Air, Freight News


Chancellor backs Heathrow Runway Three

[ January 29, 2025   //   ]

Chancellor of the Exchequer Rachel Reeves said on 29 January that the government would give full backing to a third runway at London Heathrow and was inviting proposals for the scheme to be brought forward by the summer.

In a widely-anticipated announcement, she criticised previous administrations for dragging their feet on the issue, and said that expanding the UK’s premier air gateway would deliver much needed economic growth and jobs, both in the construction phase and subsequently in the air industry.

However, the Reeves’ declaration is likely to be just the start of a long process including planning hurdles and possible legal challenges. London’s Labour Mayor, Sadiq Khan, said he was opposed to Heathrow expansion and would challenge the third runway, through the courts if necessary.

However, Heathrow chief executive Thomas Woldbye welcomed the Chancellor’s comments, saying: “Heathrow is the UK’s gateway to growth and prosperity. A third runway and the infrastructure that comes with it would unlock billions of pounds of private money to stimulate the UK supply chain during construction. With strict environmental safeguards, it would demonstrate that by growing our economy responsibly we can ensure our commitments to future generations are delivered.

“This is the bold, responsible vision the UK needs to thrive in the 21st century, and I thank the Government and Chancellor for their leadership. Successfully delivering the project at pace requires policy change – particularly around necessary airspace modernisation and making the regulatory model fit for purpose. We will now work with the Government on the expected planning reform and support Ministers to deliver the changes which will set us on track to securing planning permission before the end of this Parliament.”

Heathrow is the UK’s premier hub for cargo, most of it in the bellyholds of passenger aircraft. Alongside the long drawn out plans for a third runway, it also has plans to redevelop its ageing cargo infrastructure.

Director general of the British International Freight Association (BIFA), Steve Parker, said: “Although our members will still be wondering when any spade will hit the ground, they are ready to work with the airport authority on streamlining and improving services.
“Whilst we wait for a third runway, BIFA will focus on the airport’s cargo development. And on behalf of our members, BIFA is already working closely with the airport to support its ambitious plans to deliver a fundamental change to the way cargo operates at the airport, revealed last October. These plans would mean a significant redevelopment of the cargo estate set to commence in the next two to three years, as the airport looks to accommodate rising demand, modernise some ageing first-line cargo handling facilities and improve cargo flows and efficiency.”

At a seminar organised by the CCS UK User Group on 24 October, head of cargo, James Golding outlined tentative plans to redevelop the ‘Horseshoe Road’ area (Shoreham Road and Sandringham Road) area into a new Cargo West and a possible Cargo East area, fed by a remote truck parking area. The operation would be backed by a sophisticated IT system to ensure that vehicles would access the area only when called forward without clogging the cargo area.

While the final form of the redeveloped cargo area has not yet been finalised, a start could be made in 2-3 years, with completion over 8-10 years.

Logistics UK also welcomed the Heathrow announcement, along with the Chancellor’s wider plans to develop infrastructure. Chief executive David Wells commented: “If nationally important projects like the Lower Thames Crossing and third runway at Heathrow become a reality, we can deliver goods more efficiently across the country, benefitting everyone nationwide. Heathrow is the UK’s biggest port by value, and a critical hub which provides access to the rest of the UK and the world for British business – the opening of a third runway will expand the reach of industry to new global markets both for imports and exports.” 

However, he warned: “Logistics in the UK is getting less efficient. The World Bank Logistics Productivity Index shows that the UK has slipped from 4th in the world to 19th in the last 10 years – primarily because of congestion and delays, friction at our borders, and a lack of infrastructure investment.”

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