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Reeves says UK prioritizes economic growth over net zero

by admineconai January 24, 2025
written by admineconai January 24, 2025
269

Rachel Reeves has said that economic growth is more important to the UK government than net zero, dropping a heavy hint that she intends to shrug off climate concerns and reaffirm her backing for a third runway at Heathrow.

The chancellor is expected to give her firm support to the expansion of Britain’s busiest airport – as well as bringing a second runway at Gatwick into full-time use and increasing the capacity of Luton – in a speech later this month.

The climate secretary, Ed Miliband, is understood to be opposed to Heathrow expansion, and the mayor of London, Sadiq Khan, has gone public with his concerns about the plan.

But speaking to reporters at the World Economic Forum in Davos, Switzerland, Reeves appeared to dismiss such objections, repeatedly emphasising that growth, not net zero, was the government’s “No 1 mission”.

Asked about the Heathrow decision, which is expected as soon as next week, and the potential clash with the government’s climate commitments, the chancellor said: “Growth is the No 1 mission of this government, because growth underpins everything else, whether that is improving our schools and our hospitals, or indeed being able to get to net zero.”

Read also: Data: EU made more electricity from solar than coal in 2024

Pressed on what she would do if forced to choose between net zero and economic growth, Reeves said: “Well, if it’s the No 1 mission, it’s obviously the most important thing.”

With gross domestic product data indicating that the economy barely grew in the latter part of 2024, the government has been stressing its pro-business credentials, believing private sector investment is the key to kickstarting growth.

Asked about how the government would meet its climate goals if it allowed air travel to significantly increase, Reeves said: “We have a commitment in statute passed by the previous government to get net zero by 2050.”

“There are lots of things that contribute to carbon emissions,” she added.

Reeves also highlighted green government projects, including investment in carbon capture and storage and the expansion of onshore wind.

The chancellor is in Davos alongside the business secretary, Jonathan Reynolds. Both are on a charm offensive to convince global businesses to invest in the UK. The pair will address scores of businesses at a lunch event on Thursday.

Reeves and Reynolds have been highlighting a series of recent pro-business decisions, including the ousting of the chair of the Competition and Markets Authority, Marcus Bokkerink, this week.

Story was adapted from the Guardian.

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