Heathrow and Gatwick airports may expand under plans
Getty Images A plane takes off from Heathrow AirportGetty Images

Airports across the UK could be expanded under government development plans, including Heathrow's controversial third runway.

The Treasury is considering whether to support a third runway at Heathrow, approve a second runway at Gatwick and increase capacity at Luton Airport.

Chancellor Rachel Reeves said she "will not comment on leaks" when asked about the expansion plans in the House of Commons on Tuesday.

The new Labor government has made economic growth a key part of its message, with Reeves promising to "go further, faster".

The BBC understands Reeves is likely to make an announcement about the airport in a speech next week.

Asked on Tuesday if he supported building a third runway at Heathrow, Reeves said: "I would say this government is absolutely committed to growing our economy and making this a great place for businesses to invest and Great place to trade.”

Reeves will arrive in Davos later on Tuesday to attend the World Economic Forum, where she will meet business leaders and investors from around the world and said Britain was "rising".

A government spokesman told the BBC it "does not comment on speculation" but that the government is "determined to keep our economy moving and secure the long-term future of UK aviation".

They added: “All expansion proposals must demonstrate that they contribute to economic growth, which is at the heart of our plan for change, while still complying with existing environmental obligations.”

The push for growth has become more urgent after international markets cast doubt on the credibility of Britain's economic plans. UK borrowing costs soar Sterling fell.

Heathrow Airport boss Thomas Woldbye, december says His company needs "clear guidance" from the new government on plans to expand the airport and build a third runway by the end of 2025.

Decision deadline

The government is due to make a decision on Gatwick Airport's expansion plans by February 27.

Under previously announced plans, Gatwick hopes to increase its passenger capacity to 75 million passengers a year. The previous pre-COVID-19 record was 47 million.

If plans go ahead, Gatwick aims to complete the project by the end of the decade.

Meanwhile, decisions on the expansion of Luton Airport, including plans for a new terminal, are due to be made by April 3.

Plans to expand the airport were delayed by the previous Conservative government due to the environmental impact and opposition to noise from communities adjacent to the airport.

Heathrow expansion plans have divided Labor in the past, with Prime Minister Keir Starmer voting against building a third runway in 2018 and Reeves supporting it.

Shai Vaughn Havilland, director general of the British Chambers of Commerce, said any airport expansion plans would be "vital" to the UK's business growth if they went ahead.

She added that all three projects would "help boost trade" at a time when costs are rising for many businesses.

She said: “These airport proposals must form a key part of the UK’s long-term infrastructure strategy to help businesses grow, trade and prosper.”