Heathrow north-west runway: economic benefits
Published 25 October 2016
© Crown copyright 2016
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This publication is available at https://www.gov.uk/government/publications/heathrow-airport-expansion-economic-benefits/heathrow-north-west-runway-economic-benefits
The initial draft Airports National Policy Statement consultation closed in May 2017. This information is no longer current.
A new north-west runway at Heathrow will deliver up to £61 billion of benefits over 60 years to passengers and the wider UK economy and create thousands of local jobs and apprenticeships.
Economy
Based on the Airports Commission’s analysis, the government estimates that the benefits to passengers and the wider economy would be up to £61 billion over 60 years.
Passengers
A new north-west runway at Heathrow would deliver reduced fares, fewer delays, greater resilience and more daily destinations, relative to no expansion.
The Airports Commission found that the costs of construction would be unlikely to increase passenger air fares. This is because demand for flights currently outstrips supply, which allows airlines to charge higher fares. A new runway would increase supply, and allow greater competition between airlines. This would give passengers greater choice, and put downward pressure on air fares.
Routes
A new runway will mean more daily flights to emerging markets in Asia and South America.
Freight
Heathrow carries more freight by tonnage than all the UK’s other airports combined (1.5 million tonnes in 2015). It also accounts for 31% of the UK’s non-EU trade by value in 2014.
Around 95% of Heathrow’s freight is transported in the hold of passenger planes. Expansion would provide more international passenger services and the potential to carry more freight.
Jobs
Separate analysis by the Department for Transport and the Airports Commission suggests that an additional runway at Heathrow could deliver up to 77,000 additional local jobs by 2030.
This will help the airport to deliver its promise of creating 5,000 new apprenticeships by 2030, doubling the current total to 10,000.
Heathrow has pledged that these new opportunities would have the potential to drive down youth unemployment in the 5 boroughs nearest to the airport: Ealing, Hillingdon, Hounslow, Slough and Spelthorne.