The Government has been warned that Britain risks losing investment and economic growth by delaying a decision on Heathrow expansion, as uncertainty over a proposed third runway intensifies pressure on ministers to commit to the country’s biggest airport.
Transport Secretary Heidi Alexander told business leaders at the AirportsUK annual conference that expansion could unlock jobs, investment and growth across the country, but acknowledged that ministers still had to make a final decision following a consultation.
“Britain loses by standing still,” she said, adding that competitiveness was guiding the Government’s approach to Heathrow.
“A third runway has the potential to create new opportunities, jobs, investment and growth in every corner of this country.”
Her intervention comes after Heathrow chief executive Thomas Woldbye publicly urged the Prime Minister to clarify the Government’s position, warning that investment could be lost overseas without a firm commitment to the project.
“It would be good to know where Government is on this,” Woldbye said, calling for greater certainty over the airport’s expansion plans.
The dispute presents ministers with a difficult economic and environmental balancing act. Heathrow’s supporters argue that additional capacity would strengthen Britain’s international connectivity and help attract business, while the Government insists that any expansion must satisfy requirements on climate change, noise and air quality.
Alexander rejected the suggestion that economic growth and decarbonisation were competing priorities.
“You’ll never hear me peddling false trade-offs” such as “going for growth means ditching decarbonisation”, she told delegates.
The political uncertainty marks a shift from the previous administration. Before entering Downing Street, Andy Burnham’s predecessor, Sir Keir Starmer, and then-chancellor Rachel Reeves had backed the construction of a third runway at the UK’s busiest airport.
Burnham has declined to confirm his support, arguing that the proposal must be considered through consultation and the subsequent planning process.
The Prime Minister’s official spokesman said economic growth was “obviously very important” and acknowledged the potential economic boost from expansion. But he stressed that the project was privately financed and had to follow the proper procedures.
“Any final decisions will have to meet the tests we’ve set on climate, noise, and air quality,” he said, adding that there was currently no live planning application for a third runway.
The immediate question is whether ministers can provide the certainty sought by investors without prejudging the environmental and planning assessments.
For Heathrow, the stakes extend beyond airport capacity: prolonged indecision risks weakening confidence in Britain’s willingness to deliver major infrastructure. For the Government, expansion has become a test of whether its growth ambitions can be reconciled with its environmental commitments.
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