Heathrow’s plan for longer third runway chosen by government

Chancellor and transport secretary believe expanding London's hub airport will drive economic growth

Heathrow Airport’s plan to build a third runway by diverting the M25 motorway has been endorsed by the government. 

Heathrow is proposing to create a new runway up to 3.5km (2.2 miles) long, which will require a new road tunnel under the airport. According to the airport’s proposal, the runway and related infrastructure would be entirely privately financed.

The government has been looking at two proposals – the Heathrow Airport Ltd (HAL) scheme and one proposed by hotel tycoon Surinder Arora. 

The rival Arora Group bid envisaged a shorter, 1.7-mile runway farther to the east, which it said it could deliver for £23bn and would not require moving the M25. 

After requesting further information last month from the two promoters, the government decided that HAL’s proposal was the most deliverable option and the most likely to receive development consent application within this parliament. The government hopes for a planning decision by 2029.

Transport secretary Heidi Alexander said the government would now review the Airports National Policy Statement, needed for the runway to progress, with a full public consultation by July next year.

Alexander said: “Heathrow is our only hub airport which supports trade, tourism and hundreds of thousands of jobs, underpinning prosperity not only in the South East but across the UK.  

“Today is another important step to enable a third runway and build on these benefits, setting the direction for the remainder of our work to get the policy framework in place for airport expansion. This will allow a decision on a third runway plan this parliament which meets our key tests including on the environment and economic growth.  

“We’re acting swiftly and decisively to get this project off the ground so we can realise its transformational potential for passengers, businesses, and our economy sooner.”

Airports have been central to the Labour government’s economic vision. The government believes expanding Heathrow will attract international investment, boost Britain’s connectivity, and support economic growth. This year it gave approval to an expansion of capacity at both London Luton and London Gatwick. 

Chancellor of the Exchequer Rachel Reeves said: “We’re taking action where previous governments hesitated, and moving forward with Heathrow’s third runway to drive economic growth, international investment and better connections for our country.

“That means opening the door to new growth and opportunity with Heathrow expansion – creating over 100,000 jobs, boosting our economy, and giving businesses and communities the certainty they need to thrive.” 

Heathrow’s plan

Heathrow Airport Ltd (HAL) published its plans for expansion in August. The project includes:

• the new runway, which Heathrow says will increase capacity to 756,000 flights and 150 million passengers a year. It currently serves about 84 million
• a new terminal called T5X, expanding Terminal 2 and three new satellite terminals. It would close Terminal 3
• enhancement of local rail connections and improvements to Heathrow's bus and coach stations
• diversion of the M25, which would involve a new road tunnel under the airport, and widening the motorway between junctions 14-15.

It is anticipated that this project will cost around £49bn to deliver. The runway itself is expected to cost £21bn, with a further £12bn needed for associated infrastructure including new satellite terminals. Heathrow has promised a further £15bn investment in airport improvements.

The scheme is expected to be fully privately financed. It could mean up to 760 more planes in the skies around London every day, with the airport’s capacity increasing to 756,000 flights and 150 million passengers a year.

HAL is seeking reassurance that it will be allowed to increase its fees by enough to cover the cost of the planning application, which it says it will have to start very soon to meet the government's timetable. 

Updating the Airports National Policy Statement

The proposal will shape the review of the Airports National Policy Statement (ANPS), which is the framework within which the planning decision on expansion at the airport will be made, and any amendments to the ANPS will be subject to consultation next summer. 

Any amendments to the ANPS will be consulted on next summer after the transport secretary committed to completing the process three years faster than production of the policy statement in 2018.

Selection of the scheme to inform the remainder of the review does not represent a final decision on a third runway scheme or design. Any amendments to the ANPS will be subject to consultation and parliamentary scrutiny next year. Exact details such as the length of the third runway, layout, and associated infrastructure implications will continue to be considered throughout the remainder of the ANPS review. 

The government has been clear expansion plans must meet the UK’s legally binding climate obligations alongside balancing delivering economic growth as well as air quality and noise obligations.  

The independent Climate Change Committee will be consulted on as part of the review to ensure expansion is consistent with the net zero framework. 

The transport secretary has written to the committee requesting advice including on the role of aviation in achieving the UK’s carbon budgets and inviting feedback on proposed updates to the ANPS to ensure alignment with climate commitments. 

The ANPS review will consider airport expansion in light of new environmental and climate obligations and sets out the government’s criteria to consider future planning applications.  

The selection of HAL’s scheme at this stage follows an assessment of the promoter’s proposals. This has determined that HAL’s proposal includes expansion plans that are resilient and efficient. 

The government expects that an application for development consent for a Northwest Runway at Heathrow Airport will be brought forward by the promoter of the scheme, the airport operator, Heathrow Airport Limited, after the review of the Airports National Policy Statement.  

