General Atomics

‘The economic case stacks up’: UK chancellor renews government backing for Heathrow expansion

Former Chancellor Rachel Reeves decided in January 2025 to back a third runway as part of Labour's plans to boost economic growth.

Heathrow Airport
Photo: Heathrow

Chancellor John Healey has restated the UK government’s backing for the expansion of London Heathrow Airport, insisting that the economic case for a third runway “stacks up” despite continued opposition to the project.

Speaking in the House of Commons, Healey defended the government’s decision to proceed with the long-delayed expansion after Liberal Democrat MP Sarah Olney challenged him over the proposed runway.

Government backs Heathrow after ‘years of indecision’

“After years of delay, years of indecision, years of often vexatious challenge, we have given the go-ahead to this project quite simply because the economic case stacks up and will help bring growth,” Healey said.

His comments reaffirm the government’s position on Heathrow expansion following former Chancellor Rachel Reeves’ decision in January 2025 to back a third runway as part of Labour’s plans to boost economic growth.

Reeves said at the time: “I have always been clear that a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change.

“And now the case is stronger than ever because our reforms to the economy – like speeding up our planning system, and our strengthened plans to modernise UK airspace – mean the delivery of this project is set up for success.”

London, England - November 2018: British Airways Boeing 777 jet (registration G-VIIJ) flying low over houses to land at London Heathrow Airport.
Photo: Cerib / stock.adobe.com

Expansion in numbers: £49 billion, 150 million passengers per year

The proposed expansion would add a third runway to Heathrow and increase the airport’s capacity to as many as 756,000 aircraft movements and 150 million passengers a year, according to plans supported by the government.

The wider project is currently estimated to cost around £49 billion, including the runway, terminal expansion and associated infrastructure. 

The cost has become a major point of contention with airlines, which have warned that higher airport charges could ultimately be passed on to passengers.

International Airlines Group, the parent company of British Airways, has called for the cost of the runway scheme to be capped, while Virgin Atlantic has warned over the project’s costs.

London Heathrow
Photo: Cerib / stock.adobe.com

The airlines have also called for affordability to be added to the government’s existing tests for the project, alongside its impact on climate change, noise, air quality and economic growth.

Heathrow argues that additional capacity is needed to relieve congestion at the UK’s main hub airport. 

Opposition remains from environmental groups 

While moves to expand to Heathrow have progressed under the Labour government, opposition to the project remains – both politically and from environmental groups. 

London Mayor Sadiq Khan has maintained his opposition to a third runway, arguing that the case for expansion has not been adequately established and that the environmental and infrastructure consequences for London remain serious. 

His latest concerns have focused particularly on aircraft noise, night flights and the impact of increased passenger numbers on the capital’s transport network.

Friends of the Earth takes an even broader view, arguing that Heathrow expansion is fundamentally incompatible with the UK’s climate commitments.

In July 2026, the environmental organisation published an extensive assessment entitled ‘15 reasons why Heathrow airport expansion is wrong.’ It argues that the Government’s own figures do not justify the project economically or environmentally. 

Heathrow third runway
Photo: Heathrow Airport

Friends of the Earth estimates that the economic benefit would amount to around £2 billion by 2056 (the equivalent to only 0.05 per cent of GDP) and says this would be outweighed by the project’s social and environmental costs.

The organisation also disputes the argument that Heathrow expansion would spread prosperity throughout Britain. It says at least three-quarters of the projected economic benefit would go to London and the Southeast, while some jobs could simply be displaced from other regions.

