, was the government’s “No 1 mission”. Asked about the Heathrow decision, which is expected as soon as next week, and the potential clash with the government’s climate commitments, the chancellor said: “Growth is the No 1 mission of this government, because growth underpins everything else, whether that is improving our schools and our hospitals, or indeed being able to get to net zero.”.

Pressed on what she would do if forced to choose between net zero and economic growth, Reeves said: “Well, if it’s the No 1 mission, it’s obviously the most important thing.”. With gross domestic product data indicating that the economy barely grew in the latter part of 2024, the government has been stressing its pro-business credentials, believing private sector investment is the key to kickstarting growth.

Share:

More for You

Top Followed