What building projects did Rachel Reeves back in her 'pro-growth' speech?

29 January 2025, 12:53

Chancellor Rachel Reeves has laid out fresh plans for a host of infrastructure projects meant to grow the economy in a speech on Wednesday.

Chancellor Rachel Reeves revealed her plans for economic growth with a wide-ranging speech that confirmed her support for a host of major infrastructure projects.

Here's our summary of the most important announcements from the Chancellor's speech:

A third runway for Heathrow

Rachel Reeves has given her support for a third runway at Heathrow Airport.

She said the west London airport's expansion is "badly needed" because "for decades its growth has been constrained".

Heathrow's plan to build a third runway received parliamentary approval in June 2018, but has been delayed by legal challenges and the coronavirus pandemic.

The airport needs to secure approval for a Development Consent Order to go ahead with the project.

Chief executive Thomas Woldbye previously said he would not continue developing the scheme without the Government confirming it wants expansion.

Reeves' support doesn't necessarily mean clear skies ahead for the embattled expansion.

Mayor of London Sadiq Khan said he remains "opposed" to Heathrow expansion because of its "severe impact". He even told reporters that he's willing to challenge the expansion through the courts.

She also supported a reopened airport in South Yorkshire, saying: "We will work with Doncaster Council and the Mayor of South Yorkshire Oliver Coppard to support their efforts to recreate South Yorkshire airport city as a thriving regional airport"

Sunny skies for plans at Gatwick and Luton airports

The chancellor also voiced support for infrastructure schemes at Gatwick and Luton airports that will boost capacity for both travel hubs.

Gatwick airport in West Sussex wants to bring its second, emergency runway into routine use for take-offs by smaller aircraft, providing a major boost in capacity and resilience.

The project would involve widening the runway by 12 metres and could be completed by the end of the decade, says the airport.

Luton airport in Bedfordshire wants the limit on its annual number of passengers to be raised from 18 million to 32 million.

This would involve large construction projects to upgrade the existing terminal and build a second one. The scheme would not require a new runway or flight paths.

Transport Secretary Heidi Alexander is expected to decide whether to approve the Gatwick scheme by February 27, and the Luton scheme by April 3.

'Europe's Silicon Valley'

Ms Reeves also put her support behind East West rail, a plan to boost railways links between Oxford and Cambridge with new and upgraded lines.

The move is part of her efforts to create "Europe's Silicon Valley" in the 66 miles between the two cities and add £78 billion to the UK's economy by 2035.

In her speech, Ms Reeves said the lack of fast rail travel was a major blocker for the area that has "huge potential" for the UK's growth prospects.

The schemes first stage with initial services from Oxford to Bletchley and Milton Keynes scheduled to begin this year.

The other two stages involve services being extended from Oxford to Bedford, and then from Oxford to Cambridge via Bedford and Bletchley. They will need government funding and approval to go ahead.

A new railway station at Tempsford, Bedfordshire, would provide connections between the East Coast Main Line and East West Rail.

Oxford will also get a new growth commission aimed at helping boost the city's economy, following a similar initiative in Cambridge.

Old Trafford gets a facelift

Rachel Reeves is on board with Manchester United's plans to create a new venue by either redeveloping its current stadium to increase capacity to 87,000, or build a new ground which could hold 100,000 fans.

The club has said it will decide on its preferred option "ahead of the summer".

The project would also involve a major regeneration of the area around Old Trafford, with residential, transport and entertainment developments.

Nine new reservoirs

New reservoirs will be built near Abingdon in Oxfordshire and in the Fens near Cambridge to quash fears of a water shortage as new homes are built.

They will be among nine new reservoirs built as the Government has agreed for water companies to invest £7.9 billion to improve infrastructure.

Building the UK's longest road tunnel

The Chancellor also voiced support for the Lower Thames Crossing, a new £9 billion road crossing between Kent and Essex.

It would connect the A2 and M2 in Kent to the A13 and M25 in Essex via a 2.6-mile long tunnel under the Thames, which would be the UK's longest road tunnel.

Developers hope the new tunnel will reduce congestion on the Dartford Crossing. The Government will decide whether to allow the project by May 23.

A new cancer research hospital

The government will prioritise a new Cambridge cancer research hospital as part of the new hospitals programme.

Started by the Tories, the programme has had a wobbly start, with government advisers telling Labour that the goal to build 40 new NHS hospitals by 2030 "appears to be unachievable."

The hospital will bring together Cambridge University, Addenbrookes Hospital and Cancer Research UK.