The UK Government has announced its support for a third runway at Heathrow Airport, a move expected to generate over 100,000 jobs and boost economic activity across the country. The expansion is part of the Government’s wider “Plan for Change” to accelerate infrastructure development and attract investment.
Chancellor Rachel Reeves confirmed the decision during a speech at Siemens in North Oxfordshire, emphasising that the project will unlock new opportunities for trade, investment, and tourism. Research from Frontier Economics suggests that 60% of the economic benefits from the expansion will be felt outside of London and the South East, helping to spread prosperity across the UK.
“This project will increase connectivity, drive investment, and create thousands of high-quality jobs,” Reeves stated. “By modernising our infrastructure and removing barriers to growth, we are making the UK a more attractive place to do business.”
The announcement aligns with broader government efforts to accelerate planning approvals and streamline investment in major infrastructure projects. Transport Secretary Heidi Alexander is also expected to make imminent decisions on expansion plans for Gatwick and Luton airports.
Paul Weston, Regional Head of logistics property specialist Prologis UK, welcomed the news, citing Heathrow’s vital role in supporting trade and logistics: "The Chancellor’s announcements reflect a drive to support enhanced UK economic growth, which underscores Prologis’ global partnership with East Midlands Airport to unlock investment at the nation’s only inland Freeport site," he said, adding: "We are focused on delivering a new Advanced Manufacturing and Logistics park at pace and in partnership, harnessing the site’s unique potential."
The Government’s commitment to modernising UK aviation also includes significant investments in sustainable aviation fuel (SAF) to reduce carbon emissions. This initiative, alongside planning reforms and private sector partnerships, is expected to create thousands of green jobs and position the UK as a leader in cleaner air travel.
The Heathrow expansion is seen as a strategic step in enhancing the UK’s economic competitiveness, with lower fares, fewer delays, and improved global connectivity among the expected benefits. The Government has invited formal proposals to be submitted by the summer, ensuring that the project aligns with legal, environmental, and climate obligations.