Heathrow refutes government forecast of economic expansion benefits

Heathrow has criticised the government’s analysis of the expected boost to the UK economy from the airport’s planned expansion, which the Department of Transport said will be 0.05%.

On Friday (June 18), the government launched a 10-week public consultation on the framework for Heathrow’s third runway, marking a major milestone towards a final planning decision in 2029.

The draft Airports National Policy Statement – renamed the Heathrow Expansion National Policy Statement (Henps) – sets the criteria against which future planning proposals will be assessed.

The policy statement said “the scheme has the potential to provide between £29.2 billion to £42.4 billion of cumulative benefits to UK passengers and the wider economy by 2060”.

“External analysis, commissioned by the Department, has found that the scheme could add up to 0.05% to GDP in 2056,” it said.

The airport had previously promised that its expansion would deliver a 0.5% economic boost.

A Heathrow spokesperson said: “When the benefits of increasing UK trade by £150 billion a year and £33 billion of private capital to expand Heathrow aren’t captured by this economic assessment, it clearly doesn’t represent the full picture.

More: Government launches Heathrow third runway consultation with 2029 decision target

“The government itself is clear that the model is extremely limited and only designed for publicly funded projects.

“It doesn’t capture any value from increased trade, inbound tourism or massive private investment into UK supply chains, businesses and steel producers. It’s not fit for purpose and needs to be reformed to capture these clear benefits.

“Our expansion plans are widely supported by businesses and trade unions across the UK because they understand the transformative difference this project will make with improved prosperity and new job opportunities for their communities.”

Group chief executive at Heathrow, Thomas Woldbye, commented on the policy statement, saying: “The UK cannot realise its full economic potential without an expanded Heathrow, and this is an important step towards delivering the capacity the country needs.”