The UK government has formally endorsed Heathrow Airport’s third runway expansion, with chancellor Rachel Reeves confirming that proposals will be invited by the summer.
The announcement, made as part of Reeves’ speech at Siemens Healthineers in Oxfordshire, is framed as a move to boost economic growth, improve international connectivity and enhance air freight capacity.
“I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change,” Reeves said.
She emphasised that recent planning reforms and modernisation of UK airspace would ensure the project’s successful delivery.
The expansion is expected to generate more than 100,000 direct jobs and provide economic benefits beyond London, with research from Frontier Economics suggesting that 60% of the economic uplift would be felt outside the UK capital.
The government also expects it to increase competition, lower airfares and reduce delays for passengers and businesses.
Heathrow is critical to UK logistics and global trade, handling 60% of all UK air freight and serving as the country’s only hub airport.
The government stated that expanding Heathrow is essential to maintaining the UK’s competitiveness against European rivals.
“Around three-quarters of all long-haul flights in the UK go from Heathrow,” said transport secretary Heidi Alexander in a statement to Parliament.
“But the airport is running at nearly full capacity, which is limiting our potential to compete with major European hubs and holding back growth.”
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With air freight accounting for 57% of the UK’s non-EU exports by value in 2023, the government sees Heathrow’s expansion as key to unlocking growth opportunities.
The review of the Airports National Policy Statement (ANPS) will begin once proposals are submitted to ensure compliance with the UK’s legal, environmental and climate obligations.
Alongside expansion plans, the government reaffirmed its commitment to reducing aviation emissions through Sustainable Aviation Fuel (SAF).
Reeves confirmed that the government will invest £63m in 2025-26 into the Advanced Fuels Fund to support SAF production facilities in regions such as Teesside and South Wales.
The UK’s SAF Mandate, which became law this month, requires 2% of aviation fuel supplied in 2025 to be from sustainable sources, rising to 10% by 2030 and 22% by 2040.
“SAF is one of the key measures required to reach net zero emissions from aviation by 2050. It reduces CO2 emissions by around 70% compared to fossil jet fuel,” said Alexander.
To encourage private investment in the SAF industry, the government has also published its response to a Revenue Certainty Mechanism (RCM) consultation, which will provide long-term financial stability for SAF producers.
The next steps on the RCM will be outlined shortly.
Reeves concluded by reaffirming the government’s commitment to balancing economic growth with sustainability.
“Taken together, our SAF commitments will support thousands of jobs, bring down transport emissions, and make the UK a clean energy superpower,” she said.
