London Heathrow Airport submits £21bn third runway proposal promising growth, jobs and improved UK connectivity

Today (1 August), London Heathrow Airport (LHR) confirmed it has submitted a shovel-ready proposal to deliver an operational third runway for £21bn within a decade, provided the Government implements necessary policy changes and an appropriate regulatory framework. The 100% privately financed plan promises more choice, better value, and global reach for passengers, airlines and exporters. It aims to unlock at least 30 new destinations, serve up to 150 million passengers on up to 756,000 flights annually, and lower fares through increased competition.

Expanding Heathrow is expected to add 0.43% to the UK’s GDP, with 60% of benefits felt outside London and the South East, and increase the UK’s most valuable port by 50%. The project, based on years of engagement and research, would create jobs and supply chain spending this year, with planning permission targeted for 2029.

The proposal includes a north-western runway up to 3,500m, a new terminal T5X, expansion of Terminal 2, and three new satellite terminals. Investment totals £49bn: £21bn for the runway and airfield, £12bn for terminal capacity, and £15bn for modernising current infrastructure, including the closure of Terminal 3. The full investment would be delivered over coming decades.

The plan also proposes improved public transport with enhanced rail capacity, walking and cycling routes, a new road tunnel, parkways, and upgrades to the UK’s busiest bus and coach station. Heathrow commits to reaching net zero by 2050, with ongoing carbon reduction, increased use of Sustainable Aviation Fuel, noise reduction targets, and air quality compliance. Its noise footprint has reduced by 41% since 2006 and all air quality monitors meet limits.

Tens of thousands of jobs would be created during design, construction and operation, with 60% of supply chain spend going outside London and the South East. A community fund and continued local engagement are planned.

An appropriate regulatory framework is required to secure tens of billions in private capital. Heathrow highlights its track record of delivering major projects on time and budget, including Terminals 2 and 5. Government feedback is needed by September to meet the ambitious timeline.

Heathrow CEO Thomas Woldbye said: “It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity. With a green light from Government and the correct policy support underpinned by a fit for purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country. We are uniquely placed to do this for the country; it is time to clear the way for take-off.”

Heathrow plans to consult airlines, local communities, authorities and businesses from next year, with a planning application in 2028. Expansion is supported by Chambers of Commerce across the UK, trade unions, businesses and regional airports.

The Confederation of British Industry, British Chambers of Commerce, MakeUK, Federation of Small Businesses and Institute of Directors said: “The UK business community supports the expansion of Heathrow with a third runway, an investment in the nation’s future. The benefits are clear: for exporters, it opens up vital access to major and emerging markets; for visitors, it enhances global and domestic connectivity; and for businesses, it unlocks billions in private investment, strengthening supply chains, creating jobs, and driving skills across the country.”

Kenton Jarvis, CEO of easyJet, stated: “Expansion at Heathrow will provide consumer and economic benefits and represents a unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares for consumers.”

The Heathrow Business Coalition said: “The Heathrow Business Coalition firmly supports the proposal for a third runway at Heathrow. As representatives of the airport’s exporters, supply chain partners, and retailers, we have witnessed first-hand the advantages of a thriving, globally competitive hub. Expanding capacity at the UK’s busiest airport is essential to keeping British businesses at the forefront of international trade.”

The Scottish Chambers of Commerce and FSB Scotland added: “The Scottish business community endorses the development of a third runway at Heathrow, recognising it as a critical infrastructure investment with significant economic opportunities. This expansion will not only enhance Scotland’s connectivity to key international markets but also strengthen the UK’s position as a global trading hub. By facilitating greater trading access to emerging and established economies, we are empowering Scottish businesses to scale, export, and compete on the world stage, while driving inclusive economic growth across the country.”

Amy Smith, Interim Managing Director at Cornwall Airport Newquay, said: “Cornwall Airport Newquay supports infrastructure development that enables true regional connectivity. The proposed third runway at Heathrow has the potential to deliver meaningful hub access for regions like Cornwall – but only if there is a clear and sustained commitment to slot accessibility and affordability for regional carriers and regional routes. Direct and reliable connectivity to a UK hub is vital for Cornwall’s economy, inward investment, and the future of sustainable regional aviation.”

Today, Heathrow connects UK exporters to 92% of the world’s economy via direct flights. Expansion would add long-haul routes to growing economies and increase cargo capacity by 50%. Without action, the UK risks losing its global aviation hub status as European rivals expand.

Supporters believe this investment will keep the UK competitive, drive economic growth nationwide, and create thousands of skilled jobs.

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