Rachel Reeves has thrown down the gauntlet to cabinet colleagues, warning them that pro-growth measures must trump other priorities.
The chancellor is gearing up for a possible row over her support for a third runway at Heathrow as part of a major expansion of London’s airports to boost growth.
And, asked about potential opposition to the move from net zero secretary Ed Miliband, Ms Reeves said: “The answer can’t always be no.”
In her strongest attack yet on nimbys (Not in My Back Yard) holding the economy to ransom, she said: “This was the problem in the last government. There was always someone that said ‘oh yes of course we want to grow the economy but we don’t like investment, we don’t like that wind farm, we don’t like those pylons, we don’t like that airport, we don’t want that housing near us’.
“The answer can’t always be no. And that’s been the problem in Britain for a long time: that when there was a choice between something that would grow the economy and sort of anything else, ‘anything else’ always won.”
Ms Reeves is expected to back plans for a third runway at Heathrow, Britain’s busiest airport, as early as next week, opening a major split in Labour’s ranks.
London mayor Sadiq Khan has said he would not hesitate to launch a legal challenge against the development, while Greater Manchester mayor Andy Burnham said the development would concentrate growth in London.
Meanwhile cabinet colleague Mr Miliband has long been opposed to a third runway at Heathrow, while Sir Keir Starmer himself has previously voted against the airport’s expansion.
But Ms Reeves is braced for the cabinet bust up, with a series of dire warnings about the state of Britain’s economy only furthering her determination to get the economy moving.
In the latest blow for Ms Reeves, official figures showed a bigger-than-expected surge in government borrowing last month to nearly £18 billion - the highest level for four years.
It was £10.1 billion higher than the same month last year, and far higher than economists had forecast.
That followed volatility in the UK government bond market which sent public sector borrowing costs soaring and led to fears that Ms Reeves is on track to miss her fiscal rules.
She is expected to announce a series of deep cuts in an upcoming spending review.
EasyJet chief executive Kenton Jarvis backed the expected announcement from the chancellor, telling reporters: "We welcome the decisive action by the Government to grow the economy.
"We’ve always said that aviation, the industry, is an enabler of economic growth.
"When it comes to Heathrow, I’ve always thought Heathrow would fit our network of primary airports with great catchment areas.
"It would be a unique opportunity to operate from Heathrow at scale - because obviously right now it’s slot-constrained - and give us an opportunity to provide lower fares for UK consumers that currently at Heathrow just have the option of flag carriers.
"It fits with our network, we’re present at all the other major European airports like Schiphol, Charles de Gaulle, Orly, Geneva etc."
Opponents of airport expansion claim boosting flights would be damaging for the environment.
Alethea Warrington, head of aviation at climate charity Possible, said: "Approving airport expansions would be a catastrophic misstep for a Government which claims to be a climate leader.
"This huge increase in emissions won’t help our economy, and would just encourage the small group of frequent flyers who take most of the flights, further worsening the UK’s huge tourism deficit."
She added that the Government should focus on supporting "affordable and low-carbon trains and buses".
Jenny Bates, transport campaigner at Friends of the Earth, said: "A decision to green-light another runway at Heathrow would be hugely irresponsible in the midst of a climate emergency and given 2024 was the first year to surpass the all-important 1.5 degrees threshold.
"It would also fly in the face of the Prime Minister’s promise to show international leadership on climate change."
Heathrow’s third runway project secured parliamentary approval in June 2018 but has been delayed by legal challenges over the environmental impact, and the coronavirus pandemic.
There is currently no Development Consent Order application for the scheme, and it is up to Heathrow if it submits one.
Transport Secretary Heidi Alexander has a deadline of February 27 to make a decision on whether to allow Gatwick to bring its existing emergency northern runway into routine use.
She has a deadline of April 3 to decide on Luton Airport’s bid to raise its cap on passenger numbers.
There is also speculation that Ms Reeves will support the Lower Thames Crossing - a proposed new road crossing between Kent and Essex - and a Universal Studios theme park in Bedford.
