Latest news with #third runway
Telegraph
6 days ago
- Business
- Telegraph
Net zero may doom Heathrow's £49bn expansion plans
Political debate – and argument – over how and whether to expand airport capacity at London's Heathrow has encompassed virtually my entire working career. Acres of rainforest have been consumed, accommodating the sheer volume of newspaper column inches that have been devoted to this seemingly never-ending saga. And all to no avail. Still, we seem no closer to a resolution. The economic case for a third runway has long been strong, but the political and financial obstacles have always been, and continue to be, formidable. I'd be amazed if it happens in my lifetime. Hope nevertheless springs eternal, and Heathrow is once again asking for the green light to take its £49bn plans for expansion forward to the planning application stage. There is also a rival proposal for a shorter and less expensive third runway from the hotel tycoon Surinder Arora, who is the largest owner of land in the Heathrow area. He claims to be deadly serious, even if he is suspected by some of a ruse to persuade Heathrow to buy him out. For the record, any such motive is denied, and with the backing of Bechtel, which has nearly 200 successfully completed airports to its name, he can scarcely be accused of frivolous intent. It is not at all clear that the full 2.2-mile runway planned by Heathrow itself is necessary, even for long-haul flights. Heathrow's record on delivering infrastructure on time and to budget is also abysmal. If Mr Arora can deliver some proper competition at a fraction of the price, it would be all for the good. Labour governments have long been more open to the idea of expansion at Heathrow than their Tory counterparts, if only because they have less to lose in constituencies likely to be adversely affected by it. Boris Johnson was so opposed that he pledged to lie down in front of the bulldozers to stop construction. While foreign secretary, he arranged to be conveniently out of the country on a trip to Afghanistan when a key vote sponsored by his own Government took place to give the go-ahead to a third runway. As I say, Heathrow expansion has long generated far more in the way of good copy than meaningful progress. In any case, a third runway fits neatly into Labour's ambitions to be the party of 'the builders, not the blockers'. If not a spade is turned over the next four years, that boast too – like much else in Labour's policy agenda – would be exposed as so much hot air. If Labour is as good as its word, then the bulldozers could be on site within a year or two, Heathrow claims. Its plans are already 'shovel-ready'. Is it finally 'chocks away', then? For true believers in Britain's continued ability to build big infrastructure, it would be nice to think so. But this is a project cursed by disappointment, and I'll believe it when I see it. Unfortunately for the airport's backers, there is a further consideration beyond the say-so of ministers that threatens to floor all such grand designs: are they compatible with the Government's separate net zero commitments? This matter appeared to be settled once and for all by a Supreme Court judgment nearly five years ago that dismissed an application by Friends of the Earth and others, including Sadiq Khan, the Mayor of London, to have the proposal declared unlawful on environmental grounds. The dismissal occurred slap bang in the middle of the pandemic – when many seriously questioned whether Heathrow had a future at all, let alone whether there would be sufficient demand for a third runway – so nobody took much notice of it at the time. It appeared almost entirely irrelevant. But passenger numbers have recovered sharply since then, and the airport is once more full to bursting. What gives the environmental issue new legs is that though there may be space within net zero commitments for one more runway in London and the South East, it is questionable whether they would tolerate more than one. The Government has nonetheless announced what is in essence a free-for-all. Anyone who wants to build a new runway is now free to submit their planning application, apparently confident in the view that it will be approved. Rival proposals include a second runway at Gatwick. A number of other UK airports also hope to significantly increase capacity using existing facilities. This 'let them all have planning permission' approach would be all very well but for one rather important fact: the Government's almost religiously held commitment to net zero would struggle to accommodate the collective totality of all this extra capacity, even if the demand for it exists. John Gummer, a former chairman of the Government's Climate Change Committee (CCC), has already said as much. The Airports Commission, which recommended giving the go-ahead to a third runway at Heathrow, also said that accommodating a second additional runway within the CCC's plans for meeting