Just weeks after the Chancellor backed a third runway, Heathrow is launching its largest investment programme in the airport’s history to upgrade and expand the ‘UK’s Gateway to Growth’ through 100% private funding
In a major address delivered at British Steel Scunthorpe, Heathrow CEO Thomas Woldbye responded to the Government’s strong support for expansion at Heathrow – including a third runway. Woldbye announced the largest private investment programme in Heathrow’s history and confirmed the airport is developing proposals for a third runway to share with Government by summer.
Woldbye said: “This privately funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the Chancellor's call to get Britain building."
And that: "A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to Government this summer. Ahead of then, as part of a phased expansion programme and supported by the Government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability."
"This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth.”
Full details of the investment programme, phasing, and the pathway to a third runway will be part of Heathrow’s initial proposals submitted to Government this summer, but plans confirmed new investment in:
Terminal infrastructure: Heathrow will work with airlines and the regulator to finalise plans to invest in the capacity of Terminal 2 and make changes to optimise and increase passenger capacity in Terminal 5.
Improving customer experience and punctuality: Reconfigure and improve the layout of the airfield, increasing the number of aircraft stands, to improve resilience and punctuality.
Local transport connections and sustainable travel: The investment programme includes plans to further improve bus and coach connections to encourage sustainable and active travel options and benefit our local communities.
Sustainability: New infrastructure will have improved environmental credentials and will use more sustainable sources of power, supporting the ambitious targets set out in Heathrow’s Connecting People and Planet sustainability strategy.
This privately funded programme to transform Heathrow’s current infrastructure, with early tangible benefits felt this year, will start with projects within the airport’s existing boundary and work towards a third runway.
The plans will help the airport become more efficient, more reliable and more sustainable for all passengers and airlines at Heathrow. These new investments build on the £2.3bn accelerated investment announced by Heathrow in December to improve service, resilience, passenger experience, and sustainability through multiple projects over the next two years.
Heathrow’s once-in-a-generation phased investment programme for airport modernisation and expansion will create transformational opportunities for UK businesses and industries, during this Parliament and beyond.
As a sign of its commitment to ensuring positive benefits nationwide, Heathrow also signed the UK Steel Charter at British Steel Scunthorpe. The charter aims to maximise supply chain opportunities for UK steel producers.
Industry Minister Sarah Jones said: “This investment is the latest in a long line of wins which our Plan for Change has helped deliver, and not only supports thousands of jobs but marks a major vote of confidence in our homegrown steel sector and this government’s Industrial Strategy. Driving demand for UK-made steel is a crucial part of our upcoming Steel Strategy, and by signing the Steel Charter Heathrow will give a huge boost to steelmaking communities across the UK and help us kickstart economic growth.”
According to the most recent study from Frontier Economics, a third runway could increase UK GDP by 0.43% by 2050. Over half, 60% of that boost, would go to areas outside London and the South-East. The project is supported by over 30 Chambers of Commerce and business groups up and down the country including the CBI, MakeUK, British Chamber of Commerce and the Federation of Small Businesses; airports including Newcastle Airport and Cornwall Newquay; and trades unions including Community Union, GMB, and BALPA.
To develop and finalise proposals to expand the UK’s only hub airport and largest port by value, Heathrow will now engage with key stakeholders including airlines and local communities.
In his address, as well as recognising the scale of the prize to be won, Woldbye commited that Heathrow’s plans will demonstrate that the project can deliver for the economy and the environment.
He said: “With strict environmental safeguards, expanding Heathrow will prove that the UK economy can be grown responsibly and deliver on commitments to future generations. This project can only go ahead if we meet the rules on noise, air quality and carbon that the Government sets out in the Airports National Policy Statement – it’s as simple as that. "
“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before."
“I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”
Gareth Stace, UK Steel Director-General, said: "Signing the UK Steel Charter is a vital commitment to strengthening Britain’s industrial backbone, ensuring our steel industry continues to support high-quality jobs, drive investment, and play a central role in the UK’s economic future."
