Supporting the UK aviation sector
Source: gov.uk (2025-02-26)

Secretary of State for Transport outlines next steps for airport expansion during the Airlines UK annual dinner.

Good evening, everyone.

I’ve had the pleasure of meeting some of you over the last couple of weeks individually. But I will be honest with you, not only did I not expect to find myself in this job, I also didn’t envisage spending quite so much time talking about airports.

But I am glad I have because aviation not only underpins the growth we want, but our approach to it says a lot about the country we want to be.

Now some might say the current debate about airport expansion highlights a fundamental tension between growing the economy, whilst protecting the environment.

I say: we must do both.

We could put our head in the sand and pretend that people don’t want to fly. Pretend that families aren’t dispersed across the globe. That they don’t work hard for, and enjoy, their summer holidays. We could pretend that businesses don’t have international clients and colleagues and that air freight isn’t a significant part of the UK’s trade by value. We could pretend that aviation isn’t critical to the economy of an island nation. But we would be knowingly detaching ourselves from reality.

We live in an increasingly interconnected world. Whilst technology has in some respects brought us all so much closer together, there are some things that smartphones, streaming or Zoom just can’t replicate. So as a government, we have a choice – either engage with the world as we find it, or we fail. We know demand for air travel is only going in one direction. Record-breaking stats from the Civil Aviation Authority (CAA) last week confirm passenger levels were 7% higher in 2024 than the previous year. Demand is up – and if we don’t meet it, then we will lose out to our European competitors and risk being on the wrong side of public aspirations.

So the Chancellor has been clear: we will do all we can to support the sector and take the brakes off growth. It’s why we’ve approved London City Airport’s plans to expand to 9 million passengers per year by 2031 and it’s why we welcomed Stansted’s additional £1.1 billion investment to extend its terminal. But there remain capacity problems – particularly at airports in the southeast.

So, as you know, planning applications for Gatwick and Luton are literally on my desk. And as you might have picked up, the government has invited proposals for a third runway at Heathrow to be brought forward by the summer. Once received, we will move at speed to review the Airports National Policy Statement (https://www.gov.uk/government/publications/airports-national-policy-statement). But let me be clear – this is in no way a blank cheque. My job as decision maker on all of these schemes will be to strike a balance – between expansion’s potential benefits of jobs, trade and tourism, with tough questions on:
- whether this is compatible with our climate and air quality obligations
- whether we can minimise noise and disruption to local communities
- whether this will benefit airlines and passengers, and how we make sure costs are shared fairly
This government believes in increasing airport capacity. We’re ambitious for the sector, but these strict criteria must be met if we are to balance the needs of today with the necessities of tomorrow.

But it’s not just about airport expansion – I want us to take a holistic look at aviation. Our Aviation Minister, Mike Kane, has worked with many of you for years on what are now some of this government’s key manifesto commitments. He has seen first-hand this sector re-emerge stronger from one of its toughest periods and stand today at the cusp of what could be the biggest transformation in its 100-year history. Now more than ever, you need a government that is a willing partner you can trust, whose electoral mandate provides stability, and whose policy agenda provides certainty.

But I would ask that you judge me and the government not on what we say – because goodness knows you’ve had enough of politicians promising you things. But judge us on the choices we make. While this government is only 8 months old, our choices are clear. Every decision measured against the yardstick of growth:
- planning reforms – delayed by successive governments as just too hard, now allowing us to finally build again
- a national wealth fund – now creating thousands of jobs and unlocking investment
- the first industrial strategy in years – due this summer
- work accelerated on modernising our airspace, that critical national infrastructure which gets forgotten far too often
Right across the board, it’s clear, we’re choosing growth. For us here tonight, that means running hell for leather towards greener and quieter flights. Stand still and we risk making ourselves poorer in every way. I, therefore, see both decarbonisation and modernisation, above all, as a moral mission.

Let me be clear, I have no intention of clipping anyone’s wings. I am not some sort of flight-shaming eco-warrior. I love flying – I always have. For me, there is something intrinsically optimistic about taking to the sky. I’d even go as far as saying that EasyJet’s bacon sandwich on an early morning flight from Gatwick is up there with my favourite things in life. Other airports, operators and snacks are of course available!

I believe it is incumbent on all those in public life to give businesses the tools for success and increase opportunities for people to improve their lot. That means more passengers and freight in the air, not less. But I am equally clear that this must also mean less carbon, not more. That’s why sustainable aviation fuel (SAF) is so important. Over its lifecycle, it will reduce emissions by 70% when compared with jet fuel. And just weeks into office, we reiterated our commitment to the SAF Mandate (https://www.gov.uk/government/collections/sustainable-aviation-fuel-saf-mandate) and, in November, we signed it into law.

Throughout, we’ve listened to your concerns. You rightly said demand without supply will mean higher costs – and that’s on top of pressures you’re already facing on many fronts. Harming your competitiveness doesn’t help anyone. So I don’t suggest for a second that SAF is a silver bullet, but it is integral to reaching net zero aviation by 2050 – that’s why we are backing it to the hilt. And by legislating for a price guarantee, we will send a clear signal to investors: that this is a serious opportunity for you.

It will give certainty to producers looking to grow their UK production, and our £63 million investment in the Advanced Fuels Fund will ensure we start becoming more self-sufficient.

I know it is early days, and many technologies are not yet scaled, but SAF sits alongside a range of other levers that we must pull to decarbonise the sector. More efficient aircraft and engines will burn less fuel and play a key role. We are even starting to get ready for zero emission flights. These projects – and more – are supported by nearly £1 billion in government funding for the aerospace technology programme as well as the CAA’s hydrogen in aviation regulatory challenge. And I’ve mentioned it already, but our ongoing commitment to airspace modernisation is key for both growth and decarbonisation, with the potential for quicker and greener flights.

Getting all this right matters – it matters for the planet and for the next generation. I don’t have children, but I know what I want for my nieces and nephew.

A world ravaged by climate change and extreme weather events? Of course not.

A world where they have been denied the opportunities to travel that I have? No.

I want them to live life. To fly. To see different places. Experience different cultures. To understand that those who would see countries retreating into their own corners of the globe are on the wrong side of history.

So this matters – for the next generation, but also for today. Decarbonising aviation could be worth billions to the economy, and support thousands of jobs. It is an important enabler to our industrial strategy.

And if we are to be successful, we must embrace partnership.

I am grateful to many in this room for your involvement in the Jet Zero taskforce, it’s crucial that we pool our resources and expertise – both government and industry – to secure this industry’s future.

So, I’ll finish by saying this – the government’s Plan for Change (https://www.gov.uk/missions) depends on aviation’s success, on the economic value you bring, on the jobs you support, on the trade you facilitate. But that growth depends on us running as fast as we can towards cleaner aviation. It’s the only way to break out of the paralysis successive governments have tolerated.

The new aviation futures forum will be a crucial vehicle for that work. Some of you may remember this as the Aviation Council – and I’m sorry that we seem to have to rename everything when there’s a change of government. But I hope it’s clear that our commitment is immutable: we are as determined as you are to tackling our shared challenges.

I don’t just want to talk about challenges though. Because if we continue making the right choices, we will achieve our shared vision of a growing, thriving aviation sector. One that improves both the lives and the livelihoods of people right across the country. Not many sectors so visibly and tangibly sustain both our economy and people’s lives. So let’s make sure, together, that we secure more of those benefits in the future.

Thank you.