After a week or so of speculation, the UK government’s chief finance minister Rachel Reeves has confirmed the renewed stance of support for the expansion of London Heathrow Airport (LHR) via a third runway.
The plan is not new. It has been a political shibboleth for an entire generation of British politicians. But Reeves has reignited the discussion as she tries to engineer growth in the UK economy.
Here are some of the responses to the signalling of central government support for the growth plan.
AirportsUK
Formerly known as the Airport Operators Association, AirportsUK represents UK airport management as a trade association. Its CEO Karen Dee said:
“Airports make an enormous contribution to the economy, connecting businesses, facilitating imports and exports, bringing in investment and creating jobs.
Expanding capacity will support growth in all these areas and will not come at the expense of our sustainability goals.”
“New, cleaner fuels, more efficient and quieter aircraft, decarbonised airport operations and modernisation of our airspace will all ensure aviation is able to meet its obligations, alongside growth.”
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“The chancellor [Reeves] is right to get behind airports as key engines for economic growth and to prioritise policies that can help deliver additional global connectivity.”
UK Civil Aviation Authority
If the plan is to be realised, the CAA is a vital partner for government. Without its approval, it’s hard to see how the third runway plan will ever get off the ground (excuse the pun).
CEO Rob Bishton had this to say:
“We recognise the vital role that aviation plays in the growth of the UK economy, and the role of the aviation regulator has in enabling that.
Expanding the sector will give passengers more choice and build resilience as well as contributing to the UK’s productivity.
“In doing so, it will be important for the sector to remain safe and grow in a responsible way. In undertaking this regulatory role, we will work with Government and the aviation sector.”
Unite, the union
As many commentators have pointed out this morning, the expansive plans will need a workforce to physically create the new Heathrow.
A significant voice in that respect is Sharon Graham, the general secretary of Unite, which is one of the UK’s largest and most powerful labour unions. She was not fully convinced by Reeves’ speech, but was not against the plan as a whole.
“Rachel Reeves is right our economy needs to grow but her dash for growth will be undermined without joined up thinking, a coherent industrial strategy and ensuring that workers directly benefit,” Graham said.
“Investment and planning approval must be linked to cast iron commitments to create well paid, unionised jobs here in the UK. Otherwise, the government is relying on a trickle-down effect to increase prosperity and workers are left waiting for crumbs from rich men’s tables.
“Despite the positive news about Heathrow the government is guilty of missing an own goal by failing to directly link expansion with transforming Grangemouth into a SAF production facility. If the chancellor is serious about claiming the environmental benefits of SAF as part of her dash for growth and the government’s duty to ensure we have energy security, she will need Grangemouth to start producing SAF ASAP.”
“A third runway at Heathrow must be about more than just infrastructure – it’s about investing in the workforce and securing the future of good, unionised jobs. With workers facing economic uncertainty, these projects must deliver real opportunities for highly-skilled, well-paid employment that puts money back into working families and local communities.
ACI Europe
ACI EUROPE is the European region of Airports Council International, and acts in a similar way to AirportsUK, but on a global stage. It is based in Brussels. Its director general Olivier Jankovec shared his thoughts.
“By supporting a third runway at London Heathrow, the UK government is seizing the power of air connectivity as one of the key levers for boosting the country’s economy and reinforcing its global position. We now call on the government to expedite the approval of expansion at London Gatwick and London Luton airports.”
“With every 10% increase in air connectivity yielding a 0.5% gain in GDP and 1.6% rise in employment, allowing airports to expand where needed to meet future demand is all about effectively supporting wider economic activity — in particular trade, inward investment and tourism. This is both highly relevant and timely, considering the new era of geoeconomic competition we now face. Ultimately, this is about futureproofing the country.”
AtkinsRéalis
Ian Edwards, President and CEO of engineering giant AtkinsRéalis indicated support for the plan (while also angling for a contract).
“We welcome the decisive action being taken to remove barriers to infrastructure delivery and provide the long-term certainty needed to secure investment into the UK and create the supply chains that will deliver sustainable development across the country.
“Infrastructure investment can be the catalyst for social opportunities and economic growth in every corner in the UK: the faster infrastructure programmes can pass through planning into delivery, the sooner their full impact on the economy will be felt.
“Today’s announcements reinforce this, like the support for nationally significant projects like Heathrow expansion, Sizewell C and Lower Thames Crossing alongside progress to build regional project pipelines.
“We look forward to supporting this new phase of infrastructure development, from delivering place-led growth through regional regeneration to the vital infrastructure projects that will power homes and business, connect communities and boost jobs, skills and innovation across the country.”
FedEx
US logistics firm FedEx is one of several firms that have interests both in and around Heathrow.
Alun Cornish, manager director of Ramp and Gateways services at FedEx Europe, shared his thoughts.
“Expansion at Heathrow is a step in the right direction for UK growth. To fully realise its potential, it’s crucial that expansion plans include provisions for cargo growth alongside passenger flights.
“The ability to efficiently import and export goods is essential for UK economic growth, so it’s vital that cargo forms part of the UK’s future airport strategy. Trade is a cornerstone of our economy, and our research last year revealed that the UK remains a leading exporter to both the EU and other global markets.
“Increased capacity in UK supply chains would be welcomed and would be a key enabler of the UK’s plans for growth.”
Mayor of London
Finally, while not an industry voice, the Mayor of London is a key stakeholder in Heathrow and any expansion plan. To put it mildly, Sadiq Khan is not on board. This is doubly problematic for Reeves, as Khan is from her own Labour Party and before the election in 2024 was the highest-ranking elected official the Party had.
“I remain opposed to a new runway at Heathrow Airport because of the severe impact it will have on noise, air pollution and meeting our climate change targets,” he said.
“I will scrutinise carefully any new proposals that now come forward from Heathrow, including the impact it will have on people living in the area and the huge knock-on effects for our transport infrastructure.
“Despite the progress that’s been made in the aviation sector to make it more sustainable, I’m simply not convinced that you can have hundreds of thousands of additional flights at Heathrow every year without a hugely damaging impact on our environment.”
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