In a significant blow to Gatwick Airport's expansion plans, Chancellor Rachel Reeves has formally rejected a £2.2 billion proposal to construct a new mainline railway station directly serving the transport hub. The decision represents a major setback for the airport's owners who had championed the project as essential for increasing capacity and reducing journey times.
Funding Clash Over National Priorities
The proposed rail link, which would have created a more direct connection to London, faced rejection after the Treasury determined it did not represent value for taxpayers' money. Government sources indicate the funding would be better allocated to other transport infrastructure projects across the country, aligning with Labour's broader 'national infrastructure strategy'.
Gatwick's Expansion Ambitions Grounded
This decision deals a substantial blow to Gatwick's strategic development plans. The airport had positioned the rail upgrade as a cornerstone of its growth strategy, particularly following the recent approval to bring its standby runway into regular use. Airport executives argued that improved rail connectivity was crucial for handling increased passenger numbers efficiently.
Industry Reaction and Economic Implications
Business groups and aviation industry leaders have expressed disappointment, warning that the decision could hinder economic growth in the Southeast and affect the UK's international connectivity. The rejection raises questions about how the government will support airport infrastructure while pursuing its environmental and fiscal objectives.
What Happens Next?
Gatwick Airport management now faces difficult decisions about scaling back expansion plans or seeking alternative funding models. The government has suggested it remains open to private investment in the project, but without taxpayer support, the economic viability of the rail link remains uncertain.
