Heathrow, Gatwick and Luton: Ministers preparing to back London airports expansion
The government is preparing to approve major expansion plans at three London airports, according to reports.
Chancellor Rachel Reeves is poised to announce her support for additional runways at Heathrow and Gatwick, and a bid by London Luton to significantly increase passenger capacity, in a speech later this month, according to Bloomberg.
Reeves’ speech has yet to be finalised and could still subject to be change, the report said.
The Financial Times also reported ministers are ready to give the go-ahead for Gatwick’s £2.2bn plans for a second runway.
It comes as the government looks to stimulate economic growth by pressing ahead with a series of major planning and infrastructure decisions.
“We are determined to get our economy moving and secure the long-term future of the UK’s aviation sector,” the government said in a statement. “All expansion proposals must demonstrate they contribute to economic growth” while staying in line with environmental obligations.
Approving all three airport expansions could prove particularly contentious given looming net-zero targets. Heathrow’s long-delayed plans for a third runway are the most contentious, given the size of the UK’s busiest hub.
Such a move is likely to prompt opposition from London Mayor Sadiq Khan, who has reacted furiously to airport expansion in the past. Energy secretary Ed Miliband is also firmly against Heathrow’s expansion bid.
A spokesperson for Khan told Morning Wire: “The Mayor has a long-standing opposition to airport expansion around London – linked to the negative impact on air quality, noise and London’s ability to reach net-zero by 2030.”
Business groups back expansion
But pressure is mounting on Reeves amid investor fears over stagflation and last week’s bond market volatility.
The UK economy expanded by 0.1 per cent in November, following 0.1 per cent contractions in both October and September, according to official data.
Previous governments have estimated the Heathrow project could pump £61bn into the UK economy over 14 years and create around 77,000 jobs. Gatwick has argued its expansion would add £1bn to the local region and create some 14,000 jobs.
“Demand for international travel has bounced back sharply following the pandemic with passenger levels at record levels, which means greater capacity is now urgently needed to ensure the UK remains competitive,” Polyvios Polyviou, Programme Director for Transport at the lobby group BusinessLDN, told Morning Wire.
“As an island nation, we should send a clear message that the UK is open for business by backing sustainable airport expansion while taking steps to accelerate the decarbonisation of the aviation sector, including through the development of a strong domestic sustainable aviation fuel industry.”
Shevaun Haviland, director general of the British Chambers of Commerce, said expanding the UK’s airport capacity would be “vital to driving economic growth,” adding it remained a “top priority” of business.
“We wholeheartedly support a third runway at Heathrow, Gatwick’s Northern Runway Project and Luton’s expansion of terminal capacity. All three projects will help boost trade, attract international investment and bring huge benefits to SMEs in supply chains across the UK. “
She added: “Any developments must be aligned to the government’s commitments on the environment. That will require the airports, the aviation sector and ministers to work together.
Transport secretary Heidi Alexander will decide on Gatwick’s runway by February 27, while a decision on Luton Airport, which has already been pushed back three times, will not be made until April.
Heathrow has yet to submit a Development Consent Order (DCO) for its project given the political uncertainty.
Bloomberg reported the £9bn Lower Thames Crossing, a major road tunnel to the east of London known for the staggering size of its planning application, is also set for approval.
The government has already backed both Stansted and London City’s expansion proposals since the summer election, overturning a local council’s ruling in the latter case.