British Airways plane landing at Heathrow Airport

Heathrow expansion backed as part of economic growth plans

The government has confirmed that economic growth is to be kickstarted, thanks to the Chancellor’s support for the expansion of Heathrow Airport.

The government will swiftly review the Airports National Policy Statement (ANPS), which provides the framework for granting development consent for the new runway. This review will ensure that any scheme aligns with legal, environmental, and climate obligations.

Research by Frontier Economics reveals that 60% of the economic benefits from the third runway will be felt outside London and the South East. This expansion is expected to create over 100,000 jobs locally and many more indirectly, putting more money in the pockets of working people across the UK through lower fares and greater passenger choice.

Transport Secretary Heidi Alexander is set to make decisions on expansion plans for Gatwick and Luton airports. Additionally, the government will collaborate with Doncaster Council and the Mayor of South Yorkshire to support efforts to reopen Doncaster Sheffield Airport as a thriving regional hub.

During her announcement, Chancellor Rachel Reeves said:

“I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change.

“And now the case is stronger than ever because our reforms to the economy - like speeding up our planning system, and our strengthened plans to modernise UK airspace - mean the delivery of this project is set up for success.

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

Heathrow expansion QUOTE

The Chancellor has also announced a new partnership between global logistics giant Prologis and East Midlands Airport to build an advanced manufacturing park within the East Midlands Freeport zone. This project aims to unlock £1 billion of investment and create 2,000 jobs.

Following the swift approval of expansion plans for London City Airport, which aims to accommodate nine million passengers per year by 2031, the government has also greenlit a £1.1 billion investment at Stansted Airport. This investment will extend the terminal and create 5,000 jobs.

The government's commitment to economic growth is evident in its efforts to secure the future of the UK's world-class aviation sector. Air freight accounted for 57% of the UK's non-EU exports by value in 2023, with over 60% of freight passing through Heathrow. International connectivity supports vital tourism and business links, with overseas visitors spending £31 billion in the UK in 2023 and 15 million business travellers using Heathrow.

Prime Minister Keir Starmer recently outlined reforms to speed up the planning system, emphasising a presumption to "back the builders over the blockers." The government has committed to making decisions on 150 major economic infrastructure applications over this Parliament. The upcoming Planning and Infrastructure Bill will introduce further reforms to streamline the approval process for infrastructure projects.

 

Image credit: iStock

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