• UK ministers have approved Heathrow Airport’s controversial £49bn expansion plan, which includes the construction of a third runway.
• The project could increase flight movements by 57 percent and passenger traffic by 79 percent by 2035, supporting over 100,000 new jobs and boosting trade and tourism.
• While the official Heathrow proposal was deemed most deliverable, the government has left open the possibility for the Arora Group, which proposed a £25bn alternative, to act as the project promoter.

Heathrow’s £33bn plan for a third runway has been chosen as the plan to expand the airport, Transport Secretary Heidi Alexander has announced.

Heathrow has welcomed the government’s decision, saying the expansion will improve connectivity, passenger experience, and offer a major economic boost to British businesses involved in its delivery. The airport acknowledged the need to meet sustainability targets and minimise local impacts, and has urged the CAA and government to provide regulatory clarity by mid-December to avoid delays.

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

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

“We now await clarity from the Civil Aviation Authority and the Government on how the crucial next phase of the project will be regulated. We need definitive decisions from the CAA and Government by mid-December so that delay to the project can be avoided and we can get on with delivering this vital project for our customers and for the UK.”

The decision confirms the selection of Heathrow Airport Limited’s proposal as the preferred scheme to inform the ongoing review of the Airports National Policy Statement (ANPS). Central to the expansion is a new 3,500-metre runway to the northwest of the airport, along with a significant reconfiguration of surrounding infrastructure — including a £1.5 billion project to divert the M25 motorway through a tunnel beneath the new airstrip.

Government projections suggest the expanded airport could increase annual flight movements by 57 percent and boost passenger numbers by up to 79 percent 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” toward strengthening the UK’s role as a global aviation hub. “Heathrow is our only hub airport and plays a critical role in supporting the economy. Expansion must now be delivered in a way that aligns with environmental obligations and cost-efficiency,” she said.

The full cost of the expansion is expected to be privately financed, with no direct cost to the taxpayer. Of the £49bn estimated total, £21bn is allocated specifically for the third runway and related works, including surface access improvements.

While Heathrow’s proposal was deemed the “most credible and deliverable” option, the Department for Transport has not ruled out the potential for rival bids to act as project promoters. The Arora Group, led by hotel entrepreneur Surinder Arora, had presented a £25bn alternative plan involving a shorter runway that would avoid rerouting the M25.

Officials acknowledged that Arora’s scheme offered potential cost savings but noted that Heathrow’s bid demonstrated greater readiness and feasibility, particularly in its surface access plans and operational resilience. Nevertheless, other companies may still submit competing applications during the development consent process.

Third runway at Heathrow gets government green light: Next steps

The government will now use Heathrow’s proposal as the foundation for reviewing and potentially amending the ANPS, with public consultation expected by July 2026. A final decision on planning consent could come by 2029, pending the outcome of regulatory processes and the 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 modernising UK airspace and reaffirmed its support for sustainable aviation fuel and decarbonisation efforts.

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