Chancellor Rachel Reeves has supported the expansion of Britain’s London Heathrow Airport and plans to create a third runway which could be operational by 2035, after years of debate.
Last month, Heathrow Airport CEO Thomas Woldbye said a proposal for a third runway would be submitted this summer. His comments came shortly after the government threw its weight behind the project citing its potential to boost trade and economic growth.
Being claimed to boost the United Kingdom's infrastructure and economy, the third runway would generate over 100,000 jobs, connect the UK to emerging global markets, also create new growth opportunities.
In January 2025 the government said it would support proposals for a third runway at Heathrow airport. The Chancellor of the Exchequer, Rachel Reeves, said:
"a third runway at Heathrow would unlock further growth, boost investment, increase exports, and make the UK more open and more connected as part of our Plan for Change."
However, Heathrow Airport is looking for ways to reduce costs of its expansion plan, including whether to build a shorter third runway, the Financial Times reported on Saturday, citing people familiar with the matter.
The major airport in United Kingdom and Europe’s busiest, is considering all options before making a final decision, the report said.
At this moment, the airport’s two runways (only two parallel runways running east–west) are full and it can only add passengers when airlines fly larger planes. European competitors Paris-Charles de Gaulle and Amsterdam Schiphol have four and six runways, respectively.
One option would be to proceed with the expansion to the northwest, but with a shorter third runway to avoid diverting London’s M25 motorway through a tunnel, the report added.
The London mayor Sadiq Khan claims that Heathrow, which is privately owned, was “unwilling” to foot the bill for the changes to the transport system that would be needed to build a third runway.
These include diverting the M25 motorway into a tunnel under the new runway, re-routing the A4 and funding more trains for the Elizabeth line, Piccadilly line and a Southern rail link.
But a Heathrow spokesman says that the mayor was incorrect, and that the airport “would fund the changes to public transport that are needed for the project”, and the investment would be “spelled out in black and white” once it formally submitted an application to expand.
Heathrow’s expansion will an increase in the number of flights from 480,000 to 720,000 per year, which will roughly equ\te to serve around 140 million passengers annually. Heathrow Airport is currently operating very close to full capacity, over 42.7 million passengers departing from the airport last year.
Heathrow's CEO, Thomas Woldbye, confirmed that the airport plans to submit detailed proposals for the third runway to the government by the summer of 2025. This initiative is part of a broader, privately funded program aimed at upgrading existing infrastructure and laying the groundwork for the new runway.
The airport aims to have the third runway operational by 2035. However, industry experts express skepticism about this timeline due to the project's complexity and potential legal and environmental challenges.
Environmental groups, concerned about increased carbon emissions and noise pollution, oppose the airport expansion. As per them, the additional flights could significantly impact the UK's climate commitments.
Organizations like Friends of the Earth and Greenpeace UK argue that the expansion will significantly increase carbon emissions, making it harder for the UK to meet its climate commitments.
Building a third runway at Heathrow airport would wipe out the environmental benefits delivered by the Ulez, London mayor Sadiq Khan has warned.
Ultra Low Emission Zone (Ulez) is an area in London, England, where an emissions standard based charge is applied to non-compliant road vehicles.
Heathrow boss said the airport's expansion plans will be carried out with "strict environmental safeguards"
"This project can only go ahead if we meet the rules on noise, air quality and carbon... it's as simple as that," he added.
In January 2025, Chancellor Rachel Reeves announced the UK government's backing for the third runway, emphasising its potential to bolster economic growth and enhance the UK's global connectivity.
French private equity firm Ardian increased its stake in Heathrow to 32.6% by acquiring an additional 10% share. This investment reflects confidence in Heathrow's growth prospects, particularly with the planned expansion.
Airlines UK, the trade body for UK registered airlines, welcomed the government’s announcement on Heathrow expansion. The Leader of the Opposition, Kemi Badenoch, has said she would support expansion, as have a range of business groups and sections of the travel industry.
Some airlines and Heathrow-based businesses have expressed concern that HAL already charges them high fees (including landing charges and fees for parking and access to utilities) and that the costs of building a new runway will mean these fees may rise and be passed onto passengers and customers.
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