Heathrow Unveils £49bn Expansion Plan Including Third Runway

Heathrow Airport has announced a £49bn plan to expand and modernise the UK’s busiest airport, including a third runway and new terminal facilities.

Chief executive Thomas Woldbye described the project as “urgent”, saying Heathrow is operating at full capacity “to the detriment of trade and connectivity”. The expansion would be funded entirely through private investment and is expected to be completed within the next decade.

The proposals include:

• A 3,500m North-Western Runway, boosting capacity to 756,000 flights and 150 million passengers annually (up from 84 million today).
• A new T5X terminal, expansion of Terminal 2, and three satellite terminals, alongside the closure of Terminal 3.
• A diverted M25 with a new tunnel and motorway widening between junctions 14 and 15.
• Improved rail links, cycling and walking routes, and upgraded bus and coach facilities.

Heathrow estimates the third runway will cost £21bn, the new terminal £12bn, and airport modernisation £15bn.

Government Backs Expansion

Chancellor Rachel Reeves said the project would “make Britain the world’s best-connected place to do business” and is part of Labour’s push to support trade growth.

Business groups including the CBI, British Chambers of Commerce, and MakeUK praised the plan as “an investment in the nation’s future”, saying it would boost exports, attract international visitors, and unlock billions in private investment.

Strong Opposition Over Environmental Concerns

The plans have drawn criticism from environmental groups, local residents, and politicians. London Mayor Sadiq Khan warned of “severe impacts on noise, air pollution and climate targets”.

Greenpeace UK policy director Dr Douglas Parr called the expansion “a gift to frequent flyers at the expense of everyone else” and argued that a frequent flyer levy should be considered instead.

Munira Wilson, Liberal Democrat MP for Twickenham, labelled Heathrow the UK’s “single largest polluter” and said the expansion threatens the nation’s climate goals.

The Green Party’s Zack Polanski accused the government of ignoring environmental commitments, while residents of Harmondsworth, near the airport, said a third of the village would be destroyed if the runway proceeds.

Rival Expansion Proposal

The Arora Group has put forward a competing Heathrow West plan, proposing a shorter 2,800m runway and a new terminal for under £25bn, avoiding the costly M25 diversion. The group says its runway could open by 2035, with the terminal completed in two phases by 2040.

Despite the backlash, the government has confirmed it fully supports Heathrow’s third runway, with Reeves saying national economic interests outweigh local opposition.