Rachel Reeves has confirmed support for the expansion of Heathrow airport, but a number of issues must be resolved if a third runway is to be built.
The Chancellor said the Government is “inviting” Heathrow to bring forward proposals for a third runway “by the summer”.
Transport Secretary Heidi Alexander said once these have been received, the Department for Transport will review its Airports National Policy Statement NPS).
She added that the NPS “provides the basis for decision making” on a Development Consent Order (DCO) application submitted by the airport.
The DCO process is expected to last around 18 months and will involve a public consultation on the expansion plan.
The Planning Inspectorate will consider the application and make a recommendation to the Transport Secretary, who will decide whether to grant the DCO.
If the scheme is approved, there is a strong possibility that campaigners will launch judicial reviews of the minister’s decision.
If legal challenges are not brought or are unsuccessful, Heathrow can begin construction.
There is currently no timeline for when that will happen, but it is likely to be at least another decade before a new runway opens.
The airport is considering investing in its supply chain even before it submits a DCO application and hopes to create new jobs by the end of this Parliament.
Meanwhile, Heathrow sources said airport bosses want to work with the Government on a number of changes before making major investments in the project.
They are seeking planning reforms that mean they can be confident an application to build the scheme will not be held up for several years because of appeals.
They also want an overhaul in how the airport’s finances are regulated, as they believe the current system would not allow them to recoup the investment needed to build a new runway.
The Civil Aviation Authority determines the cap on per passenger charges that airlines must pay to Heathrow.
A third issue that Heathrow bosses want assurances over is airspace modernisation, to reduce the time and fuel wasted by outdated and inefficient flight routes.