UK government approves Heathrow Airport’s £49bn expansion plan despite cost concerns and environmental objections

The UK government has backed London Heathrow Airport’s (LHR) £49bn expansion and upgrade plan as the basis for building a new runway, choosing it over a cheaper rival proposal. The decision follows finance minister Rachel Reeves’ pledge in January to build a third runway to boost economic growth and end decades of uncertainty over the airport’s future. The overall figure includes about £15bn of already planned upgrade work, while the cost of constructing the runway, re routing the M25 and adding a new terminal is around £33bn. Heathrow’s proposal was selected ahead of a rival scheme from the Arora Group, which owns land and hotels near the airport and had estimated its plan at under £25bn, excluding some costs.

The government has shown strong support for airport projects this year, approving the regular use of an additional runway at London Gatwick Airport (LGW) and backing a new terminal at London  Luton Airport (LLA). Heathrow, west of London, is Europe’s busiest airport and operates at full capacity, with two runways compared with four at Paris Charles de Gaulle and Frankfurt, and six at Amsterdam Schiphol. The target for flights from the new runway is 2035, with planning consent required by 2029. Ministers said Heathrow’s full length runway was both the “most credible and deliverable option” and the “most deliverable option” to meet deadlines.

Transport secretary Heidi Alexander said the choice would enable swift progress towards planning permission by 2029, provided the scheme met the government’s four tests on environmental, economic, noise and air quality considerations. She said Heathrow’s proposal was more deliverable due to the maturity of its plans, including moving and rebuilding the section of the M25 that would sit beneath the runway. She said the Arora alternative, based on a shorter runway that would not require motorway relocation, would still have significantly affected the M25 and required the purchase of more homes.

Heathrow welcomed the decision, saying expansion would deliver “more connectivity, increased trade, improved passenger experience and a huge economic boost”, but called for “definitive decisions” on regulation from the government and the Civil Aviation Authority. Airlines such as IAG and Virgin Atlantic expressed concern that Heathrow’s already high charges could increase. Environmental groups said expansion is incompatible with climate commitments. Friends of the Earth said the scheme was “the equivalent of bolting an airport the size of Gatwick on to Heathrow” and “a reckless gamble with our future”.

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