Heathrow has announced a multibillion-pound investment as it prepares its proposal for a new runway, saying “the UK risks losing its status as a global trading hub” if the airport does not grow.
In a speech on Wednesday, chief executive Thomas Woldbye unveiled funding for upgrades and expansion, such as boosting the capacity of Terminals 2 and 5, reconfiguring the layout of the airfield, and boosting bus and coach connections.
It comes after Chancellor Rachel Reeves used a speech on growth last month to give her support for a third runway at Heathrow.
Speaking at the British Steel plant in Scunthorpe, Mr Woldbye said: “Just two weeks ago, the Chancellor recognised the critical role that Heathrow plays as the UK’s gateway to growth.
“Her speech wasn’t just a clear commitment to get Britain building, but a rallying call to industry to play its part in the growth mission, which will benefit the whole country.
“Heathrow is proud to answer that call.”
He said: “Today, I can confirm that we will be launching the largest infrastructure investment programme in the history of Heathrow.
“We will be investing billions of pounds to transform Heathrow’s current infrastructure, starting with projects within our existing boundary and working towards a third runway.”
Mr Woldbye said: “This multibillion-pound investment, the largest private investment ever made in the UK’s transport network, will provide the launch pad for a third runway.
“The Chancellor explained in her Oxford speech why the third runway is critical for our country’s future economic success.
“And across the world, the UK’s competitors recognise the importance of global connectivity and have ensured their aviation capacity meets the requirements of a connected, globalised world.
“Schiphol enjoys six runways, Frankfurt and Paris four each.
“Without capacity growth at Heathrow, the UK risks losing its status as a global trading hub.”
The Government said the investment programme is expected to secure thousands of steel jobs across the country by driving a significant increase in demand for UK-made steel.
Mr Woldbye said plans for a third runway will be submitted to the Government this summer, when he said he will have “more to say on the exact cost”.
He said: “And following speculation I’ve heard in recent weeks, I want to reiterate that the delivery of the UK’s gateway to growth will be 100% privately funded.
“No taxpayer money will be used to pay for the terminal buildings, the new runway, the road and rail upgrades, or any other changes necessary to meet the requirements set out in the Airports National Policy Statement.
“This investment is not a choice between expansion at an airport in London or taxpayer-funded projects in other parts of the country.
“It is a choice between private investment here in the UK or private investment in other countries, between increasing this country’s international connectivity or investors putting their money into building new infrastructure in France or Italy, between jobs here in the UK or jobs elsewhere in Europe.”
Mr Woldbye insisted the project can be carried out “responsibly” because of “strict environmental safeguards”.
He said: “I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”
Mr Woldbye spoke at British Steel’s Scunthorpe plant, which is the only facility making primary steel in the UK, along with industry minister Sarah Jones.
He said Heathrow is signing the UK Steel Charter, which aims to maximise supply chain opportunities for UK steel producers.
Terminal 5 – which opened in 2008 – required 80,000 tonnes of steel.
The Department for Business and Trade said it welcomed a “major vote of confidence from Heathrow in its growth mission after backing a third runway”.
Ms Jones said: “This investment is the latest in a long line of wins which our plan for change has helped deliver, and not only secures thousands of jobs but marks a major vote of confidence in our homegrown steel sector and this Government’s industrial strategy.
“Driving demand for UK-made steel is a crucial part of our upcoming steel strategy, and by signing the Steel Charter Heathrow will give a huge boost to steelmaking communities across the UK and help us kickstart economic growth.”
UK Steel director general Gareth Stace said: “Heathrow signing the UK Steel Charter is a major vote of confidence in UK steelmaking and British businesses full stop.”
Also speaking at the event in Scunthorpe, Community general secretary Roy Rickhuss said: “One of the key issues that’s crucial to the success of Heathrow expansion is that the benefits are felt across the rest of the UK.
“The UK has to benefit, and the jobs created in the supply chain across the rest of the country.
“We’re going to win the hearts and minds of the UK public, that’s the message we have to get across. Because, if I’m honest, I don’t think that message is yet out there that this is not just about London, this is about the UK and growth for the UK.”
Mr Rickhuss said unions supported the investments but said the “elephant in the room” was the uncertainty over the future of the Scunthorpe steel plant and the future of the steel industry in the UK as it faces a range of challenges.
Paul McGuinness, chairman of the No 3rd Runway Coalition group, said: “How bizarre for the Government to suggest supporting a project that hasn’t even submitted a planning application, and can’t be approved until well beyond this parliament’s lifetime, will kickstart economic growth.
“As for any construction or purchase of steel, that would be at least over half a decade away, and the project may yet prove uninvestable as several of Heathrow’s airline customers have averred.
“The costs of demolishing villages, diverting roads and rivers and tunnelling over the M25’s busiest junction, to increase Heathrow’s size by an area that is larger than Birmingham International Airport, promises to be inordinately expensive.
“There seems something Orwellian about this announcement, and this is only reaffirmed by its decision to cite a report commissioned by Heathrow itself, as evidence of the project’s possible benefits – rather than the Government’s own Treasury’s assessment which concluded that once the ‘disbenefits’ had been taken into account, the project’s maximum economic benefit to the UK would be somewhere between £3.3 billion and minus £2.2 billion over 60 years.”
On Tuesday, the airport said it recorded the busiest January in its history.
More than 6.3 million passengers travelled through its four terminals last month.
That is up more than 5% from six million in January 2024.
The airport said transatlantic travel was a “key contributor” to the growth.
More than 1.2 million passengers travelled between Heathrow and the US in January, up 8% compared with a year earlier.
