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Chancellor Rachel Reeves said the demand for growth is “squeezing” the Government's net zero commitments, as she prepares show his support of airport expansion in the London area, including Heathrow.
Speaking at the World Economic Forum in Davos, the prime minister called for growth in the UK government on “first mission”.
Asked what he would do if faced with a choice between economic growth and the UK's 2050 target, Reeves said: “If it's the main mission, it's definitely the most important.”
His comments come as the government tries to back plans to expand Luton and Gatwick airports, as well as decide whether to signal its approval for a controversial third runway at Heathrow.
The possibility of Heathrow's expansion threatens to split the cabinet, and will force the government to choose between its stated goals of supporting “growth” and reducing the UK's carbon emissions.
The chancellor on Wednesday said the government had already signed off on the expansion of City and Stansted airports, which also serve the capital, demonstrating “this government's commitment to making Britain a significant trading nation”.
Speaking earlier at the event in Davos, Reeves he said: “When we say that growth is the main task of this government, we mean it. That means it controls other things. “
He is expected to show in a speech next week that the government favors the expansion of Gatwick and Luton airports, while confirming his support for a third runway at Heathrow.
Heathrow's expansion was previously opposed by Prime Minister Sir Keir Starmer and senior Labor figures.
Some Whitehall officials believe that Reeves, a supporter of Heathrow expansion, is trying to pressure Starmer into publicly agreeing to a third runway. “That's not my test,” said one ally of the prime minister.
Starmer, when asked about the issue in the House of Commons on Wednesday, refused to comment on “speculation”, adding: “We are a government committed to growth. We are committed to the aviation sector and to our climate commitments.”
In theory, Reeves reiterating his support for Heathrow's third runway could be a political signal to the airport's management needs before he decides whether or not to move forward with proposals this year.
Reeves on Wednesday said any approval of the Heathrow scheme “would require joint cabinet agreement”.
In the last House of Commons vote on the third runway at Heathrow in 2018, seven members of the current cabinet voted against it, including Starmer. The others were Ed Miliband, Steve Reed, Lisa Nandy, Darren Jones, Anneliese Dodds and Hilary Benn.
But Heathrow's management has been reluctant to revive the program without clear political support. Miliband, now climate change secretary, has threatened to withdraw on the issue during Gordon Brown's administration, while London mayor Sir Sadiq Khan is also opposed.
A spokesman for Khan said this week: “The mayor has a long-standing opposition to airport expansion in London – linked to the negative impact on air quality, noise and London's ability to reach zero by 2030.”
Critics argue that the massive increase in aviation is inconsistent with the UK's binding goal of achieving zero carbon emissions, given that aviation is one of the most difficult industries to decarbonise – despite the growing prospect of using “sustainable aviation fuels”.
Downing Street said this week that it still needs a third runway at Heathrow to meet its four criteria for carbon emissions, noise, air quality and growth. Local noise and air pollution issues are considered by experts to be the most difficult to deal with in the densely populated west London area.
Meanwhile Reeves, who spent Wednesday meeting with bankers and investors in Davos, reiterated his support for deregulation and the need to clear the way for more construction.
“There is always a reason not to invest, not to build,” he said. “There are bats and newts. It can add something to the carbon footprint in 20 years. “
Asked whether he would change the pension tax regime in his next Budget in the autumn, Reeves refused to rule it out, noting only that he did not change the current regime in his first Budget.
Reeves is trying to reassure businesses that the UK has a clear plan for growth following the disastrous sell-off in government bonds this month.
He also promised to explore ways for highly skilled workers to come to the UK as the country tries to attract talent in sectors such as AI and life sciences.
However his task of wooing investors has not been made easier by continuing concerns about the state of the UK's public finances – and the country's vulnerability to further selling in global bond markets, which could add to the debt's interest burden.
Government borrowing reached £17.8bn last month, £10.1bn more than December 2023, and the third-highest of any December on record, according to the Office for National Statistics.