Third runway at Heathrow Airport would drive growth, Healey says

An important development from the financial markets: Third runway at Heathrow Airport would drive growth, Healey saysImage caption, British Airways planes lined up at Terminal 5 at Heathrow AirportByFaisal Islam, Economics editor and Tabby WilsonPublished17 October 2026Chancellor John Healey has said building a third runway at Heathrow Airport has "always been a case for growth" after Prime Minister Andy Burnham refused to say if he backed the expansion. Healey said airport expansion, including at Heathrow, had been "a big part of jobs and growth" in recent decades, speaking at the International Monetary Fund (IMF) in Bangkok. His comments came after Prime Minister Andy Burnham was more sceptical, telling the last month it was "a matter for London and Londoners".

Healey's predecessor Rachel Reeves had put the airport's expansion at the centrepiece of an argument that Britain was open for business. Earlier this week Heathrow's chief executive Thomas Woldbye warned that not building a third runway at the UK's busiest airport would be a "huge missed opportunity". Healey told reporters: "The case for a third runway at Heathrow has always been a case for growth.

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"He added: "The formal position now is that the consultation is closed, led by the Transport Department. "We're reviewing those, and then further decisions and announcements will follow. "The third runway been debated for decades, with the project facing opposition from residents, politicians and climate campaigners.

Last year, Reeves announced the government-backed expansion, saying "a third runway is badly needed", and the government could not "duck the decision any longer". Asked about the project in September, Burnham suggested it was an argument for London to decide. "I think we ought to hear the voice of people there first.

It's not right for me to just jump straight in on the back of the consultation," he added. The Department for Transport has said it is "considering the appropriate next steps" following the public consultation on its National Policy Statement, which provides the basis for deciding whether to grant a new runway at Heathrow. The airport's consortium of owners has said they need explicit backing from Burnham before the end of the year in order to proceed with the project.

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Speaking to Radio 4's Today programme earlier this week, Woldbye said it would be "good to know" the government's position on the project. He said he hoped the prime minister would "come along" with the project, adding that a third runway was "not just for Londoners". "Benefits will be felt all over the country because our supply chain reaches all the way from the north all the way to the south of the UK," Woldbye said.

Heathrow serves more than 80 million travellers a year with its four passenger terminals and two runways. The number of flights, currently capped at 480,000 a year, could go up to 720,000 - or nearly 2,000 a day on average, if a third runway is built.

Financial markets are tracking the development closely as investors assess the likely impact.