News story

£344 million London City Airport expansion hailed by Chancellor

London City Airport expansion will create 1,600 airport jobs and potentially add £1.5 billion to the UK economy by 2025.

London City Airport at sunset

In a major boost to improve passengers’ journeys and support British jobs and investment, Chancellor Philip Hammond, Transport Secretary Chris Grayling and Communities Secretary Sajid Javid have today (27 July 2016) announced the go-ahead for a brand new £344 million expansion programme at London City Airport.

The three ministers announced the approved plans for an extended terminal, new aircraft taxiway and parking spaces for planes in one of the capital’s fastest growing airports.

Set to improve passengers’ journeys, these new plans will increase connections within the UK and Europe and support business opportunities and investment.

London City Airport also estimates that the scheme will create 1,600 airport jobs for staff, together with 500 construction jobs, and could potentially contribute £1.5 billion to the UK economy by 2025.

There will be new space for planes to taxi to and from the runway, so more planes can use it, and new stands for planes to allow bigger, more modern planes to use the airport. This will mean more flights at peak times, with bigger, newer and, most importantly, quieter planes. An extended terminal will give the airport the space it needs to cope with the increase in passengers and services, bringing a better passenger experience.

London City Airport will also make a number of investments in transport links around the airport, including funding the cost of additional DLR rolling stock (£2.6 million), investing in a bus and taxi access scheme and improving walking and cycle routes to the airport.

Chancellor of the Exchequer, Philip Hammond said:

London City Airport’s ambitious growth plans will boost international connections, strengthening the City of London’s links to destinations across the world, and send a clear signal that Britain is open for business. Making it easier to visit and do business in the City of London will help drive forward our economy and further strengthen the city’s status as the world’s leading financial centre.

This is a real vote of confidence in the resilience of our economy, creating over a thousand new jobs.

Transport Secretary Chris Grayling said:

This is fantastic news for London and Britain as a whole. I am determined to invest in the infrastructure this country needs, to help people get around more easily, boost investment and create opportunities.

London City Airport is an engine for growth in the City, serving the community in which it operates and providing a vital link to our regional airports and the rest of the country.

These new plans for London City Airport will deliver jobs and business in the capital and more widely. Companies across the UK will be able to bid for construction and procurement contracts worth £294 million, meaning the benefits will be felt up and down the country.

Communities Secretary Sajid Javid said:

This decision clearly indicates that Britain is open for business.

The expansion of both the airport and terminal building will provide a real boost to economic growth and job creation.

Commuters also stand to benefit from the expansion of the terminal and improved facilities which will make using the airport more pleasant and efficient.

The planning decision was formally approved by the Transport Secretary Chris Grayling and the Secretary of State for Communities and Local Government Sajid Javid.

A generous compensation package will be provided by the airport to support local residents affected by the increase in air traffic.

Published 27 July 2016