Heathrow chiefs have intensified their campaign to persuade the new Government to back a third runway after Andy Burnham cast huge doubt over the scheme. The Prime Minister refused five times in a recent interview to support expanding the west London airport.
He previously argued that a bigger Heathrow could deprive regions outside London of crucial investment, and recently suggested increasing capacity at Manchester Airport might be a higher priority. Andy Burnham has refused to back a third runway at Heathrow.
Government stance and warnings
Sir Keir Starmer’s government had supported a third runway, with his Chancellor Rachel Reeves a vociferous supporter as she desperately sought to boost Britain’s economy despite hitting businesses with tax rises. But with Mr Burnham taking a different stance, Heathrow’s boss warned that its owners “cannot wait forever” for the PM to decide whether he backs its expansion proposals.
The airport also outlined what it says was widespread support including among Londoners for a third runway, as well as from regional airports, businesses, trade unions including the GMB, Unite and the TUC, and investors. However, polling underpinning some of its claims may raise eyebrows as it shows 80% of people in Richmond Park back a new runway, in a constituency where Tory Zac Goldsmith resigned as the local MP over the issue and current Liberal Democrat MP Sarah Olney strongly opposes the development.
Opposition and costs
Mr Burnham has stressed that the view of London could sway his position on Heathrow’s plans. London Mayor Lord Sadiq Khan is firmly against the new runway, which would increase the west London airport’s capacity to 756,000 flights and 150 million passengers a year.
The development, which is already estimated to cost £49 billion with terminal and other improvements, is believed to have been hit with years of delays. Airlines say it would be the most expensive new runway project ever and would involve moving the M25 at a cost of £1.5 billion.
Investors and timeline
Amid the row over the expansion blueprint, Heathrow chief executive Thomas Woldbye told the Financial Times that the London airport’s backers could reassess their plans if Mr Burnham does not give his commitment to the runway project soon. The airport hub’s investors, including the Qatar Investment Authority, Saudi Arabia’s Public Investment Fund and China Investment Corp, among others, reportedly must decide in the new year whether to submit a formal planning application for the runway.
In his interview with the FT, Mr Woldbye said: “Our shareholders would like to do this. They do think that things are taking a long time, and so far they have decided to be OK with that… But of course we cannot wait forever.” He added: “At some point in time we need a level of certainty. I think by the end of the year we’ll be looking and saying: ‘Let’s assess this, let’s take stock and see where we are.’”
Heathrow claims the new runway would unlock more than 100,000 jobs and £33 billion of private investment across the UK. However, critics of the scheme say that it is a huge exaggeration, citing the Government’s own figures. Ministers are hiring bankers for £3 million to tell them if the economic case for a third runway stacks up.
