Rachel Reeves reveals support for third runway at Heathrow
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Rachel Reeves has announced huge measures this morning as the Government aims to spark economic growth in the UK.
The Chancellor said at a Siemens facility in Oxfordshire that Britain has been “held back” and “accepted stagnation”.
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She added: “For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better.
“Low growth is not our destiny. But growth will not come without a fight. Without a Government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.”
2023 saw GDP grow by 0.3%. The Office for National Statistics (ONS) reports that GDP is estimated to have shown no growth in Quarter 3 (July to September) 2024, revised down from the first estimate increase of 0.1%.
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Rachel Reeves delivered a major speech this morning (Image: Getty)
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Plane flying over Hounslow (Image: Tim Merry/Staff Photographer)
The Chancellor has now given the green light for a third runway at Heathrow Airport. A decision on increasing operations at Gatwick and Luton airports will be made "shortly" by the transport secretary, the Chancellor said.
The Heathrow scheme alone is thought to cost ￡14billion, and could take 10 to 15 years to complete. Ms Reeves claimed that the project could increase GDP by 0.43% by 2050.
Officials will aim for proposals to be brought forward by the summer. Previously laid out legal, environmental and climate pledges will be met, the Chancellor said.
Water companies can now spend ￡7.9billion to build new reservoirs.
Also announced was Ms Reeves' intention to create Europe's Silicon Valley between Oxford and Cambridge. This will comprise of improved infrastructure so that the area is at the forefront of science and technological advances, and is expected to generate ￡78 billion by 2035.
In addition, Manchester United has been given the go ahead for the redevelopment of its football stadium, Old Trafford. This will include more housing.
This is thought to cost between ￡1billion and ￡1.2billion.
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The Oxford-Cambridge corridor is focused on in the Chancellors plans (Image: Getty)
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Ms Reeves also confirmed funding towards an East-West Rail link between Oxford and Milton Keynes, as well as an upgrade to the road linking the latter to Cambridge.
Moreover, it was announced that the Government would back the acceleration of the development of a new East Coast Mainline station in Tempsford, and the development of new towns along the Oxford-Cambridge corridor.
The Environment Agency has also lifted its objections to a new development around Cambridge, the Chancellor said, which includes 4,500 new homes, in addition to office and laboratory space in the centre of Cambridge.
A 'Growth Commission for Oxford' is to be established, which will review how to accelerate growth. Sir Patrick Vallance will be appointed as the 'Oxford-Cambridge Growth Corridor Champion'.
In the south east, Reeves gave government backing for the ￡9billion Lower Thames Crossing linking Kent and Essex.
Ms Reeves also said that the Government aims to cut spending on disability and ill health benefits, cut immigration, change environmental restrictions on developers and aim to reach a post-Brexit trade deal with India.
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A new Cambridge Cancer Research Hospital will also be prioritised, as well as the construction of more wind power centres, and the release of ￡65million to expand electric vehicle charging.
The answer to requests for development in land around railway stations will now be "yes", the Chancellor added.
Ms Reeves also said that the Government will work with local officials recreate South Yorkshire Airport City, and deliver a new manufacturing job at East Midlands Airport.