The following Statement was made in the House of Commons on Wednesday 22 October.
“With permission, I will update the House on the steps this Government are taking to realise the benefits of expansion at Heathrow Airport, having invited proposals for a third runway earlier this year.
Today I am launching a review of the airports national policy statement. Britain wants to fly, and this Government will act to meet public aspirations. Our review of the ANPS will ensure that while we unlock long-term capacity for more flights at the nation’s only hub airport, we will also meet our obligations to passengers, communities and the environment. Today is a step forward for UK aviation and infrastructure, supporting growth in the economy and enabling a modern, efficient transport system that harnesses international investment, boosts connectivity and strengthens UK competitiveness.
We are committed to making a decision on a third runway at Heathrow within this Parliament, and we are clear in our ambition to see flights taking off on a new runway in 2035. We said we would get on with this, and we have. When the previous Government set up the Davies commission, it took them five years to publish the original draft ANPS. We will get to the same point in 18 months, with the process completed by the end of 2026, showing our commitment to delivering progress swiftly but robustly. When we say we back the builders, not the blockers, we mean it.
But this is not a blank cheque. Expansion at Heathrow must minimise cost for passengers and customers. The taxpayer must not be expected to foot the bill. That is why the scheme will be privately financed—both the core project and the related infrastructure improvements. Extra staff and passengers must be able to get to and from the airport without turning the M4 and M25 into Europe’s largest car park. Crucially, the expansion must align with our legal, environmental and climate commitments. Starting the review of the ANPS is critical to delivering expansion and will provide the basis for decisions on any future planning applications.
The world has changed since the last ANPS review in 2018, which is when it was designated. New environmental and climate obligations have been introduced, and patterns of travel have changed. However, pretty much every UK airport saw its busiest summer on record. We could put our head in the sand and pretend this is not the case, but we would be doing a disservice to our economy and to the next generation. That is why, in carrying out this review, we will consider how any proposed scheme must meet four clear tests: that it contributes to economic growth across the country; that it meets our air quality obligations; that it is consistent with our noise commitments; and, crucially, that it aligns with our legal obligations on climate change, including net zero.
We will seek the independent opinion of the Climate Change Committee, which I will write to shortly to request this advice. While a third runway at Heathrow has been factored into carbon budget 6, it is right that we update our modelling and seek the views of the CCC. Given Heathrow’s national importance, we will also consider naming the airport as critical national priority infrastructure, in line with our approach to low-carbon energy projects. We are further considering whether to name a statutory undertaker as an appropriate person to carry out the project under the Planning Act 2008, providing additional clarity to stakeholders and the local community. It is clear that this is a large and complex programme that requires a thorough and evidence-led approach. Over the coming months, my department will develop analysis on economic and environmental impacts of expansion. We will also undertake an appraisal of sustainability, as required by statute, alongside a habitats regulations assessment and other necessary technical work. If amendments are needed to the ANPS as a result of the review, we expect to consult on an amended policy statement by next summer. Communities will be able to have their say and we will shortly publish an updated stakeholder engagement approach to ensure transparency and fairness throughout the process.
Earlier this year, we invited potential promoters to submit proposals for delivering a third runway at Heathrow. Seven proposals were received and were considered by officials from the Department for Transport, the Treasury, and expert financial and technical advisers. Following that assessment, two potential schemes remain under active consideration: a proposal from Heathrow Airport Limited and a proposal from the Aurora Group. We know that we must provide as much clarity and certainty for communities, investors and users of Heathrow as soon as possible, so we are seeking further information on the two proposed schemes with a view to reaching a final decision on a single scheme to inform the remainder of the ANPS review by the end of November.
When making that decision, we will consider: the interoperability of the proposed scheme with existing infrastructure; the plans for transport to and from the airport and associated road schemes; the land take and impact on surrounding homes and communities; the evidence that the scheme can be privately financed; and the economic benefits of the scheme. This Government are committed to moving quickly but we will also do this properly.
