Heathrow Airport consultation: jobs and the economy
Published 22 February 2017
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The initial draft Airports National Policy Statement consultation closed in May 2017. This information is no longer current.
Jobs and apprenticeships in the local area
Increased capacity represents an opportunity to increase the number of local jobs and apprenticeships supported by Heathrow.
Heathrow Airport currently directly employs around 75,000 people, making it one of the biggest single-site employers in the country. Many more people are also employed indirectly in supporting businesses and wider supply chains.
Work by the government and the Airports Commission suggests that an additional runway at Heathrow could deliver tens of thousands more local jobs by 2030.
The government supports the Airports Commission’s recommendation that the airport should ensure that local people are able to take advantage of the employment opportunities of an expanded airport. In particular, the government sees apprenticeships as an essential part of helping people to take advantage of these job opportunities, supporting individuals to develop key skills that will benefit both themselves and their employers.
Heathrow Airport has publicly committed to creating 5,000 new apprenticeships before 2030, doubling the current number of apprenticeships offered at the airport to 10,000.
Paul Nowak, Deputy General Secretary, TUC:
Unions are committed to working with Heathrow to make sure expansion delivers high quality jobs and apprenticeships across the country.
Benefits to the UK economy
Expanding Heathrow Airport is estimated to deliver additional benefits to passengers and the wider economy worth up to £61 billion over 60 years.
Heathrow Airport is one of the world’s major hub airports, forming a critical part of the UK’s aviation network – the third largest in the world.
The wider aviation industry is important to the UK economy because:
- in 2014, the aerospace and air transport industries generated around £20 billion of economic output
- the UK has the second-largest aerospace manufacturing sector after the USA, generating annual exports of £25 billion
But Heathrow is currently running at full capacity. The Airports Commission concluded that if airport capacity in the south-east is not increased this would:
- undermine the UK’s connections with the rest of the world
- increase delays and fares
- have knock-on effects in lost trade, tourism and foreign direct investment
Expansion at Heathrow will deliver real benefits for passengers, including lower fares, fewer delays and more daily destinations.
These benefits will be spread to passengers around the UK, aided by Heathrow Airport’s proposed new routes to UK destinations.
Expansion will mean the UK remains well connected to the rest of the world, leading to many more long-haul flights and connections to fast-growing economies.
Businesses are expected to take advantage of the new connections and more frequent services offered.
Expansion will also benefit the wider economy – in particular, by supporting growth in sectors that are dependent on aviation, such as financial services, creative industries, insurance, engineering and pharmaceuticals.
Inbound tourism was worth over £22 billion in 2015, and will benefit from increased connections globally and across the UK.
Ufi Ibrahim, Chief Executive, British Hospitality Association:
This decision demonstrates that the UK is open to visitors and investment from across the globe, and will also allow space for domestic air links to support regional tourism right across the country.
Exports and supply chain impacts
Heathrow carries more freight by tonnage and value than all of the UK’s other airports combined, totalling 1.5 million tonnes in 2015.
In 2015, over £155 billion of air freight was sent between the UK and non-EU countries, representing over 40% of the UK’s non-EU trade by value.
Heathrow already handles more non-EU freight by value than all of the other UK airports combined, and twice as much as our 2 largest container ports – Southampton and Felixstowe.
Heathrow has a well-established freight network and is well connected to the rest of the UK. This is crucial to supporting air freight on its wider journey to and from businesses around the UK.
With expansion, Heathrow plans to double its current capacity to handle air freight. This will help more products from throughout the UK get exported to markets across the globe, and provide more opportunities for UK businesses to reach new markets. It will also support growth in sectors dependent on air freight, where exports are highly valuable or time-sensitive, such as the advanced manufacturing sector.
As well as exploiting its existing freight network, the government expects Heathrow Airport to strengthen existing domestic routes and develop new domestic connections. This will help UK regions increase exports.
Chris Welsh MBE, Director of Global and European Policy, Freight Transport Association:
Heathrow is an essential hub of connectivity for passengers and freight, bringing together huge resource, expertise and opportunity in one place.