Heathrow Airport expansion ‘will boost British steel’

Chief executive Thomas Woldbye announces major upgrade as it prepares third runway bid

Heathrow Airport chief executive Thomas Woldbye announced a multibillion-pound investment to make more routes to the UK viable. Bloomberg

London's Heathrow Airport has unveiled a multibillion-pound expansion plan as it prepares to submit proposals in the summer for a third runway.

On Wednesday, chief executive Thomas Woldbye announced upgrades to existing infrastructure using British steel, which will also secure thousands of jobs.

The announcement came after President Donald Trump announced steel imports to the US will face 25 per cent tariffs.

Mr Woldbye said last month's backing by the UK government for the construction of a third runway has given him the “confidence to start and accelerate plans”.

The airport recorded its busiest January this year with more than 6.3 million passengers. Bloomberg

Chancellor Rachel Reeves had said the British government “cannot duck the decision any longer” and the runway would “unlock further growth”.

Mr Woldbye said the expansion of Heathrow will boost the capacity of Terminals 2 and 5 by reconfiguring the layout of the airfield and will increase bus and coach connections.

“This privately-funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year,” he said.

“Heathrow is proud to answer the Chancellor’s call to get Britain building. It will make more routes to the UK viable. Passenger demand continues to grow and 2024 was our busiest year. As we get busier we are more committed than ever to provide an excellent service to our passengers.”

He warned that “the UK risks losing its status as a global trading hub” if the airport does not grow.

The government said the investment programme will secure thousands of British jobs by driving a significant increase in demand for UK-made steel.

Heathrow Airport says it will submit plans for a third runway in the summer. Bloomberg

“A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to government this summer,” he said.

“Ahead of then, as part of a phased expansion programme and supported by the government’s clear backing, I am today confirming multibillion-pound investment plans, 100 per cent privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability. This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown.”

He gave reassurances that the project can be carried out “responsibly” due to the “strict environmental safeguards” in place. “This project can only go ahead if we meet the rules on noise, air quality and carbon that the government sets out in the Airports National Policy Statement – it’s as simple as that,” he said.

“Even though we’re serving more passengers than ever before, our noise footprint is smaller and we’re also using more sustainable aviation fuel than ever before. I want to assure you that we are committed to listening and working with our local communities to provide them with the certainty they deserve, ending years of doubt.”

Mr Woldbye made the speech at British Steel’s Scunthorpe plant, which is the only facility making primary steel in the UK, as he signed the UK Steel Charter, which aims to maximise supply chain opportunities for UK steel producers.

The airport's Terminal 5 – which opened in 2008 – required 80,000 tonnes of steel, and detailed plans for the third runway are still being prepared.

The Department for Business and Trade said it welcomed a “major vote of confidence from Heathrow in its growth mission after backing a third runway”.

“This investment is the latest in a long line of wins which our Plan for Change has helped deliver, and not only secures thousands of jobs but marks a major vote of confidence in our home-grown steel sector and this government’s industrial strategy,” Industry Minister Sarah Jones said.

“Driving demand for UK-made steel is a crucial part of our upcoming Steel Strategy and by signing the Steel Charter, Heathrow will give a huge boost to steelmaking communities across the UK and help us kickstart economic growth.”

Alex Veitch, director of policy at the British Chambers of Commerce, said expanding airport capacity is a key part of accelerating economic growth.

“It is real show of support for domestic steel production and supply chains across the UK,” he said. “As further infrastructure projects are given the green light, many more opportunities can be seized to boost British business and drive forward growth.”

However, campaigners have described the plans as “Orwellian”. Paul McGuinness, chairman of the No 3rd Runway Coalition, said: “How bizarre for the government to suggest supporting a project that hasn’t even submitted a planning application, and can’t be approved until well beyond this parliament’s lifetime, will kickstart economic growth.

'Stop Heathrow Expansion' signs lining a road near Harmondsworth, one of the villages that would be affected by expansion of the west London airport. PA Wire

“As for any construction or purchase of steel, that would be at least over half a decade away, and the project may yet prove uninvestable as several of Heathrow’s airline customers have averred.

“There seems something Orwellian about this announcement, and this is only reaffirmed by its decision to cite a report commissioned by Heathrow itself, as evidence of the project’s possible benefits – rather than the government’s own Treasury’s assessment which concluded that once the ‘disbenefits’ had been taken into account, the project’s maximum economic benefit to the UK would be somewhere between £3.3 billion and minus £2.2 billion over 60 years.”

On Tuesday, the airport said it had recorded the busiest January in its history with more than 6.3 million passengers travelling through its four terminals. It is up more than 5 per cent from six million in January 2024.