Potential London airport expansion to be outlined in UK growth agenda?

January 22, 2025

As first reported by Bloomberg, the UK government is apparently preparing to approve expansions to three London airports; a potentially controversial move highlighting the need to advance growth and stimulate economic development whilst balancing environmental considerations.
Citing people familiar with the matter, Bloomberg wrote that ministers are apparently set to “publicly signal support” for a third runway at Heathrow, authorise plans to bring Gatwick’s second runway into full-time use, and increase capacity at Luton – with Chancellor of the Exchequer Rachel Reeves “considering announcing some or all of the decisions in a speech about growth due to take place later this month”.
Speaking in the House of Commons yesterday, Reeves declined to address the rumours, stating: “I’m not going to comment on leaks”. Aerospace Global news has contacted the cabinet office for comment. Among the various environmental groups voicing their opposition to expansion plans, Mayor of London Sadiq Khan also remains a long-standing opponent of airport expansion, with a spokesperson confirming: “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.”
The development of a third runway at London Heathrow is perhaps the most high-profile of the prospective developments, having received approval from former Prime Minister Theresa May in late 2016 and subsequently subject to extensive delays and legal challenges. A Heathrow spokesperson has previously highlighted that as the “best-connected airport in the world,” the facility already enables over £200 billion of British trade annually.
However, with capacity full – and the airport recording 83.9 million passengers in 2024, an all-time high – the airport is “also looking at potential options to deliver a third runway at Heathrow in line with strict tests on carbon, noise and air quality”. No development consent order has yet been submitted by the airport.
CEO of London Gatwick Stewart Wingate cautioned that despite the airport “already contributing over £5.5 billion to the UK economy… unless we can access greater airport capacity, the UK will miss out on opportunities”. He added that “bringing [Gatwick’s] northern runway into routine use, through a £2.2 billion privately financed, shovel-ready investment” would create £1 billion a year in economic benefits. The project, which is due for government approval early next year, could be operational by the end of the decade.
London Luton Airport CEO concurred with the optimism expressed by the potential expansion proposals, commenting that “as a major driver of the UK economy, the expansion of London Luton Airport fully aligns with the Government’s sustainable growth agenda by making best use of existing infrastructure” – with approval to “unlock a new era of opportunity”.