NEWS / Infrastructure Intelligence / Heathrow unveils ‘shovel-ready’ £49bn expansion plans

Plans for Heathrow's third runway
Image: Heathrow

04 AUG 2025

HEATHROW UNVEILS ‘SHOVEL-READY’ £49BN EXPANSION PLANS

Heathrow says it can deliver an operational third runway for £21bn within a decade, unlocking jobs and growth across the whole of the UK.

But it says government must move at pace with necessary policy changes and an appropriate regulatory framework.

The 100% privately financed proposal promises more choice, better value and global reach for passengers, airlines and exporters — unlocking at least 30 new destinations, serving up to 150 million passengers on up to 756,000 flights each year and driving down fares through increased choice and competition

The airport says expanding Heathrow would add 0.43% to the UK’s GDP with 60% of the benefit felt outside London and the South-East and grow the UK’s most valuable port by 50%

Heathrow’s blueprint, which has been submitted to government, includes:

  • A north-western runway up to 3,500m – a design that already has parliamentary support
  • Increased capacity to serve up to 756,000 flights and 150m passengers
  • A brand-new terminal ‘T5X’, expanding Terminal 2 and three new satellite terminals

The investment consists of three main elements - £21bn for the new runway and airfield infrastructure (up from £14bn in 2018 due to construction inflation), £12bn for new terminal and stand capacity (T5X), and £15bn for modernising the current airport through expanding Terminal 2 and ultimately closing Terminal 3.

The airport says a third runway and supporting infrastructure can be ready within a decade and the full investment across all terminals would take place over the coming decades.

Heathrow has also confirmed its commitment to reach net zero by 2050 as well as setting targets on noise reduction and air quality.

Heathrow CEO Thomas Woldbye said: “It has never been more important or urgent to expand Heathrow. We are effectively operating at capacity to the detriment of trade and connectivity.

“With a green light from government and the correct policy support underpinned by a fit for purpose regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country. We are uniquely placed to do this for the country; it is time to clear the way for take-off.”

If the government implements the necessary policy changes, Heathrow plans to consult with airlines, the local community, local authorities, businesses and others from next year. A planning application is expected to be submitted in 2028.

Industry has welcomed the announcement including the Association for Consultancy and Engineering (ACE).  Director of public affairs, Ben Brittain, said: “This is exactly the kind of ambitious, privately funded infrastructure the UK needs. Heathrow is proving that growth, sustainability, and global competitiveness can go hand in hand, with the private sector leading the charge.

“With government support, Heathrow’s expansion signals that the UK is serious about global competitiveness. It sets a benchmark for future infrastructure commercially driven, long-term in vision, and delivered without excessive reliance on the public purse.”

The news from Heathrow came just a day after rival plans for the site were announced by The Arora Group.

The Heathrow West proposal has been developed alongside Bechtel, leaders in airport development, which has delivered just under 200 airport projects globally.

Heathrow West proposals - image: Arora Group

Bechtel’s design avoids the need to build over the M25, allowing for faster delivery, reduced costs and improved environmental impact

The 200-page costed proposal and timeline describe the delivery of a fully operational runway by 2035 and a new Terminal 6 opened in two phases - T6A in 2036 and T6B in 2040.

Both proposals await government feedback.

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