The Labour government aims to stimulate growth to improve living standards and address challenges from the pandemic and cost-of-living crisis.

Reeves sought to instill optimism in the economy, which has stagnated, and defended her recent Budget decisions, stating they were necessary for stability despite claims of them being 'job destroying'.

Reeves' plans mark a shift from previous government inaction that restricted the growth of technological and economic assets in the UK.

Reeves emphasized that the government's approval for expansion plans will depend on compliance with environmental and climate standards.

On January 29, 2025, U.K. Treasury chief Rachel Reeves announced government support for a third runway at Heathrow Airport, aiming to enhance the country's economic growth potential.

Heathrow currently operates at its maximum capacity of 480,000 flights per year, having recorded a record 83.9 million passengers last year.

Reeves emphasized that expanding Heathrow would improve Britain's global business connectivity, which has faced delays due to environmental concerns.

Opposition to the runway expansion has been significant, particularly from environmental campaigners and some Labour Party members, including London Mayor Sadiq Khan, who raised concerns over noise, air pollution, and climate change targets.

Transport campaigner Jenny Bates from Friends of the Earth stated that the project contradicts the Prime Minister's climate leadership promises.

The expansion faced legal setbacks in February 2020 when a court ruled that the government's approval ignored the UK's obligations under the Paris Agreement.

The initial step for the project involves a thorough evaluation of the Airports National Policy Statement to assess compliance with environmental regulations and legality.

If the government backs the expansion, the formal planning process could take up to two years, followed by another six to seven years for construction.