Heathrow to unveil billions in investment and pledge to use UK steel for third runway
Heathrow has confirmed a multibillion-pound investment in major upgrades to the airport, including plans for a third runway, in a move expected to unlock thousands of UK steel jobs.
Heathrow chief executive Thomas Woldbye is expected to lay the groundwork for what is the largest private investment programme in Heathrow’s history in a speech on Wednesday at British Steel’s headquarters in Scunthorpe.
The event will also see the UK’s busiest hub sign the UK Steel Charter, pledging to use UK-made steel where possible as part of the plans.
Woldbye will say: “This privately funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the Chancellor’s call to get Britain building.”
Industry Minister Sarah Jones will also deliver a speech.
Confirmation that Heathrow will pursue its long-delayed and highly contentious third runway proposals comes after backing from Chancellor Rachel Reeves last month. However, such an extensive programme of investment had yet to be unveiled.
The fully privately funded programme includes upgrades to capacity at Terminals 2 and 5 alongside the third runway investment. It will also see new local transport connections and infrastructure built to support the airport’s sustainable energy targets.
Woldbye will argue a third runway is “critical for the country’s future economic success” and that the investment will ensure Heathrow remains competitive on the global stage.
But the announcement is likely to spark further controversy over the environmental implications of pursuing airport expansion amid looming climate targets. Heathrow’s third runway has long faced fierce opposition from London’ Mayor Sir Sadiq Khan and environmental campaign groups.
Woldbye will seek to quell concerns by citing the airport’s use of the controversial biofuel SAF, which many believe is too costly to ever be used widely enough but is more sustainable than traditional kerosene-based jet fuel.
The Danish businessman will also argue noise pollution is smaller despite the hub reporting its busiest ever year of passenger traffic in 2024. “I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”
Heathrow’s pledge to use UK-made steel for its construction projects prompted praise from industry, business groups and unions, with estimates suggesting a third runway could require 400,000 tonnes.
Responding to the announcement, British Steel’s chief executive Zengwei An, said: “Major developments like this, which require huge volumes of steel, demonstrate why the UK must have a strong and vibrant steel manufacturing sector.
“As Britain’s only manufacturer of heavy constructional steel sections, and rail, we have a critical role to play in helping this country meet its many infrastructure needs and look forward to working with Heathrow, other customers, and the UK government, to support investments which grow the British economy.”
Craig Beaumont, Executive Director at the Federation of Small Businesses, said: “Getting growth means moving forward with a strong plan for a third runway at Heathrow. Small businesses across the country will benefit – SME procurement to help build it, a step-change in global and domestic connectivity, a shot in the arm for tourism, and a major boost to exports and freight.
Above all, if we can finally get a move on with the project after so much delay it will put a neon sign above the UK that we are open for business.”