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Heathrow Third Runway: Healey Backs Growth Case as Burnham Wavers

Chancellor John Healey has voiced support for a third runway at Heathrow, even as Prime Minister Andy Burnham remains publicly uncommitted.

Chancellor John Healey has publicly backed the growth case for the Heathrow third runway, saying airports have been "a big part of jobs and growth" in recent decades, even as Prime Minister Andy Burnham continues to duck the question of whether the project should proceed.

Heathrow third runway: Gatwick Airport, south of London, is Britains' second busiest airport, after Heathrow. Until 2017 it was also
Photo: Mike McBey (CC BY 2.0)

The remarks came as the long-running debate over the £33bn infrastructure project reached a fresh flashpoint, with Heathrow's chief executive warning that international shareholders may not wait indefinitely for a political green light.

What Healey Said

Healey made his comments while attending International Monetary Fund annual meetings in Bangkok, according to The Guardian. Asked for his views on the project, he said the government would study responses to a public consultation that recently closed.

He was markedly more positive than Burnham, however. "I think in recent decades, and this is true in Heathrow and airports right across the UK, that they have been a big part of jobs and growth. And the case for a third runway at Heathrow has always been a case for growth," he said.

Healey voted in favour of the third runway when the question was put to the House of Commons in 2018, The Guardian reports.

Where Burnham Stands

Since arriving in Downing Street in July, Burnham has declined to commit to the project. He has suggested the runway should be "a matter for London and Londoners," according to The Guardian.

A recent Sunday Times report, cited by The Guardian, suggested the prime minister told Transport Secretary Heidi Alexander that he was "unconvinced" by arguments for the scheme. That puts him at odds not only with Healey but with the direction set by his predecessor.

Former Chancellor Rachel Reeves had placed approval of the runway at the heart of her growth agenda, saying it would "make Britain the world's best-connected place to do business," The Guardian notes.

The Shareholder Warning

Heathrow's chief executive, Thomas Woldbye, has sharpened the pressure on the government. The Guardian reports that he warned investors could reassess their backing for the project without the prime minister's support.

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"Our shareholders would like to do this," Woldbye said. "They do think that things are taking a long time, and so far they have decided to be OK with that. But of course we cannot wait for ever."

Heathrow's owners include Qatar's investment authority, the French private equity firm Ardian, Saudi Arabia's Public Investment Fund and Singapore's sovereign wealth fund, GIC. They are expected to decide in the coming months whether to apply for formal planning permission, according to The Guardian.

The Economic Case for the Heathrow Third Runway

Heathrow has stressed the economic benefits of expansion to ministers. The Financial Times reports that the airport has cited the creation of more than 100,000 new jobs and a boost to GDP as central arguments.

Healey has also insisted that economic growth is his and Burnham's "number one mission" in government, making his broadly supportive stance on expansion consistent with that stated priority, as The Guardian notes.

The chancellor was praised by the IMF this week for taking action to cut the UK's deficit. The IMF's managing director, Kristalina Georgieva, urged him to "stay the course" ahead of his 28 October budget, The Guardian reports.

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What the Split Means for the Project

A public split between the chancellor and the prime minister on a project of this scale is notable. Healey's comments are, as the Financial Times observes, the latest sign that he is more supportive of the runway than Burnham.

For Heathrow and its international owners, the concern is not just policy direction but timing. A formal planning application cannot be filed indefinitely without clarity from the highest level of government, and the window for a decision is narrowing.

The Bottom Line

The Heathrow third runway debate has reached a moment of real political tension. Healey is clearly more willing to champion the growth case than the prime minister he serves under, and shareholders are watching how long that ambiguity holds.

The coming months, when Heathrow's owners must decide on a planning application, will test whether Burnham continues to stand apart or is drawn into a clearer position.

Continue to follow The Aviation Hub for more analysis and insight.

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