by Xinhua writers Zheng Bofei, Larry Neild

LONDON, Jan. 30 (Xinhua) -- British Chancellor Rachel Reeves on Wednesday outlined the latest strategy to revive growth. Yet the policy ambition's path looks treacherous, as sluggish gross domestic product (GDP) and rising borrowing costs keep challenging the economic plans.

Six months into office, the government has seen a less-than-optimistic picture, with the GDP growing by just 0.1 percent in November 2024, employment declining at a record rate, and government borrowing costs reaching their highest levels since the 2008 financial crisis.

Reeves said in her speech that Britain needs economic growth now more than ever. Yet a complex web of planning hurdles, regulatory barriers and bureaucratic red tape awaits the government.

DELAYED RUNWAY

The British government urgently needs sustained growth to fulfill its promises, including reducing hospital waiting lists, which have left over three million people waiting more than 18 weeks for treatment, increasing police presence, as the prime minister tightens measures against anti-social behavior, and achieving the country's clean-energy targets.

One such project facing delays is the long-debated third runway at Heathrow Airport. On Wednesday morning, Reeves announced government support for the expansion -- the first time a Labour government has backed the plan since it was introduced by the Gordon Brown administration in 2009.

As one of the world's busiest transportation hubs, Heathrow Airport has long passed its limit, and the expansion plan has been heavily criticized for its environmental impact, seemingly contradicting the government's pledge to reduce carbon emissions.

According to the Heathrow Association for the Control of Aircraft Noise (HACAN), carbon emissions from Heathrow account for more than half of all aviation emissions in Britain. The airport currently emits around 20 million tons of carbon dioxide annually, with projections suggesting an additional 7 million tons if the third runway is built.

The economic debate around Heathrow's expansion remains contentious. Following Reeves's announcement, London Mayor Sadiq Khan was among the first to object. He wrote on social media after her speech: "Despite the progress that's been made in the aviation sector to make it more sustainable, I'm simply not convinced that you can have hundreds of thousands of additional flights at Heathrow every year without a hugely damaging impact on our environment." Khan also hinted at the possibility of challenging the plan through legal avenues.

"The proposed expansion of Heathrow could be deeply damaging to the balance of the UK's regional economies, taking both direct air transport jobs and wider leisure and tourism spending out of the UK's nations and regions and into London and the South East," Alex Chapman, senior economist from the thinktank New Economics Foundation, told Xinhua.

"I don't believe the third runway at Heathrow, or the other airport expansions are a good idea, the industry does not yet have supply-side interventions that will decarbonize at a rate fast enough to meet our carbon budget," said Richard Sulley, senior research fellow in Sustainability Policy at the Grantham Centre, University of Sheffield.

BATTLING HEADWINDS

The British government has thrown its weight behind planning reforms to bolster investor confidence, yet many projects may not materialize until the 2030s.

These initiatives include improving rail and road links to reduce travel times between Oxford and Cambridge, constructing new reservoirs to address water shortages, and increasing investment in high-tech industries.

"I think we've had a long time in the UK where there's perhaps been slow progress on these types of projects. I think that's a step change from what we've seen, obviously, in the last decade or so," said Olivier Sykes, discipline lead for planning and senior lecturer in European spatial planning at the University of Liverpool.

"At the end of the day, as the expression goes, the rest is politics," Sykes added.

As borrowing costs rise and tax pressures mount, Britain's growth ambitions risk being overshadowed by mounting economic headwinds and political opposition. Enditem

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