Rachel Reeves’ promise to deliver “growth” by backing a Heathrow third runway has set her on a collision course with Labour’s net zero brigade. Ed Miliband—ringleader of the climate cabal—was noticeably absent from Reeves’ big growth speech, where she announced the airport expansion. He then fought against the plan in this week’s Cabinet meeting, where Guido hears Reeves blindsided her anti-growth, pro-net zero colleagues by upgrading plans last minute…
Now Miliband has doubled down, pledging a 61% cut in UK emissions by 2035—including aviation. Addressing the UN, he warned the industry must make “deep reductions.” Labour’s Transport Select Committee chair Ruth Cadbury, a staunch Heathrow expansion opponent, has called an emergency session to scrutinise the plans. Meanwhile, Anneliese Dodds and Hilary Benn refused to say whether they too fought against the plans at the Cabinet meeting. Yesterday, Reeves insisted climate crusader Sadiq Khan won’t be able to stop Heathrow’s expansion, despite his legal threats. Miliband’s team again insists he won’t resign over it. Reeves will soon discover if it’s better to have your enemies inside the tent than out…
Andy Haldane, Burnham’s recent adviser on the economy who has not taken up a No10 job, told Andrew Marr on LBC:
“The market now suspects that this is a traditional tax-and-spend socialist government with better TikTok videos…
imposing windfall taxes on oil & gas or on banks or upping capital gains tax would […] repeat the mistake that Rachel made […] The Achilles heel, the fiscal Achilles heel of this government thus far has been its unwillingness and/or inability to cut public spending.”