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Business leaders in the Thames Valley have welcomed this morning's announcement by the government that a third runway will be built at Heathrow Airport.

Thames Valley business leaders welcome Heathrow announcement

Business leaders in the Thames Valley have welcomed this morning’s announcement by the government that a third runway will be built at Heathrow Airport.

Chancellor Rachel Reeves and transport secretary – and Swindon South MP – Heidi Alexander hailed the announcement as a ‘lift-off for growth’.

The move was one of a package of measures announced to an audience of business chiefs at Siemens in North Oxfordshire this morning (Wednesday).

The government will not build the runway at Britain’s busiest and only hub airport, but pledged to support the expansion.

It said the plan could create over 100,000 direct jobs, boost a better-connected British economy by billions, and lead to cheaper fares and fewer delays for travellers.

“I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change,” said the Chancellor.

“And now the case is stronger than ever because our reforms to the economy – like speeding up our planning system, and our strengthened plans to modernise UK airspace – mean the delivery of this project is set up for success.

“So I can confirm today that this Government supports a third runway at Heathrow and is inviting proposals to be brought forward by the summer.”

Later, Heidi Alexander told the House of Commons that air connectivity plays “a vital role in supporting economic growth across the UK, contributing £14 billion to GDP in 2023 and over 140,000 jobs across the UK in 2022.”

She added: “However, capacity constraints are hindering the country’s ability to reap the growth benefits of aviation.

“There is a particular capacity challenge in the south east of England. Heathrow Airport, the largest airport in Europe by passenger traffic, the most internationally connected airport in the world and the UK’s only hub airport, plays a critical role in enabling international connectivity for both passengers and freight.

“This supports productivity and economic growth. Around 75 per cent of UK long haul flights go from Heathrow and 60 per cent of UK air freight goes through Heathrow.

“But Heathrow is running at nearly full capacity, which is limiting our potential to compete with major European hubs and holding back growth.

“Tackling capacity constraints at Heathrow Airport could unlock growth benefits that a world-class aviation sector can provide.

“That’s why the government supports and is inviting proposals for a third runway at Heathrow, to be brought forward by the summer.”

The news was welcomed by business leaders.

Paul Britton, chief executive of Thames Valley Chamber of Commerce – which has long advocated for expanding capacity at Heathrow –  said: “This will provide a much needed boost to the prospects of our Thames Valley business community and resilience through new critical infrastructure.

“These latest announcements point to Government hearing the Chambers call that growth in the Thames Valley and wider South East needs to be unlocked to boost the prospects of the whole country.

“The supply chains across Berkshire, Buckinghamshire, Oxfordshire and Swindon run far and wide across business communities throughout the UK, and centres of excellence for our key sectors here can play a key part in the Governments wider growth agenda and for generations to come.

“The argument for a third runway has been well rehearsed — thousands of new jobs, market access, competitiveness for the UK.

“Building capacity at Heathrow will create better connectivity to global markets for local businesses, but also for communities across the whole of the UK through regional airports.

“As the largest port in the UK, exporters will also benefit from greater reach into new markets. The UK’s inward investment prospectus needs this boost, and the exciting decarbonisation and sustainable aviation fuel solutions in development will be put into action.

“The debate will run on to reach planning approval, but with the environmental considerations, this needs to happen at pace and supported by better rail links from the West this will be transformative for the region.”

The CBI also welcomed the announcement. CEO Rain Newton-Smith said: “This positive leadership and a clear vision to kickstart the economy and boost productivity is welcome.

“A relentless focus on growth means making some bold moves, accepting trade-offs and taking risks. Leaders in boardrooms do that every day.

“Business understands those pressures and is ready to partner with, and invest alongside, a government that is brave and optimistic about the UK’s potential.”

And the Federation for Small Businesses echoed the sentiment. The organisation’s policy chair, Tina McKenzie, said: “Today’s rallying cry for Government to choose growth is exactly what the economy needs.

“It sends a strong, confident message that from now on growth comes first, and any barriers to that will be erased.

“This decision on Heathrow is totemic, and faster action to unblock decisions on infrastructure projects is entirely right.

“Small firms want to see infrastructure upgrades and to enjoy the benefits of better connectivity. Increased exports, tourism, and more growth-oriented regulations will help to unlock success.”

Image by Quintin Gellar at Pexels

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