Report that Rachel Reeves cited as evidence a third Heathrow runway would boost the economy ‘was commissioned by the airport itself’_Nhy
A report Rachel Reeves cited as evidence in favour of a third runway at Heathrow was allegedly commissioned by the airport itself.
In a speech in Oxford this week, the Chancellor claimed that a new runway at Heathrow could create up to 100,000 new jobs.
She also said the development would connect Britain to ’emerging markets all over the world, opening up new opportunities for growth’.
Ms Reeves cited a recent study conducted by Frontier Economics that suggested a new runway could increase GDP by 0.43 per cent by 2050.
Moreover, she claimed that a whopping 60 per cent of that additional income would go to areas outside London and the south-east.
However, it has since been revealed that this report was not entirely independent and was instead commissioned by Heathrow Airport, The Observer reported.
It comes as the Chancellor was accused this week of throwing her support behind a third runway in a ‘panicked’ attempt to ‘distract’ from Britain’s flagging economy.
The estimated cost of a third runway was £14billion in 2014 and is likely to be much higher now.
A report Rachel Reeves cited as evidence in favour of a third runway at Heathrow was commissioned by the airport itself, according to reports
There are huge questions over the cost and complexities of constructing another runway at the west London site
An artist’s impression of how the Heathrow site could look after expansion
Ms Reeves has also been forced to reject industry warnings that a third runway is a ‘dead cat’ because it will take 25 years to complete.
Eight of those who attend Cabinet – including PM Sir Keir Starmer, Environment Secretary Steve Reed and Energy Secretary Ed Miliband – have also previously opposed the plans.
Mr Miliband this week warned any expansion of Heathrow would be blocked if it can’t be ‘justified within carbon budgets’.
A carbon budget places a restriction on the total amount of greenhouse gases the UK can emit over a five-year period.
The Climate Change Committee will soon advise on the seventh version of the UK’s carbon budget, which will set a legal limit for 2038 to 2042.
According to the website Carbon Brief, a forest twice the size of Greater London would need to be planted in the UK to cancel out the extra emissions from the expansion of Heathrow, Gatwick and Luton airports.
New runaways at these airports surrounding the capital would result in cumulative emissions of around 92milllion tonnes of extra carbon dioxide equivalent (CO2e) by 2050, their analysis said.
They added that offsetting these emissions would require more than 300,000 hectares of trees to be planted within just a few years.
Ms Reeves cited a recent study conducted by Frontier Economics that a new runway could increase GDP by 0.43 per cent by 2050 (file image)
Ed Miliband (pictured at John Prescott’s funeral) warned any expansion of Heathrow would be blocked if it can’t be ‘justified within carbon budgets’
This equates to all the trees planted in the UK since 2000.
Labour donor Dale Vince last night urged Mr Miliband to ‘stand strong’ against Heathrow expansion.
The environmental campaigner told LBC radio: ‘If Gatwick, Heathrow and Luton Airport expansions go ahead, we will wipe out all of the carbon savings from the Government’s 2030 100 per cent green energy plan.
‘They’ll just be wiped out, and we can’t afford to do that. It’s just crazy, and this is in the name of growth, but it will be a short term, illusory version of growth.’
Ms Reeves, however, has continued to push ahead with the plans.
‘We’re not just announcing that we back it, we’re changing our planning system… It doesn’t have to take decades, we can crack on,’ she told BBC Breakfast.
Asked about Sir Sadiq’s objections, Ms Reeves said: ‘I have huge respect for Sadiq, but on this I know that sustainable aviation and economic growth can, and do, go hand-in-hand.
‘The way that we fly has changed hugely in recent years, engines have become so much more efficient, reducing carbon emissions and also sustainable aviation fuel is changing the way that we fly with a mandate that came in at the beginning of this year.’
Sir Sadiq said he ‘remains opposed’ due to the ‘severe impact it will have on noise, air pollution and meeting our climate change targets’
Pressed on whether Mr Miliband was fully behind the plans, Ms Reeves replied: ‘Yes, we are all united as a Cabinet backing these plans.
‘We know that we have to grow our economy, we can’t keep saying no to big infrastructure projects.’
The Government wants proposals for a third runway to be produced by the summer, which will then face a full assessment through the airport national policy statement to ensure it is in line with legal, environmental and climate objectives.
Official figures have shown little or no economic growth since Labour took office in July, with Ms Reeves’ Budget imposing national insurance hikes on businesses, hitting confidence and potentially costing 50,000 jobs.
But Ms Reeves tried to give an upbeat assessment of the UK’s prospects, arguing that the Government had ‘begun to turn things around’.
‘We have fundamental strengths in our history, in our language and in our legal system to compete in a global economy, but for too long that potential has been held back.
‘For too long we have accepted low expectations and accepted decline,’ she said.
‘We no longer have to do that. We can do so much better.
‘Low growth is not our destiny, but growth will not come without a fight, without a government willing to take the right decisions now to change our country’s future for the better.’
She highlighted the long-delayed Heathrow expansion project as an indication of the problems that had beset the UK economy.
‘For international investors, persistent delays have cast doubt about our seriousness towards improving our economic prospects,’ she said.