To deliver the scheme on time, the Government are also pressing ahead with a series of enabling reforms. The Planning and Infrastructure Bill will streamline the delivery of major infrastructure, including Heathrow. That includes faster consenting routes and more proportionate consultations. On judicial reviews, we have announced that we will work with the judiciary to cut the amount of time it takes for a review to move through the court system for national policy statements and nationally significant infrastructure projects. We are establishing the UK Airspace Design Service to deliver modernised airspace. That will initially prioritise airspace design for the London region, supporting both Heathrow and the wider network, and will also make flight paths more efficient so that planes spend less time over London. We will initiate slot reform to ensure future allocation maximises the benefits of an expanded Heathrow, as well as approved growth at Gatwick and Luton for passengers, local communities and businesses.
Expanding Heathrow will be one of the largest infrastructure projects in the UK. Rigorous and effective cost control will be essential to its success, both in minimising any impact on airline charges and costs to passengers and in maintaining credibility with financial markets. The Government will therefore work with the Civil Aviation Authority to review the framework for economic regulation for capacity expansion at Heathrow, ensuring the model provides strong incentives for cost-effective delivery. We expect the CAA to publish a working paper in November, with a view to that work completing next summer.
This is a landmark opportunity for Heathrow, for the aviation sector and for the UK economy. The Government remain fully committed to ensuring the expansion is delivered in a way that is timely, cost-efficient and environmentally responsible. I commend this Statement to the House”.
My Lords, the Statement does two things: it announces a review of the Airports National Policy Statement, but gives us little idea in detail as to how it is to be revised, and it tells us that the only two credible proposals for Heathrow’s expansion are still being considered and that the more fanciful proposals have been dismissed. The two are linked because the core purpose of the current ANPS is to facilitate the expansion of Heathrow. In my view, the timing of the Statement is nakedly intended to persuade the OBR that the project is real and deliverable. I wish to test that.
First, there is the question of delivery of a revised ANPS, which I must say I think Ministers are rather reckless to embark on. The current Airports National Policy Statement was produced under the premiership of my noble friend Lady May of Maidenhead and expressly favoured the expansion of Heathrow. It survived scrutiny in the High Court and was appealed to the Court of Appeal by environmental groups on no fewer than 17 grounds of challenge and fell on a single one—the legal meaning of the word “policy”. On that arcane question the whole statement fell. By then, the Government were in the hands of Mr Johnson, who was perfectly content with that outcome. But Heathrow took up the cudgels, and the case went to the Supreme Court, which restored the ANPS.
The timeline tells its own story. In 2015, the Airports Commission recommended a third runway. In 2018, Parliament approved it by 415 votes to 119, yet only by December 2020 did the Supreme Court clear the legal path for Heathrow to proceed—five years ago. Now, in October 2025, Ministers tell us rather recklessly that the policy is going to be revised and accelerated and we are going to go through the whole process again, with all the potential challenges involved. It is a brave or reckless Government who set out on this course.
The Government have an answer to this. In the Statement, the Secretary of State says:
My Lords, I welcome this debate on the review of the airports national policy statement and the Government’s announcement regarding Heathrow. But let me be very clear that the Liberal Democrat Benches believe that expansion of Heathrow would be a mistake from the Government and deliver a blow to our net-zero commitments.
A reliable and safe transport system is vital for economic prosperity in all parts of the country, and improving transport is essential to combat climate change and air pollution, but we must ensure that new infrastructure supports the UK’s climate targets. Analysis from the New Economics Foundation suggests that approving the expansion of Heathrow Airport would cancel out the climate benefit of the Government’s clean power plan within five years, and expansion of Gatwick and Luton Airports would cancel out the climate benefit of the CPP by 2050, so the Government’s sudden support for airport expansion just does not stack up.
Ed Miliband, speaking at the Environmental Audit Committee on 27 January this year, said:
“Any aviation expansion must be justified within carbon budgets … If it cannot be justified it will not go ahead”.
Will the Minister confirm that the four new tests—the evidence-led approach set out by the Secretary of State—will have to be met in their entirety before this Government will give the green light to Heathrow expansion? Will the Government publish the metrics for each of these four new tests so that there is transparency in the assessment? Will the Minister confirm that they will not proceed with Heathrow expansion if the Climate Change Committee advises that the plans do not meet legal obligations on climate change, including net-zero or air-quality obligations?
