Heathrow airport has announced a multibillion-pound investment to expand two of its terminals as it prepares its proposal for a new runway, saying “the UK risks losing its status as a global trading hub” if the airport does not grow.
The upgrades will also include boosting the capacity of Terminals 2 and 5, reconfiguring the layout of the airfield, and improving bus and coach connections.
Rachel Reeves last month threw her backing behind the £20bn infrastructure project in an attempt to kickstart growth in the UK.
The chancellor hopes the project – which the government aims to complete by 2035 – will boost growth in Britain, as the economy teeters on the brink of recession.
Ms Reeves, who is fighting to save her job amid doubts over the direction of Britain’s finances, used a major speech on growth in January to indicate her support for the extra landing strip – despite previous opposition from a number of key Cabinet members.
Mr Woldbye confirmed plans to submit a third runway proposal to the government this summer, arguing that the privately-funded project is “critical for the country’s future economic success”.
“Heathrow is proud to answer the chancellor’s call to get Britain building”, he said.
“This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown.”
It comes despite deep splits within the Labour Party over the plans, with London mayor Sir Sadiq Khan previously saying he would consider joining a legal challenge if the government backed a third runway.
Energy secretary Ed Miliband has repeatedly expressed opposition to the plans in the past – once threatening to quit Gordon Brown’s cabinet over the proposal.
This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown
Thomas Woldbye, Heathrow
But he has now said he will “support what the government is doing” and abide by his collective responsibility as a government minister.
He also said the plans could still be compatible with the government’s net zero targets, despite concerns over significant increase in carbon emissions due to the added air traffic.
But the Heathrow chief executive insisted the project can be carried out responsibly because of “strict environmental safeguards”.
“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”, he said.
The government said the investment programme is expected to secure thousands of British steel jobs across the country by driving a significant increase in demand for UK-made steel.
The announcement – welcomed by the steel industry – comes just days after Donald Trump signed off on plans for 25 per cent tariffs on all steel and aluminium imports, sparking fear in the industry.
Mr Woldbye made the speech at British Steel’s Scunthorpe plant, which is the only facility making primary steel in the UK.
Terminal 5 – which opened in 2008 – required 80,000 tonnes of steel.
Detailed plans for the third runway are still being prepared.
The Department for Business and Trade said it welcomed a “major vote of confidence from Heathrow in its growth mission after backing a third runway.”
Industry minister Sarah Jones, who delivered a keynote speech at the launch event on Wednesday, said the proposal “not only secures thousands of jobs but marks a major vote of confidence in our homegrown steel sector and this government’s industrial strategy”.
Responding, Alex Veitch, director of policy at the British Chambers of Commerce, said: “Expanding airport capacity is a key part of accelerating economic growth – and today’s announcement is great news for British business.
“It is real show of support for domestic steel production and supply chains across the UK.”
UK Steel director general Gareth Stace added: “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.”
But campaigners described the planned announcement as “Orwellian”.
Paul McGuinness, chairman of the No 3rd Runway Coalition group, said: “How bizarre for the government to suggest supporting a project that hasn’t even submitted a planning application, and can’t be approved until well beyond this parliament’s lifetime, will kickstart economic growth.
“As for any construction or purchase of steel, that would be at least over half a decade away, and the project may yet prove uninvestable as several of Heathrow’s airline customers have averred.
“The costs of demolishing villages, diverting roads and rivers and tunnelling over the M25’s busiest junction, to increase Heathrow’s size by an area that is larger than Birmingham International Airport, promises to be inordinately expensive.”
