Healey backs Heathrow third runway growth case
Chancellor John Healey stated there is a pro-growth argument for the expansion, while PM Andy Burnham deferred the decision to London.
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Chancellor John Healey has stated there is a "pro-growth" case for proceeding with a third runway at Heathrow Airport. This comes as Prime Minister Andy Burnham has indicated the decision should be a matter for London and its residents. Healey's predecessor, Rachel Reeves, previously highlighted the runway as a key element for boosting business connectivity, stating it would "make Britain the world’s best-connected place to do business".
Government Stance on Expansion
Heathrow chiefs warn investors may quit over runway delay
Prime Minister Andy Burnham has expressed doubts, prioritising regional investment over airport expansion.
Since taking office in July, Prime Minister Burnham has not publicly backed the megaproject. A recent report suggested he expressed to Transport Secretary Heidi Alexander that he was "unconvinced" by the arguments for expansion. When asked about his views in Bangkok this week, Healey indicated the government would review responses to a recently closed public consultation. He presented a more positive outlook than the Prime Minister, noting that airports have historically contributed significantly to jobs and growth across the UK.
Healey, whose government's "number one mission" is economic growth, previously voted in favour of the third runway in the House of Commons in 2018. His comments were made while attending International Monetary Fund annual meetings, shortly before returning to London to finalise the 28 October budget. The UK economy has shown unexpected growth, with the IMF urging Healey to maintain his fiscal course.
Investor Confidence and Next Steps
Heathrow boss: Third runway a 'huge missed opportunity' for UK
Airport chief warns investment will go elsewhere if expansion plans are not approved.
Heathrow's chief executive, Thomas Woldbye, has cautioned that investors might withdraw their support for the estimated £33 billion project if it lacks prime ministerial backing. Woldbye stated that while shareholders are patient, "we cannot wait for ever." The airport's ownership includes Qatar's investment authority, Ardian, Saudi Arabia's Public Investment Fund, and Singapore's sovereign wealth fund GIC. These owners are reportedly expected to make a decision in the coming months regarding an application for formal planning permission.
Questions this report answers
+What is Chancellor John Healey's position on a third Heathrow runway?
Chancellor John Healey has stated that there is a "pro-growth" case for a third runway at Heathrow. He noted that airports have historically been significant contributors to jobs and economic growth across the UK.
+What has Prime Minister Andy Burnham said about the Heathrow runway decision?
Prime Minister Andy Burnham has suggested that the decision on whether to proceed with a third runway at Heathrow should be a matter for London and Londoners. He has not publicly backed the project since taking office.
+What is the potential impact on investors if the project lacks prime ministerial support?
Heathrow's CEO, Thomas Woldbye, has warned that investors may reconsider their backing for the £33 billion project if it does not receive prime ministerial support. He indicated that while shareholders are patient, there is a limit to how long they can wait.
+When might Heathrow's owners decide on applying for planning permission?
Heathrow's owners are expected to make a decision in the coming months regarding whether to apply for formal planning permission for the third runway project.
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