LONDON — The U.K. government has officially endorsed the construction of a third runway at London’s Heathrow Airport, as announced by Treasury chief Rachel Reeves. In a speech aimed at reassuring the business sector of the new Labour government’s commitment to economic revitalization, Reeves emphasized that expanding Heathrow’s capacity is critical for the country’s long-term economic growth.

According to Reeves, the additional runway will support the U.K.’s economic potential by attracting more investment, facilitating higher exports, and enhancing the nation’s global connectivity. She noted that the decision was unavoidable and the case for expansion has never been more compelling.

The government is set to invite proposals for the third runway’s construction by the summer, with plans for a comprehensive evaluation of the project’s advantages and disadvantages. Reeves clarified that the government’s primary concern will be ensuring the expansion represents good value for money, with the expectation that any associated transportation costs would be covered by private funding.

However, the announcement is expected to face significant opposition from environmental campaigners who have long opposed the third runway due to concerns over its environmental impact. Activist groups such as Greenpeace and Just Stop Oil are likely to raise objections, as will key figures within the Labour Party, including London Mayor Sadiq Khan. Khan, who has been a long-time critic of the project, reaffirmed his opposition, citing concerns over noise pollution, air quality, and the potential setback to the U.K.’s climate goals. He expressed doubts that adding hundreds of thousands of additional flights annually at Heathrow would align with the nation’s environmental and sustainability objectives, despite advancements in aviation technology.

In response, Reeves assured that the third runway would comply with the U.K.’s legal and environmental standards, as well as its climate commitments. The issue of a third runway at Heathrow has been a topic of debate since 1946, shortly after World War II, but has faced various challenges over the years, including changes in government leadership and legal hurdles. In contrast, other major European airports such as Paris’ Charles de Gaulle and Amsterdam’s Schiphol have expanded with multiple runways, leaving Heathrow at a disadvantage in terms of capacity.

Heathrow’s third runway plan received parliamentary approval back in June 2018, but progress has been delayed by legal challenges and the COVID-19 pandemic. The airport’s CEO, Thomas Woldbye, had previously stated that development would not proceed without clear government support, a condition that Reeves’ speech has now addressed. Woldbye welcomed the government’s stance, describing the move as the kind of bold, responsible vision the U.K. needs to thrive in the 21st century.

Reeves’ support for the third runway was part of a broader speech outlining the Labour government’s strategies for boosting the U.K.’s economic growth, which has been sluggish since the 2008 financial crisis. Reeves discussed several initiatives, including the construction of nine new water reservoirs, plans to develop a Silicon Valley-like technology hub in the Oxford-Cambridge region, the regeneration of areas around Manchester United’s Old Trafford stadium, and a major overhaul of the U.K.’s post-Brexit relationship with the European Union.

Reeves and Prime Minister Keir Starmer, who assumed office in July, face significant pressure to revitalize the economy after the disruptions caused by the pandemic and the ongoing cost-of-living crisis. Critics of the government have accused them of being overly critical of the economy they inherited from the Conservative administration, with some arguing that tax hikes on businesses and negative rhetoric have hindered economic recovery.

While the construction of a third runway may not have an immediate impact on economic growth—since the project could take a decade to complete—Reeves hopes the announcement will reassure businesses and investors that the government is serious about rejuvenating the economy. “We want to take action now to improve economic performance and show businesses that the U.K. is a place where things are happening, where things are being made again,” she stated.

Building a third runway would require the demolition of over 700 homes and the relocation of parts of the M25 motorway into tunnels to accommodate the expansion. Heathrow, which is currently operating at near-full capacity, has long been advocating for a third runway to alleviate congestion. The lack of additional capacity has led to delays, with planes often circling the airport for extended periods before landing.

The business community has strongly supported the construction of a third runway, viewing it as essential for accommodating the growing demand for flights and improving the airport’s ability to handle increasing passenger traffic.