The third runway at Heathrow Airport gets the green light from the government

• UK ministers have approved Heathrow Airport’s controversial £49bn expansion plan, which includes building a third runway.
• The project could increase air traffic by 57 percent and passenger traffic by 79 percent by 2035, supporting more than 100,000 new jobs and boosting trade and tourism.
• While Heathrow’s official proposal was considered the most feasible, the government has left open the possibility of Arora Group, which has proposed a £25bn alternative, acting as promoter of the project.

Transport Secretary Heidi Alexander announced that Heathrow’s £33bn plan to create a third runway had been selected as the airport’s expansion plan.

Heathrow Airport welcomed the government’s decision, saying that the expansion will improve connectivity and passenger experience and provide a major economic boost to the British companies involved in its delivery. The airport acknowledged the need to meet sustainability targets and reduce local impacts, and urged the Civil Aviation Authority and government to provide regulatory clarity by mid-December to avoid delays.

Environmental groups have strongly opposed the expansion, citing concerns about disruption, displacement and emissions.

“We welcome the government’s confirmation that expanding Heathrow Airport, the UK’s gateway to growth, will mean more connectivity, increased trade, improved passenger experience and a huge economic boost for the UK businesses that will help design and build it. We also recognize that the scheme will need to meet the sustainability targets set out in the revised ANPS and seek to minimize impacts on local communities,” the team said on LinkedIn.

“We are now awaiting clarity from the CAA and Government on how to organize the crucial next phase of the project. We need final decisions from the CAA and Government by mid-December so project delays can be avoided and we can move forward with the delivery of this vital project for our customers and the UK.”

The decision confirms the selection of the Heathrow Airport Limited View as the preferred scheme to guide the ongoing review of the Airports National Policy Statement (ANPS). Central to the expansion is a new 3,500-metre runway to the north-west of the airport, along with a major reshaping of the surrounding infrastructure – including a £1.5 billion project to divert the M25 motorway through a tunnel under the new airstrip.

Government projections suggest the expanded airport could increase annual air traffic by 57 per cent and boost passenger numbers by up to 79 per cent by 2035. Ministers claim the project will create more than 100,000 jobs across the UK and deliver significant benefits to trade, investment and tourism.

Transport Secretary Heidi Alexander described the decision as an “important step” towards strengthening the UK’s role as a global aviation hub. “Heathrow is our only major airport and plays a critical role in supporting the economy. The expansion must now be implemented in a way that is consistent with environmental commitments and cost-effectiveness,” she said.

It is expected that the entire cost of the expansion will be privately financed, with no direct cost to taxpayers. Of the total £49 billion, £21 billion has been allocated specifically for the third runway and related works, including surface access improvements.

While Heathrow’s proposal was considered the “most credible and feasible” option, the Department for Transport did not rule out the possibility of competing bids acting as promoters of the project. The Arora Group, led by hotel tycoon Surender Arora, has presented a £25bn alternative plan that includes a shorter runway that would avoid rerouting the M25.

Officials acknowledged that the Arora scheme offered potential cost savings, but noted that Heathrow’s bid demonstrated greater readiness and feasibility, particularly in surface access plans and operational flexibility. However, other companies may continue to submit competing applications during the development approval process.

Heathrow’s third runway gets the green light from the government: next steps

The Government will now use Heathrow’s proposal as the basis for reviewing and amending the ANPS, with a public consultation expected by July 2026. A final decision on planning approval could be made by 2029, pending the outcome of the regulatory processes and a development consent order.

The Civil Aviation Authority (CAA) will continue to play a central role in setting the regulatory framework for early cost recovery and long-term financial oversight. Meanwhile, the Department for Transport has launched a consultation on modernizing the UK’s airspace and reiterated its support for sustainable aviation fuels and decarbonisation efforts.