"By prioritising UK-made steel in major projects, businesses can build a more resilient and sustainable supply chain, keeping value and expertise within the UK. Heathrow signing the UK Steel Charter is a major vote of confidence in UK steelmaking and British businesses full stop. With the airport embarking on its largest-ever private investment programme, this commitment unlocks significant opportunities for UK steel producers and supply chains to help deliver critical national infrastructure."
"Backing UK steel means backing UK jobs, innovation, and long-term industrial growth, ensuring the benefits of Heathrow’s expansion are felt nationwide."
Zengwei An, British Steel CEO, said: “We’re proud to be backing a third runway and the proposed expansion of Heathrow. Major developments like this, which require huge volumes of steel, demonstrate why the UK must have a strong and vibrant steel manufacturing sector. As Britain’s only manufacturer of heavy constructional steel sections, and rail, we have a critical role to play in helping this country meet its many infrastructure needs and look forward to working with Heathrow, other customers, and the UK Government, to support investments which grow the British economy. Our colleagues in Scunthorpe and Teesside have a distinguished history of supplying world-class products into projects like Heathrow’s expansion, and we are incredibly excited by the potential of today’s announcement and the signing of the UK Steel Charter.”
Sir Nic Dakin MP (Scunthorpe) said: “It's great to see Heathrow's commitment to the UK Steel charter today, which is a big vote of confidence in Scunthorpe steel. The UK is built on construction steel made here in Scunthorpe thanks to our world class workforce."
"When British companies like Heathrow forge partnerships with our steel industry, working families up and down the country benefit.”
Martin Vickers MP (Brigg and Immingham) said: “I am delighted that Heathrow’s CEO, Thomas Woldbye, has signed the UK Steel Charter, thereby highlighting Heathrow’s commitment to UK made steel. As many of my constituents will work at the British Steel site in Scunthorpe, or will have family or friends working there, this will be welcome news across my constituency. I am also pleased that Heathrow have specifically chosen the British Steel site to make a landmark announcement on the upgrading and modernising of the UK’s hub airport. This investment will provide welcome opportunities for supply chains across the UK, including in my own patch. As such, I wish Heathrow all the best in this endeavour.”
Anna Turley MP (Redcar and Cleveland) said: "Following the Government’s much-welcomed announcement in support of a new runway at Heathrow, it is now more important than ever that major infrastructure projects - like Heathrow’s expansion - that this new Labour Government is backing, invest in and utilise UK steel. Supporting our world-class supply chains and engineering hubs across the country, including in Redcar and Cleveland, will help secure high-skilled jobs, drive innovation and growth, and strengthen British manufacturing."
"By championing UK-made steel with a proper steel strategy that this new government will put in place, we can ensure a resilient and prosperous future for our industrial heartlands, including in Teesside and across the country."
Craig Beaumont, Executive Director at the Federation of Small Businesses, said: “Getting growth means moving forward with a strong plan for a third runway at Heathrow. Small businesses across the country will benefit - SME procurement to help build it, a step-change in global and domestic connectivity, a shot in the arm for tourism, and a major boost to exports and freight. Above all, if we can finally get a move on with the project after so much delay it will put a neon sign above the UK that we are open for business."
Roy Rickhuss CBE, Community General Secretary, said: "We welcome Heathrow's support for the UK Steel Charter and the airport's firm commitment to ensuring that the infrastructure required for the new runway will use steel made here in the UK. This is a generational opportunity to procure hundreds of thousands of tonnes of UK-made steel – boosting our steel industry and supporting high quality jobs across the UK. Through this work we can showcase the high-quality steel products made here in Britain to a global audience. It's important that we seize this opportunity and use it as a springboard to ensure that other major infrastructure projects on British soil utilise UK Steel."
"The benefits of the expansion at Heathrow won’t just be felt in London, but across the whole of the UK.”
Andy Prendergast, GMB National Secretary, said: “This is great news. An expanded Heathrow is crucial for our country’s future prosperity. The extra runway will create tens of thousands of good, union jobs, and benefit communities everywhere. GMB welcomes the prospect of a bigger, better Heathrow – now let's get on with it.”
