The Chancellor welcomed the expansion of Heathrow Airport as she unveiled Labour’s plans for promoting economic growth. Supporting, in principle, a planning application for a third runway at Heathrow marks the first step in the process.

Reeves invited proposals to be brought forward by the summer to “ensure that a third runway is delivered in line with [the] legal, environmental and climate objectives.”

The Chancellor also emphasised plans to invest in connecting “the Oxford-Cambridge growth corridor”, with the aim of creating “Europe’s Silicon Valley,” which is expected to add billions to the UK economy. 

Additionally, Reeves announced an agreement with water companies to unlock “£7.9 billion of investments in the next five years” to improve water infrastructure, including the construction of nine new reservoirs. 

The government will also back the redevelopment of the Old Trafford football stadium in Manchester. Furthermore, plans to review the “Green Book,” a guideline used to evaluate significant investment projects, will be announced. The review aims to support public investment decisions across the country, including areas outside London and the southeast. “This means investment in all regions is given a fair hearing by the Treasury,” she said.

A £100 million bat tunnel installed on the HS2 rail project has prompted the government to assess why delivering major infrastructure is becoming “far too expensive and far too slow”. Reeves says that the government will be reducing the environmental requirements placed on developers so that they can focus on building and completing projects.

The government states that the Planning and Infrastructure Bill is a priority and will be introduced in the spring, emphasising their commitment to the “smooth, speedy, and rapid delivery” of this bill.

Commenting on the speech, director of operations for the Civil Engineering Contractors Association (CECA) Marie-Claude Hemming, said, “The Government should be applauded in its commitment to airport expansion, which is an issue that has been kicked into the long grass by successive administrations, but which is vital to the UK’s future as a global trading nation.

“Industry is keenly awaiting the publication of this Spring’s Planning and Infrastructure Bill, but the Chancellor’s commitment to speeding up planning and removing blockers to growth, such as excessive use of judicial review, are positive signs that the UK Government has listened to industry, and will act accordingly.”

Justin Sullivan, president of RICS, added, “Rachel Reeves is correcting the course of Labour’s growth journey. The tough decisions have been made; now it’s time to press ahead with much-needed reforms.

“Since the Budget confidence amongst companies in the built environment has tailed off spelling bad news for housing and infrastructure delivery – particularly among SMEs, the backbone of construction supply chains, whose ability to borrow, grow and deliver disproportionately relies on sentiment across the economy. These have combined to undermine the positive impact of changes to the National Planning Policy Framework, announced in December. But Rachel Reeves’ speech today will help reset the mood.

“While Reeves is focusing on the biggest, most newsworthy projects – like the East-West Rail link – her department must work with MHCLG and local councils to realise the strategic benefit of improving more local, smaller scale infrastructure projects – like local road networks, water utilities, and public transport links. Part of this focus must be on addressing the skills crisis that affects every corner of the built environment.”