Heathrow Airport: Third Runway

Debate between Nusrat Ghani and Keir Mather

Thursday 14th May 2026 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I hesitate to even raise this, but in case the Minister is anxious about time, we can—fortunately or unfortunately—run to 5.30 pm.

[Keir Mather]

Fortunately, Madam Deputy Speaker—come on!

The hon. Member is right to say that the economic activity and jobs created by Heathrow airport are dependent on international supply chains, and I know his constituents will be looking with concern at what is happening in the middle east. The Department for Transport is engaging very closely with both our refineries and the aviation sector to ensure we have security of aviation fuel supply. That work is ongoing, and we are confident that, working closely with those stakeholders, we can ensure that the impacts of the crisis in the middle east are sufficiently mitigated. I know how important that will be to his constituents.

Capacity constraints are hindering further growth in our aviation sector. Heathrow airport, as the UK’s busiest airport and only hub airport, plays a critical role in enabling international connectivity for both passengers and freight: 73% of UK long-haul flights go from Heathrow and 72% of UK international air freight by value goes through the airport. The decision about a third runway at Heathrow has been ducked and delayed for decades, which has resulted in the capacity of the UK’s only hub airport being constrained. That has had a material impact on Heathrow, with the airport operating at over 95% capacity for most of the past two decades.

Our ambition, as set out by the Chancellor, is clear: it is to enable delivery of an operational third runway at Heathrow by 2035. Better connections and a third runway have the potential to boost the UK economy and support thousands of jobs. Businesses, and business groups such as the Federation of Small Businesses, the British Chambers of Commerce and regional chambers across the country, are clear in their support for Heathrow expansion, as are major trade unions. The Government have been clear that any Heathrow expansion proposal needs to demonstrate that it can contribute to economic growth, be delivered in line with the UK’s legally binding climate change commitments and meet strict environmental requirements on air quality and noise pollution.

As hon. Members will be aware, last October my right hon. Friend the Secretary of State for Transport announced that the ANPS, which is the Government’s policy framework for additional runway capacity at Heathrow airport, would be reviewed to reflect changes in legislation, policy and data, and to ensure that any proposed scheme meets the Government’s four tests—on economic growth, climate change, air quality and noise—for expansion at Heathrow. The ANPS provides the basis for decision making on granting development consent for a new runway. Any scheme must be delivered in line with the UK’s legal, climate and environmental obligations.

In November, the Government announced that the north-west runway scheme, put forward by Heathrow Airport Ltd, will be used to inform the review of the ANPS. However, once the Government have reviewed the ANPS, and depending on the outcome of the review, any applicant, also known as a promoter, can submit a proposal through the development consent order process.

It is for scheme promoters to decide when to submit any DCO application for a third runway scheme, and any promoter may submit a proposal for development consent. It is at that stage of the planning process when the precise impact of Heathrow would be considered. Any DCO application to build a third runway would go through a strict and independent process. It would be examined by the Planning Inspectorate. The Secretary of State for Transport would then make a final decision on whether to grant consent.

Sustainable Aviation Fuel Bill

Debate between Nusrat Ghani and Keir Mather

Consideration of Lords amendments
Tuesday 3rd March 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Transport (Keir Mather)]

I beg to move, That this House agrees with Lords amendment 1.

[Madam Deputy Speaker]

With this it will be convenient to discuss Lords amendments 2 to 6.

[Keir Mather]

I am pleased that the Sustainable Aviation Fuel Bill has returned to this House with only a small number of Government amendments. I am grateful to Members of both Houses for their engagement and constructive approach throughout the Bill’s passage. I wish to thank my predecessor, my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane), for his skilful steering of this Bill through its initial stages. I also thank Lord Hendy of Richmond Hill for his valuable support, and for leading the Bill so effectively through the other place. The Government brought forward six amendments, which were agreed to, and we are considering them today.

Lords amendments 1 to 3 ensure that the Secretary of State can enter into revenue certainty contracts only when the supported SAF is produced at a facility in the United Kingdom. Throughout the passage of the Bill in the Lords, peers provided thoughtful and collaborative suggestions on this topic, and I am grateful to them. The amendments to clause 1 provide that sustainable aviation fuel is to be regarded as “UK-produced” where any part of the process for converting feedstocks into fuel occurs within the UK. These amendments give the industry a clear and confident signal of support, and align with our intended objective for this Bill: the objective of supporting the UK’s sustainable aviation fuel industry.

Lords amendments 4 to 6 require the Secretary of State to consult the devolved Governments before making regulations under the powers in clauses 1, 3, 10 or 11. This ensures that devolved Governments are fully engaged on matters in their areas of competence.

[Keir Mather]

To meet the provisions of the SAF mandate, we believe it will be necessary to have a mixture of sustainable aviation fuel produced in the United Kingdom and SAF imported from overseas. However, the Bill creates a revenue certainty mechanism—the first of its kind—to drive this nascent market to increase SAF production. We believe that the mechanism will demonstrably increase the amount of UK-produced SAF in the system, and will have an impact on the production of the good, skilled jobs in our energy industry that we all care about so much. I hope that reassures my hon. Friend that we believe that the Bill is the right process to go through to stimulate this industry, and to give investors the certainty that they need that the UK Government stand four-square behind the creation of sustainable aviation fuel in this country.

Clause 1(8) allows the Secretary of State to make regulations extending the period in which they can direct the counterparty to enter into contracts by up to five years at a time. Clause 3(1) gives the Secretary of State the power to make regulations requiring the counterparty to maintain a register of information on revenue certainty contracts, and to publish details about the contracts. Clause 10(1) gives the Secretary of State the power to make regulations that require the counterparty to pay a surplus to levy payers, and require levy payers to pass on the benefits of that surplus to their customers. Clause 11(4) gives the Secretary of State the power to make regulations amending financial penalties to reflect inflation, and to specify the basis on which a company’s turnover is to be determined for the purpose of those penalties. The amendments do not affect the delivery of the Bill or its underlying policy intent, and final decisions in relation to the regulation-making powers in the Bill will continue to rest with the Secretary of State for Transport.

The Government’s objective is to implement the revenue certainty mechanism for the SAF industry effectively across the whole of the United Kingdom and to work collaboratively with the devolved Governments to do so. I am grateful for the engagement on the Bill from across the devolved Governments and pleased to confirm that we have obtained legislative consent from all three devolved Governments. I therefore commend all six amendments to the House and urge Members to support them.

[Madam Deputy Speaker]

I call the shadow Minister, Greg Smith. I believe it is your birthday. [Hon. Members: “Aw!”] Happy birthday!