Rachel Reeves backs South Yorkshire leaders' plans to reopen Doncaster-Sheffield Airport

Ms Reeves said: “Our mission to grow the economy is about raising living standards in every single part of the UK.”

As part of this, she announced her support for the plans to reopen DSA.

The Chancellor said: “The last government stood by as Doncaster-Sheffield Airport was closed by its owner despite the overwhelming support for it to stay open.

“It now sits idle, despite the potential to drive jobs and growth across the North.

“So, I can announce today that we will work with Doncaster Council and the Mayor of South Yorkshire Oliver Coppard to support their efforts to recreate South Yorkshire airport city as a thriving regional airport.

“This is just the start of our work to get more investment into every nation and region of Britain.”

Mr Coppard, the South Yorkshire Mayor, described this as a “hugely welcome intervention” saying that government support “could be vital in helping us to re-open Doncaster-Sheffield Airport”.

He said: “The last government didn’t lift a finger to support our airport.

“That it closed with 800 direct jobs lost in South Yorkshire is in no small part down to their lack of support.

“By contrast, this government has now committed to working with the City of Doncaster Council and with me because we share the same ambition for growth, and can see the significant opportunity presented by the South Yorkshire Airport City Plan; a plan to reopen DSA, build hundreds of homes and create a world leading sustainable aviation hub in South Yorkshire.”

He added: “I know people and businesses want to see DSA re-open as quickly as possible. I’m grateful to Rachel Reeves and the government for now committing to work with us on the challenges and opportunities that presents, and help us towards that goal.”

At a council meeting last week, Mayor Ros Jones confirmed the authority was proposing to use funding from a £900m settlement given to the South Yorkshire Mayor, Mr Coppard, as part of devolution arrangements to reopen the airport.

It was closed in 2022 after the owners, the Peel Group, said it was no longer viable.

Doncaster's share of the funding known as Gainshare would go to a new wholly owned council company called FlyDoncaster.

A report by the Government's Subsidy Advice Unit (SAU) says the earliest repayment on the £105m loan will be paid in year 11, with the "full balance repaid by year 27 at the earliest, but possibly as late as year 50".

A final decision will be made when the council sets its budget on February 27.

Mr Coppard said: “We will need to carefully review that plan while working with the government to get to a final decision by the summer.”

The most high-profile decision Ms Reeves made in her speech was to back a third runway at Heathrow Airport, in West London, which is currently opposed by Mayor Sadiq Khan and local Labour MPs.

The Chancellor said: “I can confirm today that this Government supports a third runway at Heathrow and is inviting proposals to be be brought forward by the summer.

“We will then take forward a full assessment through the airport national policy statement. This will ensure that the project is value for money and our clear expectation is that any associated service transport costs will be financed through private funding.

“It will ensure that a third runway is delivered in line with our legal, environmental and climate objectives.”

Ms Reeves had earlier said a third runway at the hub airport was “badly needed”, that the previous government had taken no action on it and claimed no full-length runway has been built in Britain since the 1940s.