net zero would be extremely challenging. Great strides are admittedly being made in aircraft efficiency, and there is much promise in bio-aviation fuel as a way of reducing the industry's carbon footprint. Even so, Heathrow will find it hard to impossible to secure the finance for its objectives as long as the possibility exists of significant capacity expansion elsewhere. The same would apply to Gatwick, which would similarly struggle to secure the finance for a second runway as long as Heathrow persists with its ambitions. A kind of stalemate is threatened, where the possibility of too much capacity might lead to no additional capacity at all. No one will want to invest in Heathrow or Gatwick as long as they think use of the new runways might be restricted on environmental grounds. The dilemma highlights a wider truth about Labour's ambitions for economic growth. What level of economic development is compatible with the Government's separate pursuit of net zero by 2050? Are the two not in direct conflict with one another? That question has already been answered with regard to further development of North Sea oil and gas. It's being stopped on environmental grounds, never mind the cost to GDP, jobs and tax revenues. Of course, the quid pro quo is meant to be a veritable boom in the construction of a spanking new renewables infrastructure. Sadly, this has yet to show up in the GDP data, perhaps because so much of the enabling kit is being imported from China and Europe, rather than supporting jobs and growth here in the UK. Outsourcing our energy-intensive manufacturing to the likes of China works wonders in getting the UK's emissions down, but it doesn't help the wider global picture on emissions one bit. We can only hope that the same wonky thinking doesn't infect the UK's approach to airport expansion, but that's the way it's going.
Yahoo
01-08-2025
- Business
- Yahoo
Heathrow CEO: Third runway could lower airline ticket prices
Heathrow Airport CEO Thomas Woldbye says a third runway could lower airline ticket prices, as passengers will have more choice.
Telegraph
31-07-2025
- Business
- Telegraph
Starmer takes on Khan in battle over Heathrow's third runway
Sir Keir Starmer is preparing to face down Sir Sadiq Khan and Labour backbenchers to force through a third runway at Heathrow. The west London airport has unveiled the details of its long-awaited £50bn expansion plan, which it said could lift capacity by 80pc to 150m passengers a year. The proposals have the support of the Prime Minister and the Chancellor, who believe airport expansion is essential to boosting Britain's growth. However, the plans have provoked a backlash from Sir Sadiq, who has long opposed a third runway, and some Labour backbenchers. The Mayor of London said on Thursday that airport expansion was not compatible with net zero. Ministers fear Sir Sadiq could launch a legal challenge that would delay expansion by years and add to costs even if it proved unsuccessful. The Prime Minister is prepared to use new laws to block Sir Sadiq from turning to the courts in a bid to get spades in the ground at Heathrow before the end of this parliament. Whitehall sources signalled they were looking at legislation that would stop the Mayor from dragging the decision through the courts. This includes planning reforms announced earlier this year to end the 'challenge culture' that Sir Keir said had delayed many vital infrastructure projects. 'We are looking at introducing legislation to curb the ability of campaigners to use judicial reviews to block infrastructure projects,' said one government source. It follows decades of opposition from environmental campaigners to a third runway at Europe's busiest airport. A source said ministers were preparing for criticism from within Labour. Sir Sadiq said: 'I remain unconvinced that you can have a new runway at Heathrow, delivering hundreds of thousands of additional flights every year, without a hugely detrimental impact on our environment.' The Labour Mayor did not say whether he would seek a judicial review once the plans were formally lodged but warned that he would 'be keeping all options on the table in how we respond.' John McDonnell, Labour's former shadow chancellor, whose Hayes and Harlington constituency would be affected by the proposals, vowed to fight Heathrow expansion 'all the way'. Mr McDonnell said he was already in talks with leaders from other London boroughs about mounting a legal challenge and had 'put money aside' for a long court battle. 'I think it's inevitable there'll be legal action,' he said. 'We've consistently opposed it, and every time we've been to court on this issue, we've won.' Rachel Reeves was largely responsible for reviving the third runway project as part of her push for growth, and allies of the Chancellor said the expansion plan had her 'full-throated' support. In a rebuke to the Mayor, a source said Ms Reeves would do 'what it takes to deliver a third runway'. 