Rethinking airspace

The government is also planning to revise the use of airspace across the UK, in a bid to deliver quicker, quieter, and more efficient flights with lower emissions, reducing the sector’s climate change impacts.  

The newly published Airspace Design Strategic Objectives will mean that the Greater London airspace block will be given priority in airspace modernisation processes. 

London’s airspace – which sees over 1.1 million takes offs and landings a year – will be redrawn to ensure the capital’s skies are ready for more departures from a third runway from 2035. The Department for Transport suggests this will also benefit passengers after record levels of people flying over the summer, by shortening flight routes and improving resilience in the sector. 

A consultation has also been launched on simplifying the Air Navigation Guidance to set clear priorities, save carbon emissions, and ensure that people continue to have a meaningful say on airspace changes that affect them. 

Sustainable aviation fuel

The government is backing the development of green aviation through the Sustainable Aviation Fuel Bill. The DfT says the bill will ensure Heathrow contributes to the UK meeting its climate targets by providing economic security for the sustainable aviation fuel (SAF) market by guaranteeing a set price per unit for UK producers.  

An additional £63m is being invested to speed up construction on new SAF production plants, as the government goes further and faster to deliver growth and reach net zero. 

Responses 

The Heathrow expansion plan has, and will, face significant opposition from environmental campaigns, politicians and local resident groups.

A long-standing critic of proposals to expand Heathrow is Mayor of London Sir Sadiq Khan. Following the government announcement he said: “I want a better Heathrow, not a bigger one, particularly at a time where Gatwick's going to be expanded, Stansted is going to be expanded, City Airport's going to be expanded, Luton's going to be expanded. I’m unclear how you get a new runway at Heathrow and it doesn't cause environmental damage, noise being exacerbated.”

Tony Bosworth, climate campaigner at Friends of the Earth, said the plan would mean more noise and air pollution for local communities. “This government-backed plan is virtually the equivalent of bolting an airport the size of Gatwick onto Heathrow,” he said. That would mean more noise and air pollution for local communities.

“Expanding Heathrow simply isn't compatible with our legally binding climate targets, even if the government meets its hugely optimistic assumptions for emerging technologies, such as sustainable aviation fuels.

“The government has said that airport expansion can only go ahead if it meets tests on climate, noise and air pollution, and growth. Proving that will be an immense task – and breaking this promise will threaten their environmental integrity going into the next election. To avoid this, we need evidence-based decision-making, not a reckless gamble with our future.”

The Chartered Institute of Logistics and Transport (CILT UK) acknowledges the renewed momentum around Heathrow’s future, but says any expansion must be grounded in robust, up-to-date evidence and developed through a transparent and inclusive process.

Chris Tarry, chair of the CILT (UK) Aviation Policy Group, said: “We acknowledge the government’s decision, but we must not rush. The actual final form of the proposed expansion must stand up to proper scrutiny - not just politically, but economically, operationally and environmentally.

“All voices must be heard – airlines, regional airports, local communities, cargo interests – in a process that is genuine and transparent. A future Heathrow needs to  be affordable for users , sustainable, deliverable,  where there are demonstrable benefits the UK as a whole.”

Those supporting the expansion plan is The Arora Group, even though its proposal for a third runway was not selected. The property company said it accepted the government's choice and welcomed a decision to leave the option open for other firms to bid for the work. 

Despite its proposal being turned down, hotels tycoon Surinder Arora, who the chair of the Arora Group, said his company would continue to aim to build the runway. “The option for a promoter other than Heathrow Airport Ltd remains possible,” said Arora. “It’s imperative there is a clear and transparent process for selecting a promoter to ensure it best serves the interests of consumers. We are firm supporters of expansion, so will back its progress. We are now reviewing how our plans will be adjusted to the longer runway scheme.”

Jonathan Walker, Logistics UK’s head of infrastructure policy, said: “Heathrow Airport is the UK’s biggest port, handling 1.58 million tonnes of cargo in 2024, and the announcement of the winning third runway bid will provide growth opportunities for the UK economy in the long term. Today’s announcement is a welcome step towards the implementation of the project, but there are other hurdles to be cleared, including CAA approvals and planning reforms.  

“It is vital that this project is seen by government as an integral part of the ongoing development of an effective UK-wide logistics network, which will support and develop the effective supply chains that our economy needs.” 

John Dickie, chief executive of BusinessLDN, said: “The government’s backing for a new runway at Heathrow is vital to the UK’s competitiveness as an island trading nation. Expansion will give businesses better connectivity to overseas markets, boost inbound tourism and drive growth. 

“These plans must now move from the drawing board to delivery as quickly as possible to unlock the full benefits for the economy. That will require regulatory decisions to move at pace, including the Civil Aviation Authority setting out how the costs for this project can be recovered to unlock the investment needed to deliver it.”