Labour at war over Heathrow's £33billion third runway as Transport Secretary warns 'Britain loses by standing still' - as Burnham is accused of dithering over backing

One of Andy Burnham's top ministers warned 'Britain loses by standing still' as she backed plans for a third runway at Heathrow, amid deepening questions over the Prime Minister's support for the scheme.

Heidi Alexander told business leaders at the AirportsUK annual conference that the project 'has the potential to create new opportunities, jobs, investment and growth in every corner of this country'.

Her remarks came as the PM refuses to say if he backs a scheme he opposed when he was mayor of Greater Manchester.

And they could be interpreted as a pointed reference at his stated desire to create 'growth in every postcode' of the UK.

Ms Alexander's speech came after Heathrow chief executive Thomas Woldbye said he hoped the Prime Minister will throw his weight behind the third runway, adding 'it would be good to know where Government is on this'. 

He warned that investment could be lost overseas without a firm commitment to the construction of a new runway by the New Year.

At the conference in London today Ms Alexander told industry figures: 'Britain loses by standing still, and that focus on competitiveness is guiding our approach to Heathrow.

'A third runway has the potential to create new opportunities, jobs, investment and growth in every corner of this country.'

She also insisted that airport expansion and competitiveness was not incompatible with climate ambitions.

'You'll never hear me peddling false trade-offs' such as 'going for growth means ditching decarbonisation,' she told the conference.

Before Mr Burnham entered No10, predecessor Sir Keir Starmer and then-chancellor Rachel Reeves had backed the construction of a third runway at the UK's busiest airport.

But Mr Burnham has refused to confirm his support, saying it is subject to a consultation and then the planning process.

The Prime Minister's official spokesman said economic growth 'is obviously very important' and acknowledged the potential boost that could be delivered by a third runway.

But he added: 'This is a major privately financed infrastructure project, and there's a proper process to go through. It's entirely right that the Prime Minister considers the detail and listens to the views put forward.

'Any final decisions will have to meet the tests we've set on climate, noise, and air quality. But there's currently no live planning application for a third runway.'

On Monday, Heathrow boss Thomas Woldbye warned investors 'cannot wait forever' and could pull the plug if Mr Burnham doesn’t give his backing to a third runway by January.

This is when they must reportedly decide whether to submit a formal planning application for the new runway.

While expansion of the UK’s biggest airport was backed by former premier Sir Keir Starmer’s government as part of a wider attempt to boost growth in Britain’s sluggish economy, Mr Burnham is understood to have told transport secretary Ms Alexander he’s ‘unconvinced’ by the need for a third runway at Heathrow.

But Mr Woldbye warned that the huge investment plan could be scuppered if it isn't backed within weeks, dealing a blow to the government's growth plans.

He said: ‘Our shareholders would like to do this.

‘They do think that things are taking a long time, and so far they have decided to be OK with that…But of course we cannot wait forever.’