'The Chancellor is determined Britain remains the best connected place to do business,' the source said. Ms Reeves has previously stated she wanted 'spades in the ground' by the next election and planes using the runway by 2035. The Chancellor said the new proposals submitted by Heathrow showed Britain was 'one step closer to expanding our biggest airport' in a move she said would 'boost investment in Britain, increase trade for businesses, and create up to 100,000 jobs.' Heathrow's £49bn plan will see a new runway constructed to the north-west of the airport, which will extend over the M25. Two new terminal buildings will be built and existing facilities expanded. The number of annual flights would jump from 480,000 today to as many as 756,000. Heathrow bosses said the new 2.2-mile landing strip would lift capacity to 150 million passengers a year, almost 80pc more than the number who used the airport in 2024. Construction will start as early as 2029, with the runway operational by 2035, though the full expansion of the terminals could take until 2060. The runway itself is projected to cost £21bn. The new terminals would cost £12bn and the modernisation of the existing ones some £15bn. The project will involve the destruction of about 750 homes in the area and the construction of a new section of motorway between junctions 14 and 15 of the M25. Heathrow has said expansion would boost UK GDP by almost 0.5pc by 2050. The plans revive those approved by Parliament in 2018, which means they may not face a further Commons vote unless the Government decides to deviate significantly from that blueprint. It also makes it less likely that the runway will face opposition from within the Cabinet. Heidi Alexander, the Transport Secretary, said: 'I am pleased to have received the initial Heathrow expansion proposals – a significant step towards unlocking growth, creating jobs, and delivering this vital national infrastructure to drive forward our Plan for Change. 'We'll review proposals over the summer and move quickly to progress this transformational project.' Ed Miliband, the Energy Secretary, previously opposed Heathrow expansion but more recently insisted it would be 'ridiculous' to resign over the issue. He said the Government's position was that airport expansion could go ahead so long as it was compatible with the UK's legal-binding carbon budgets. It is understood that this position remains unchanged. The latest budget, published by the independent Climate Change Committee earlier this year, did not explicitly rule out airport expansion. However, it did say that the aviation industry's emissions – which primarily come from aircraft exhausts – needed to fall by 17pc between 2023 and 2040. It means Heathrow must set out ways to reduce the emissions of aircraft that use the hub in order to argue that a third runway is compatible with net zero. In its report, the Climate Change Committee said the aviation sector could lower emissions through greater investment in green technologies such as sustainable aviation fuels, hydrogen fuel cells or electric aircraft, or by reducing demand for flying. Another potentially contentious element of the plans is its impact on the M25, the country's busiest motorway. Heathrow's plans call for the M25 to be diverted into a tunnel at a cost of £1.5bn so that a full-length runway can be built above it. Airport bosses insisted this would not cause disruption to motorists. A new section of road 130 meters west of the existing M25 would be built in its entirety. Vehicles would then be diverted onto the new section at an agreed time so that the current M25 could be closed and the runway extended towards the east. Thomas Woldbye's Heathrow's chief executive, said: 'It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity. 'With a green light from [the] Government and the correct policy support underpinned by a fit for purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country.' Eighty-four million passengers flew from Heathrow in 2024, averaging 230,000 per day. This put it ahead of rivals including Amsterdam Schiphol, Frankfurt and Paris Charles de Gaulle. However, these airports, which have up to six runways, continue to threaten Heathrow's status as Europe's main airport hub. Supporters of a third runway say expansion is needed to support Britain's global trade ambitions. The plan submitted to the Government on Thursday is not the only proposal for how to build a third runway. Hotel tycoon Surinder Arora, who is one of the biggest landowners at Heathrow, earlier this week unveiled an alternative proposal that he claimed would be cheaper and avoid the need to rebuild the M25. Heathrow argues that the motorway would need to be redeveloped regardless to handle the extra traffic expected from expansion of the airport. It currently has no rail connections to the west, with the Elizabeth Line and Heathrow Express services terminating there, and will not be served by HS2.
