Heathrow expansion error

A government with no idea about tackling Britain’s financial problems has latched on to the expansion of the country’s airports as the transport answer to promoting growth. The outcome might not be as positive as promised.

Large construction projects do provide skilled jobs and stimulate the economy. And investment in transport infrastructure is certainly necessary to improve employment opportunities, access to new housing, and industrial growth.

Since the Covid pandemic, Britain’s airports have increasingly relied on outbound travel for foreign holidays. Inbound tourism to Britain is less than a third of that, and business travel has dropped off. The recent approval of expansion at London City and London Stansted airports is to be welcomed, as is the support for early decisions on expansion at London Gatwick and Luton, and the re-opening of Doncaster Sheffield Airport, meeting the needs of growing leisure traffic.

Air freight is important too. According to industry reports it accounts for around 40 per cent by value of British exports, and an increasing proportion to non-EU destinations. The approval of new facilities at East Midlands airport to attract more freight traffic is also welcome.

But Rachel Reeves’ enthusiasm for expanding London’s principal airport at Heathrow is misplaced. Lucrative business travel has declined since the pandemic with little sign of resurgence. This undermines the assumptions made by the 2015 Airports Commission report saying Heathrow was the best option for the expansion of airport capacity. The present government seems to be relying on that.

Aviation expansion needs to be planned as part of the overall transport provision for the country, and properly integrated with other transport modes. Reeves’ prioritisation of Heathrow expansion over other transport needs is questionable. For example restoring HS2 in full to expand rail capacity will have advantages for much more of the country, given the predicted capacity needs.