Let us look at noise pollution. It is a really big issue. Around 700,000 people are impacted currently by noise from Heathrow. It is not just those who are living in places such as Richmond, Kingston, Hounslow and Surrey—around the airport site. In places such as Lambeth and Southwark, residents have the clash of Heathrow flights and City Airport flights throughout the day, causing serious nuisance. The CAA workbook has highlighted that the number of those who are overflown could double to 1.5 million under some Heathrow expansion plans. Noise is an issue which many people feel has escaped any meaningful legal control for too long, leaving overflown communities exposed to excessive noise, impacting their health and quality of life. As part of this work, will the Government adopt the World Health Organization’s recommended noise levels to address noise pollution from the operations of Heathrow Airport?
My Lords, I think the place to start here is to say that it is quite clear that having more capacity for an airport that has been at capacity for two decades is a really important step for economic growth and the future of our country. Heathrow is the only international airport hub in Britain: it deserves to function properly and for the economy of the nation.
I shall refer first to the points made by the noble Lord, Lord Moylan, many of which seemed to me to be, on the whole, a criticism of his party’s previous actions in government rather than a critique of what this Government are doing. The fact that the last review took an awfully long time to get to not much of a conclusion is not necessarily a criticism of how this Government intend to proceed. Indeed, we believe that we have a realistic timetable to do so.
The noble Lord assumes that one of the two schemes being taken forward at present, the scheme from Heathrow Airport Ltd, is the one that will be pursued, but that is not an assumption that this Government are making, because we will consider more fully the two remaining schemes to be considered, which differ and clearly have different implications and prices. It is important that they are considered in comparison with each other. Part of that consideration, as the noble Lord notes, is whether they are financeable: what they cost and how they are going to be funded.
It is right that the Civil Aviation Authority looks at the framework for economic regulation. That is, as the noble Lord says, what it does, but it needs to look again in the circumstances in which we are contemplating such a large-scale expansion of the principal—the only—hub airport in Britain.
The noble Lord says that the Government have a lot to do to show that this process is credible. The Government are starting on that process with every intention of showing that it is credible, to do something that previous Governments have not done, with a timescale that is tight but very realistic.
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“On judicial reviews, we have announced that we will work with the judiciary to cut the amount of time it takes for a review to move through the court system for national policy statements and nationally significant infrastructure projects”.
At present, the average time for such reviews stands at roughly 1.4 years. What is the Government’s target? How long do the Government expect it to take for the new airports national policy statement to be approved? Remember, it is the Chancellor’s ambition that this runway should open in 2035, with spades in the ground many years before that, given how much muck has to be moved in order to embrace Heathrow’s plans. I am indeed making the simplifying assumption—it may not be true—that the Heathrow proposal is the one eventually chosen by the Government in November and not the alternative scheme. I may be wrong about that, but I think my assumption is reasonable and, for the moment, simplifying. That gives us five years.
Meanwhile, public debate on the whole thing has been minimal, because we have very little information about the proposals. The projected cost of Heathrow expansion stands at £49 billion. The market value of Heathrow Airport, which we know from the last time its shares traded last year, is around £9.5 billion, even though its regulated asset base is closer to £20 billion. People are willing to pay £9.5 billion for something which has a regulated asset base of £20 billion, and they are then proposing that, despite the fact that it is heavily leveraged, much more so than it was 10 years ago when it was discussing this project, we have to reckon with the fact that it wants to spend at least £49 billion—that is the publicly quoted figure; it may be more by now—on a third runway to increase capacity by 50%. My second question is whether this is credibly financeable and whether the Government believe that it is.
