UK finance minister backs expansion of London's Heathrow Airport to boost struggling economy
U.K. Finance Minister Rachel Reeves on Wednesday unveiled plans to deliver a shot in the arm for the country's ailing economy, signaling she backs the long-delayed expansion of one of the world's busiest airports.
In a major growth speech in Oxfordshire, Reeves said that a third runway at London's Heathrow Airport was "badly needed," adding it would boost investment, support economic expansion and potentially create over 100,000 jobs.
Citing research from the consultancy Frontier Economics, Reeves suggested a third runway at Heathrow could increase gross domestic product by 0.43% by 2050, with much of that boost going to areas outside of London and the southeast of the country.
Her comments came amid a series of project announcements to reform the U.K.'s planning system, including the redevelopment of Manchester United's soccer stadium in north England and investment in the Oxford-Cambridge "growth corridor."
Reeves said "low growth is not our destiny. But growth will not come without a fight." She promised to go "further and faster" to fulfil what she's called her "number one priority" of kickstarting the U.K.'s economy.
The ruling center-left Labour Party has repeatedly pledged to prioritize economic growth, with Reeves last week telling reporters at the World Economic Forum in Davos, Switzerland, that this mission is more important to the government than its net-zero emissions target.
Reeves on Wednesday described net zero as the "industrial opportunity of the 21st century," saying there is no trade off between economic growth and the energy transition.
Supporters of a third runway at Heathrow say it would better connect the U.K. to long-haul destinations, boost trade, jobs and, ultimately, economic growth.
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