![\"Heathrow](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/06\/GettyImages-1236861408-e1738065065820.jpg\")
\t\tHeathrow has claimed expansion is necessary to boost the UK economy\t<\/p>\n\t\t\tSaturday 20 June 2026 10:45 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tSaturday 20 June 2026 1:04 pm\n\t<\/p>\n
\t\tHeathrow has claimed expansion is necessary to boost the UK economy\t<\/p>\n
Heathrow\u2019s third runway could boost the UK economy by just 0.05 per cent, a 90 per cent loss of the economic benefit that had been previously forecast.<\/p>\n
The expansion of the UK\u2019s biggest airport will boost GDP by 0.05 per cent at best but this impact could be as little as 0.3 per cent, government analysis has found.<\/p>\n
Heathrow had previously promised that its expansion would deliver a 0.5 per cent economic boost \u2013 ten times that which is now expected.<\/p>\n
The airport says it is nearing capacity and has claimed that a third runway is essential to enable the UK\u2019s economic potential.<\/p>\n
Responding to the Department for Transport\u2019s publication of a draft policy backing the project, Heathrow\u2019s chief executive Thomas Woldbye urged the government to go faster to back the expansion.<\/p>\n
\u201cThe UK cannot realise its full economic potential without an expanded Heathrow,\u201d he said.<\/p>\n
Heathrow hits back at downgrade<\/p>\n
The airport has criticised the government\u2019s \u201cvery narrow\u201d analysis of the project\u2019s boost to GDP, claiming that it fails to take into account major factors like rising cargo trade and underestimated passenger number growth.<\/p>\n
Heathrow pointed to a 2015 government review which they claim \u201cconsistently found that our Heathrow expansion plans will grow the economy and benefit every part of the UK\u201d.<\/p>\n
A spokesperson for the airport said that the government\u2019s economic assessment is \u201cextremely limited\u201d and designed for publicly funded projects.<\/p>\n
\u201cIt doesn\u2019t capture any value from increased trade, inbound tourism or massive private investment into UK supply chains, businesses and steel producers. It\u2019s not fit for purpose and needs to be reformed to capture these clear benefits,\u201d they said.<\/p>\n
But opponents of Heathrow\u2019s expansion have seized upon details of the government\u2019s analysis, claiming that the social and environmental impacts of the project now outweigh its economic benefit.<\/p>\n
Alex Chapman, head of economic policy at progressive think tank the New Economics Foundation, said: \u201cThe results from the department\u2019s impact assessment seriously undermine the government\u2019s case for expansion.\u201d<\/p>\n
\t\t\t\t\tRead more<\/p>\n
\t\t\tHopes rise for decision on Heathrow\u2019s third runway plan<\/a><\/p>\n Business leaders, however, have welcomed the government\u2019s launch of a consultation on Heathrow\u2019s expansion, which they say would deliver a major boost to the economy.<\/p>\n Heathrow\u2019s plan \u2018only viable option\u2019<\/p>\n John Dickie, chief executive of industry body Business LDN, said: \u201cBuilding a third runway at Heathrow is vital to the UK\u2019s competitiveness as an island trading nation, so it\u2019s positive to see the Government taking the next steps towards making the project a reality.\u201d<\/p>\n The business group backed Heathrow\u2019s proposal for the project, which Dickie said is \u201cthe only viable option for delivery\u201d.<\/p>\n \u201cOur expansion plans are widely supported by businesses and trade unions across the UK because they understand the transformative difference this project will make with improved prosperity and new job opportunities for their communities,\u201d Heathrow\u2019s spokesperson added.<\/p>\n Heathrow\u2019s plans for the expansion have come under threat in recent months after the aviation regulator said<\/a> it could allow rival firms to bid to build the third runway.<\/p>\n Heathrow West, led by hotel tycoon Surinder Arora, has tabled a proposal for the project which he says will cost \u00a323bn, less than Heathrow\u2019s own \u00a333bn plans.<\/p>\n The government\u2019s planning documents opened the door to this bid by finding<\/a> that a phased construction of the mega-project might be necessary given its \u201cscale, complexity and delivery timeframe\u201d.<\/p>\n