Heathrow expansion debate keeps £33bn runway project in focus

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Heathrow expansion debate

Highlights

Heathrow's £33bn third runway project remains uncertain as Prime Minister Burnham withholds explicit support, pending a review of recent consultation responses.
Heathrow CEO Thomas Woldbye warns that without Number 10 backing this year, investors may reassess and the project could face planning and legal obstacles.
Delays have pushed the earliest partial opening for the runway to 2039, with Heathrow claiming over 100,000 jobs, GDP growth, and 60 per cent of economic benefits outside London.

Government review and political signals

As reported by the Financial Times, Healey told reporters in Bangkok that airports across Britain have been a major source of jobs and growth, and said the case for a third runway at Heathrow "has always been a case for growth." He said the formal consultation has closed, the transport department is reviewing responses, and further decisions and announcements will follow.

Healey's intervention comes as the future of the £33bn project remains uncertain under Burnham, who has avoided stating clear support since taking office. Asked earlier this month about Heathrow expansion, Burnham said the views submitted through the consultation must be taken seriously and that it would be wrong to move immediately to a decision.

The prime minister's caution marks a contrast with predecessor Sir Keir Starmer and former chancellor Rachel Reeves, who made Heathrow expansion a central part of their growth strategy. A Number 10 official says Burnham's thinking on the airport has not changed and that the government still needs to assess the consultation responses.

Investment timetable and economic stakes

Heathrow has warned that it will not move ahead with a planning application without explicit backing from Number 10. Chief executive Thomas Woldbye tells the Financial Times that the project needs overt support from Burnham by the end of this year or investors would need to reassess the scheme.

Without prime ministerial support, the airport is likely to face a more difficult route through the planning and legal processes needed before construction can begin. The proposal is also opposed by environmental campaigners and by London's Labour mayor, Lord Sadiq Khan.

Heathrow argues the runway would create more than 100,000 jobs, raise GDP and spread 60 per cent of the economic benefit outside London. Reeves revived the expansion plan in 2025 after it had been paused by Heathrow, setting out a timetable for construction to start by 2029 and for the runway to become partly operational by 2035, but delays have already pushed Heathrow's earliest opening estimate to 2039.

Healey is speaking during IMF and World Bank meetings in Bangkok on Thursday, where he also points to stronger public and private investment and signs of rising productivity. He says the task of the coming Budget is to reinforce the drivers of firmer economic growth.

Our earlier article on the UK’s inheritance tax reforms explained how the tighter regime on business property relief is increasing succession pressures on family-owned companies. We noted that business groups warn the changes could curb investment and hiring, and may even push more firms toward asset sales or private equity ownership as they set aside cash for future tax bills.

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