However, the airlines do not trust Heathrow, because they are expected to pay in advance off the regulated asset base. In fact, they are paying already, because the CAA has approved that some of the costs that Heathrow incurs can already be charged to the airlines and thus to the flying passengers. They think that because Heathrow is incentivised by the current regime to make its expenditure as high as possible, it is untrustworthy. They point to various things, such as a new baggage system completed in 2016, which was priced at £234 million but ended up costing £435 million, and a cargo tunnel with a budget of £44.9 million that ended up with an estimated cost of £197 million. They point, in contrast to Heathrow’s plan to spend £49 billion on a single runway, to terminals at Barcelona, Frankfurt, Madrid and Munich, that all cost half or less when taking the size of the terminals into account; the fact that Changi is expected to create a new terminal for £8 billion; and that New York’s JFK will open its new Terminal 1 in 2026, the centrepiece of a £15 billion transformation that will be completed by 2030.
What are the Government going to do about Heathrow and its regulatory structures? They say that they are going to change them. The Statement says:
“The Government will therefore work with the Civil Aviation Authority to review the framework for economic regulation for capacity expansion at Heathrow, ensuring the model provides strong incentives for cost-effective delivery”.
What has the Civil Aviation Authority, the regulator, been doing for the last 20 years in that case, if it has not been ensuring firm delivery? So my third question is: what are the Government going to do about that?
I plan to speak for eight minutes.
There is also the matter of noise, which I would like to pursue at some stage, but not at the moment. With that, I will sit down, but I believe that the Government have a lot to do to show that this project is credible, and that they are not contributing to its fast delivery by revising the airports national policy statement at this stage.
I come to the point about surface access. While we do not want to see expansion and we do not believe it stacks up economically or environmentally, the last thing the area needs is an airport expansion plan that does not address and fund fully surface transport to the airport. It is a problem now and, therefore, higher modal share for public transport must be a foundation block for the Government’s assessment. Can the Minister confirm the Government’s commitment to fully funded surface transport access as part of this work? As part of the assessment of the two options, will the Government ensure that surface rail access, including the southern and western rail links, are an integral part? Will the Government consider the future of the premium Heathrow Express line as part of its surface access assessment, and when will this be published?
I pick up particularly these points around rail surface access because the letter from the Secretary of State in June stressed
“surface access mode share targets, including elements of a surface access strategy”
and went on to talk about it covering
“public transport, and active travel”.
Yet in the letter that was published last week, on 22 October, under the heading “Surface access”, it states:
“To minimise unnecessary disruption, please provide additional information regarding the construction of road schemes”.
Rail seems to have been downgraded. I really want some assurance from the Minister today.
In an attempt to demonstrate growth, the Government are misguided in thinking that an expanded Heathrow can deliver for the whole country. There are many other schemes that would deliver a lot more for communities across the country. We do not support Heathrow expansion and will closely monitor every stage of this process to ensure that local communities are heard loudly and clearly.
In respect of the comments made by the noble Baroness, Lady Pidgeon, that expansion is a mistake, the first thing to say is that is hard to see what else you can do, as this is the only hub airport in Britain. There is no other scheme that will create such a hub airport. Therefore, contemplating a third runway is, we believe, the right thing to do. She asks whether the four new tests will have to be met in their entirety, and the answer is yes, they will. That is quite clear; it has been said from the beginning. We know what the tests are and the aspirants to build the third runway will have to meet them. We will also take the advice of the Climate Change Committee, to which the Secretary of State in the other place is about to write.
The noble Baroness makes the point about noise. One point that was also part of the Secretary of State’s Statement last week was establishing the UK Airspace Design Service in order to look at airspace design for the London region, supporting both Heathrow and the wider network, and also seeking to make flight paths more efficient so that planes spend less time over London, together with slot reform that maximises benefits at Heathrow and the other airports in the south-east of England.
On the noble Baroness’s comments about surface access, I was reading the letters sent to the two successful applicants, and she is right that they refer to construction of roads, but that is not to the exclusion of the rail access points that she refers to. Indeed, it is quite clear that aspirants to build the third runway will have to look at public transport connectivity to the airport. I think that is really important. She mentioned both the southern and western links and the future of the Heathrow Express, and it is quite clear to us that aspirants will have to reference those links and any others that they propose to put forward in order to have an acceptable policy for surface access to the airport.
The Government do not believe that they are misguided. They believe that they are setting out a coherent, speedy but sensible programme to establish the third runway.