Heathrow’s third runway could be built and operating in a decade’s time, Chancellor Rachel Reeves has said.
The extra runway at Heathrow was one of a number of infrastructure projects announced by the chancellor on Wednesday as part of the government’s plans to boost economic growth.
Speaking to BBC Breakfast, Reeves said she wanted to see “spades in the ground” in the current Parliament and planes to start using the runway by 2035.
She added that planned reforms to the planning system would make major infrastructure projects such as Heathrow’s easier to build.
Some have argued that a third runway at Heathrow is unlikely to become a reality for many years.
The project still has to go through a formal planning process, and the airport’s expansion is highly controversial – facing opposition from environmental groups, local authorities and nearby residents.
But Reeves told Breakfast: “I think we can get that done in a decade.”
“I say that because we’re not just announcing that we back it, we are changing the way that our planning system works to make it easier to deliver projects like the third runway at Heathrow.”
Separately, a leading economic think tank has warned that higher borrowing costs for the government may mean tax rises or spending cuts if it wants to stick to its own self-imposed rules.
According to a report from the Resolution Foundation, the government is spending £7bn a year more paying interest on its debt than it was at the time of the Budget.
As a result, the think tank said higher tax or cuts “may be needed” if the government wants to keep its promise not to spend more day-to-day than it brings in through tax.
A Treasury spokesperson told the BBC its commitment to its fiscal rules is “non-negotiable”.
Government borrowing costs began rising after the Budget last Autumn.
The Resolution Foundation said the rise has been “primarily driven by international factors”, with US and European government debt also rising.
Other economists have said higher borrowing costs are at least partly a reaction to sluggish growth in the UK economy.
The increase has been much lower than following the 2022 mini-Budget, and borrowing levels have fallen since hitting their highest levels in several years earlier this month.
However, the Resolution Foundation said the risk of the government of breaking its own fiscal rules “remains on a knife edge” because borrowing costs remain higher than in the Autumn.
