Politics may stand in the way of economics when it comes to airport expansion
Share:
It is no surprise to see a government that claims to be committed to making economic growth a priority giving the green light to expansion of Gatwick Airport and Luton Airport. Nor, for that matter, would it be a surprise for a third runway at Heathrow Airport to be given the go-ahead by Sir Keir Starmer's government - particularly as Rachel Reeves, the chancellor, told the London Evening Standard in July last year that she had "nothing against expanding airport capacity... I want Heathrow to be that European hub for travel".
Put in purely economic terms, airport expansion is a no-brainer. Money blog: Trump's cryptocurrency crashes as critics call it worthless. The economic case. The independent commission led by Sir Howard Davies, the former chairman of NatWest and published as long ago as July 2015, concluded that "expanded airport capacity is crucial for the UK's long-term prosperity".
Gatwick, according to a report prepared for the airport by the independent economic consultancy Oxera, generated £5.5bn for the economy in 2023 and supported more than 76,000 jobs. Chancellor swerves question over 'catastrophic' Heathrow runway expansion plans.
Heathrow Airport reveals record year for passenger numbers - prompting climate warning from 'speechless' campaigners. Passengers at UK airports - including London Gatwick, Heathrow and Manchester - face disruption and delays due to fog. The airport's owner estimates that expanding it to take annual capacity to 75 million by the mid-2030s, up from the £46.5m it hit in 2019, would create around 14,000 jobs and generate an extra £1bn a year in economic benefits.
