Heathrow to unveil multibillion-pound investment ahead of new runway plan

Heathrow airport is set to announce a multibillion-pound investment as it prepares its proposal for a new runway.

In a speech on Wednesday, chief executive Thomas Woldbye will unveil 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.

This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown

Thomas Woldbye, Heathrow

Mr Woldbye is expected to say: “This privately-funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year.

“Heathrow is proud to answer the Chancellor’s call to get Britain building.”

The Government said the investment programme is expected to secure thousands of British steel jobs across the country by driving a significant increase in demand for UK-made steel.

Mr Woldbye will add: “A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to Government this summer.

“Ahead of then, as part of a phased expansion programme and supported by the Government’s clear backing, I am today confirming multibillion-pound investment plans, 100% privately-funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability.

“This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown.”

Mr Woldbye will insist the project can be carried out “responsibly” because of “strict environmental safeguards”.

He will say: “This project can only go ahead if we meet the rules on noise, air quality and carbon that the Government sets out in the Airports National Policy Statement – it’s as simple as that.

“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before.

“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 will make the speech at British Steel’s Scunthorpe plant, which is the only facility making primary steel in the UK.

He will sign 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.

Detailed plans for the third runway are still being prepared.

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.”

Industry minister Sarah Jones, who is expected to give a keynote speech at the launch event on Wednesday, will say: “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.”

Alex Veitch, director of policy at the British Chambers of Commerce, said: “Expanding airport capacity is a key part of accelerating economic growth – and today’s announcement is great news for British business.

“It is real show of support for domestic steel production and supply chains across the UK. As further infrastructure projects are given the green light, many more opportunities can be seized to boost British business and drive forward 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.

“With the airport embarking on its largest-ever private investment programme, this commitment unlocks significant opportunities for UK steel producers and supply chains to help deliver critical national infrastructure.”

Campaigners described the planned announcement as “Orwellian”.

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 re-affirmed 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 £3.3bn and minus £2.2bn 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.

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