Government backs Heathrow expansion to kickstart economic growth: Businesses react to the Chancellor's speech

On the overall package

Clare Barclay, Chair, the Industrial Strategy Council said:

“The Chancellor's speech confirms what global companies already recognise - that the UK is one of the most connected places in the world to do business, and the best place to go for growth.

 “Our modern Industrial Strategy will prioritise key growth sectors such as life sciences, artificial intelligence and advanced manufacturing; and the Industrial Strategy Council will work with business to develop that plan together so we can deliver on the government's growth ambitions.”

Tina McKenzie, Policy Chair, the Federation of Small Business (FSB) said:

“To get the growth the economy needs, you need to say yes to projects big and small. For far too long small firms have seen barriers to growth and excuses for inaction and delay - onerous planning requirements, regulation unsuited to small business needs and ultimately infrastructure that doesn't work. The positive energy in today's speech is much-needed and has our backing."

Terry Phillips, Regional Organiser, GMB said:

"The Heathrow third runway expansion has finally been cleared for take-off. We welcome the Government's decision and the thousands of good, unionised jobs and apprenticeships the project will create.The project represents a huge boost for construction skills in this country, which will be vital for future infrastructure projects.

"A new runway will enable the UK to capitalise on Heathrow's importance as the world's most connected airport, generating billions for the economy and demonstrating the Government's commitment to delivering growth.

"Let's get on and build it, without further delay.”

Suzannah Nichol OBE, Chief Executive, Build UK, said:

“The commitment to significant investment in our country's infrastructure puts construction at the heart of kickstarting economic growth and we look forward to the Government's 10-year infrastructure strategy, which will set out the long-term pipeline of work we have called for. By streamlining the process of consent and construction, we have a huge opportunity to deliver the homes and infrastructure the country needs and offer great career opportunities which will help us go further and faster.”

Jon Stott, Group Managing Director, Ardent said:

“We welcome Rachel Reeves' statement and it is incredibly positive to have such strong support for major projects so early in this Government's term. Political instability can so often derail projects, but to get this backing on Heathrow, Lower Thames Crossing and East West Rail – projects we have been very close to – within six months of a new Government gives them the best possible chance of being delivered.  LTC should have spades in the ground this year, whilst EWR Phase 3 should be consented during this Parliament, whilst it's likely that the Heathrow proposals will be sufficiently far advanced, and the application in or through Examination by the time of the next Election, that it feels this time around we will finally have lift-off, and a major boost for the UK economy.”

Neil Jefferson, Chief Executive Officer, the Home Builders federation said:

“The Oxford Cambridge corridor is a key area for housing delivery where demand is high but delivery has been difficult. We have been long urging central Government to address the blocks on housing and the Environment  Agency decision is welcome. Delivering desperately needed homes can deliver social, economic and environmental benefits and will lead to significant investment in infrastructure across a key area for growth.”

Henri Murison, Chief Executive, Northern Powerhouse Partnership said:

“Growth in the Golden Triangle is necessary and important to the UK, and we need all the UK to thrive. High productivity places having been held back helps no one – including us in the North or in the Midlands. In the North, closer working between mayoral authorities across both the Office for Investment and National Wealth Fund are to be welcomed. We have a huge opportunity to raise productivity long term across the Northern cities and their surrounding regions, and this is dependent on major infrastructure, completing Trans Pennine Route Upgrade and new lines as part of Northern Powerhouse Rail.  The 10 year infrastructure strategy to secure this to be delivered by the National Infrastructure and Service Transformation Authority (NISTA), alongside the Green Book reform called for by Mayor Steve Rotherham, will come later this year.”

On Heathrow

 Kenton Jarvis, Chief Executive Officer, easyJet, said:

“I welcome the Government's pro-growth agenda and their recognition of the importance of aviation and the crucial role it plays as an enabler of economic growth. As an island nation, this industry provides much-needed connectivity as well as creating many skilled jobs which contribute to the wider prosperity of the country.  

 “Expansion at Heathrow will provide consumer and economic benefits and represents a unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares for consumers.”

Tim Alderslade, Chief Executive Office, Airlines UK said: 

“We welcome the strong recognition from the Chancellor of aviation's unique role enabling economic growth in all parts of the UK. Airlines support more airport capacity to grow the economy and foster trade but expansion must be affordable, improve operational resilience for passengers and freight, and be compatible with our net zero commitments. 

 “Airlines are making progress towards net zero and the industry now needs Government help to align any additional capacity with further policy support to incentivise the production of SAF and deliver urgent modernisation of airspace as quickly as possible.” 

Karen Dee, Chief Executive, AirportsUK, said:

“Airports make an enormous contribution to the economy, connecting businesses, facilitating imports and exports, bringing in investment and creating jobs.

“Expanding capacity will support growth in all these areas and will not come at the expense of our sustainability goals”.

“New, cleaner fuels, more efficient and quieter aircraft, decarbonised airport operations and modernisation of our airspace will all ensure aviation is able to meet its obligations, alongside growth.”

“The chancellor is right to get behind airports as key engines for economic growth and to prioritise policies that can help deliver additional global connectivity.

“Sectors as diverse as transport equipment, pharmaceuticals, the creative industries and clothing rely on good air links, to the tune of billions of pounds of value.

“Growing connectivity into global markets will support these sectors and countless others, creating jobs, bringing new customers to our goods and services, and opening new opportunities for investment.”

“Aviation's contributions are also shared across the entire country, with all regions of the UK benefitting through increased trade opportunities brought about by better connectivity.

“Supporting airports is to support local businesses, create jobs in our towns and cities, and help hard working, ordinary people of the UK go on holiday and visit family every year.”

On pensions reform

 Abdallah Nauphal, Chief Executive Officer, Insight Investment said:

“The government's plan to allow defined benefit pension schemes to share their surplus assets is very welcome. Companies with schemes in surplus can keep their employees' retirement income secure, while unlocking significant potential for improved benefits for members and additional finance for companies. Overall, this could release up to £100 billion to drive growth across the wider UK economy. 

“With effective guardrails in place, the excess capital in defined benefit schemes could act as a bridge to the longer-term benefits that would be unlocked by reforms to LGPS and defined contribution pensions. It would also mean defined benefit schemes could continue in their role as natural long-term investors in the gilt market, which underpins the taxes we pay, the cost of doing business in the UK and the cost of mortgages.”