Britain has endorsed Heathrow Airport’s £49 billion ($64 billion) expansion and upgrade plan as the foundation for adding a new runway, opting for this proposal over a cheaper rival bid, the government announced on Tuesday.
The decision builds on finance minister Rachel Reeves’ January pledge to deliver a third runway at Heathrow, a move aimed at stimulating economic growth and resolving decades of uncertainty over the airport’s long-term capacity.
The headline cost includes approximately £15 billion of upgrade work already in progress, while the new runway, adjustments to London’s orbital motorway, and construction of a new terminal are projected at around £33 billion.
This year, the government has shown strong support for airport infrastructure, approving regular use of an additional runway at Gatwick — the country’s second-largest airport — in September and backing a new terminal at Luton in April.
Heathrow’s proposal was evaluated alongside a competing bid from the Arora Group, which owns land and hotels near the airport. Arora priced its plan at under £25 billion, though that estimate excluded several associated costs.
GOVERNMENT SETS 2035 TARGET
Flights from Heathrow’s new runway are expected to begin in 2035, with planning approval required by 2029. The government said it chose Heathrow’s full-length runway proposal as the “most deliverable option” to meet these milestones.
A “swift and robust” policy review will refine the expansion plans to ensure alignment with the UK’s climate commitments, the government added, seeking to head off legal challenges related to air quality and emissions that have previously stalled progress.
Heathrow — owned by France’s Ardian, the Qatar Investment Authority, Saudi Arabia’s Public Investment Fund, and others — welcomed the government’s backing. However, it stressed the need for both the aviation regulator and the government to confirm the regulatory framework by mid-December to prevent any potential delays.
