U.K. Government Backs Heathrow Expansion in Push for Faster Growth

Business|Britain, in Push for Faster Growth, Backs Major Heathrow Expansion

Rachel Reeves, Britain’s top finance official, on Wednesday laid out plans to revive the country’s flagging economy, including supporting the addition of a third runway at Heathrow Airport, after her first budget rocked business confidence.

An additional runway is “badly needed” to increase trade and investment, Ms. Reeves said in a speech to business executives. The debate about whether to expand the airport, which would be one of the largest infrastructure projects in Europe, has been running for more than two decades. “As our only hub airport, Heathrow is in a unique position and we cannot duck the decision any longer,” she said.

In recent weeks, Ms. Reeves has ratcheted up her efforts to spur growth in the British economy, making numerous announcements and stressing optimism about the country’s outlook.

“Low growth is not our destiny,” she said on Wednesday. “But growth will not come without a fight.”

It's a notable change in pace and tone from when Ms. Reeves became chancellor of the Exchequer last summer and warned of the dire state of the economy. At the time, she introduced measures like planning system reforms and a National Wealth Fund, but those changes will take time to bear fruit.

Now, as companies and investors question whether her budget will generate growth and the global economy rapidly reorients around President Trump’s plans, there is an emphasis on actions that can have more immediate payoffs.

“I will go further and faster to kick-start economic growth,” Ms. Reeves said as she rattled off various reforms, private investments and pledges to increase housing and other infrastructure projects.