Related

Syensqo supports NOEMI’s bid for the world’s first certified electric amphibious seaplane
NOEMI's all-electric amphibious seaplane.
Syensqo supports NOEMI’s bid for the world’s first certified electric amphibious seaplane
NOEMI Aerospace will use Syensqo advanced composites and adhesives to support the lightweight airframe of its pioneering all-electric amphibious aircraft.
Aerospace Member News

10 Sep 2026

Winter hydrogen trial at Exeter Airport strengthens case for lower-carbon ground operations
HyGPU trial Exeter Airport
Winter hydrogen trial at Exeter Airport strengthens case for lower-carbon ground operations
Exeter Airport’s latest hydrogen trial found a converted dual-fuel ground power unit could operate safely in winter, reducing diesel burn and carbon emissions.
Aerospace

10 Sep 2026

Ontic acquires compass specialist SIRS Navigation
SIRS Navigation compass
Ontic acquires compass specialist SIRS Navigation
The acquisition of the Kent-based precision magnetic compass manufacturer, adds a trusted brand to Ontic's expansive portfolio of critical aviation components.
Aerospace Member News

10 Sep 2026

US private equity group agrees £1.1bn takeover of key UK defence supplier
Self sheilded storage box for contaminated nuclear waste
US private equity group agrees £1.1bn takeover of key UK defence supplier
Cerberus Capital Management has agreed a £1.1bn acquisition of Goodwin engineering businesses tied to sensitive UK defence, nuclear and naval supply chains.
Defence

11 Sep 2026

G2E consortium awarded Edgewing contract to develop GCAP sensing and comms
GCAP
G2E consortium awarded Edgewing contract to develop GCAP sensing and comms
As a strategic enabling partner to Edgewing, the GCAP Electronics Evolution (G2E) consortium will provide sensing and communications capability for the Global Combat Air Programme (GCAP), delivering information superiority for the next-generation fighter aircraft in future complex and contested airspace.
Defence Member News

11 Sep 2026

UK spends nearly £30m on SpaceX satellite services as military shifts to Starshield
Starlink already offers unparalleled end-to-end user data encryption. Starshield uses additional high-assurance cryptographic capability to host classified payloads and process data securely, meeting the most demanding government requirements.
UK spends nearly £30m on SpaceX satellite services as military shifts to Starshield
The UK military operates around 1,000 SpaceX Starshield terminals after spending nearly £30m on Starshield and Starlink satellite communications.
Defence Space

11 Sep 2026

Skyrora completes hot-fire testing of advanced LEO engine
Skyrora engine test
Skyrora completes hot-fire testing of advanced LEO engine
Skyrora has conducted hot fire testing of its LEO engine at its Midlothian facility in Loanhead, demonstrating the potential of stronger, lightweight parts for future propulsion systems.
Member News Space

11 Sep 2026

UK spends nearly £30m on SpaceX satellite services as military shifts to Starshield
Starlink already offers unparalleled end-to-end user data encryption. Starshield uses additional high-assurance cryptographic capability to host classified payloads and process data securely, meeting the most demanding government requirements.
UK spends nearly £30m on SpaceX satellite services as military shifts to Starshield
The UK military operates around 1,000 SpaceX Starshield terminals after spending nearly £30m on Starshield and Starlink satellite communications.
Defence Space

11 Sep 2026

NewOrbit gains launch slot for first VLEO commercial mission
NEO1
NewOrbit gains launch slot for first VLEO commercial mission
Reading-based NewOrbit will conduct the first commercial mission on which any payload developer can fly, test and validate technology in Very Low Earth Orbit (VLEO), approximately 200-300km above the Earth.
Space

10 Sep 2026

MI5 chief warns next major threat may come from where the UK is not looking
MI5 Director General Ken McCallum
MI5 chief warns next major threat may come from where the UK is not looking
MI5 chief Sir Ken McCallum says the next major security shock may already be developing where intelligence agencies are not looking, 25 years after 9/11.
Security

11 Sep 2026

Barbara Supplee appointed CEO of Serco North America
Barbara Supplee
Barbara Supplee appointed CEO of Serco North America
Drawing on her vast experience of supporting some of the United States' most important defence and national security missions, Barbara will lead Serco's delivery of mission-critical programmes in North America.
MBDA opens Poland missile facility as UK defence partnership deepens
MBDA facility Czosnow, Poland
MBDA opens Poland missile facility as UK defence partnership deepens
In an initiative that supports the UK’s commitment to reinforcing NATO’s eastern flank by bolstering Polish air defences, a new facility built with British expertise has been opened in Poland.