12 February 2025, 06:27
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Heathrow Airport is set to announce a multibillion-pound investment today ahead of plans to build a proposed third runway.
In a speech on Wednesday, chief executive Thomas Woldbye will unveil plans to boost capacity of Terminals 2 and 5, improve travel connections and change the layout of the airfield.
It comes after Chancellor Rachel Reeves threw her support behind a third runway at Heathrow during a speech on growth last month.
Mr Woldbye is expected to say: “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.
“Heathrow is proud to answer the Chancellor’s call to get Britain building.”
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This plan is expected to bring in thousands of British steel jobs, the Government have said.
Mr Woldbye will add: “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.
“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% 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.”
Heathrow will abide by “strict” environmental safeguards during the project, Mr Woldbye is expected to add.
He will say: “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.
“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.”
The presentation will be made at British Steel’s Scunthorpe plant, which is the only facility making primary steel in the UK.
He will sign the UK Steel Charter, which aims to maximise supply chain opportunities for UK steel producers.
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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.”
Industry minister Sarah Jones, who is expected to give a keynote speech at the launch event on Wednesday, will say: “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 homegrown steel sector and this government’s Industrial Strategy.
“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 – and today’s announcement is great news for British business.
“It is real show of support for domestic steel production and supply chains across the UK. As further infrastructure projects are given the green light, many more opportunities can be seized to boost British business and drive forward growth.”
UK Steel director general Gareth Stace said: “Heathrow signing the UK Steel Charter is a major vote of confidence in UK steelmaking and British businesses full stop.
“With the airport embarking on its largest-ever private investment programme, this commitment unlocks significant opportunities for UK steel producers and supply chains to help deliver critical national infrastructure.”
Campaigners described the planned announcement as “Orwellian”.
Paul McGuinness, chairman of the No 3rd Runway Coalition group, 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.
“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.
“The costs of demolishing villages, diverting roads and rivers and tunnelling over the M25’s busiest junction, to increase Heathrow’s size by an area that is larger than Birmingham International Airport, promises to be inordinately expensive.
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“There seems something Orwellian about this announcement, and this is only re-affirmed 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 £3.3bn and minus £2.2bn over 60 years.”This boost to the British steel industry comes just days after President Donald Trump announced crippling 25% tariffs on imports of the material.
Speaking from the White House on Monday evening, the US president said: “Today I’m simplifying our tariffs on steel and aluminium.
“It’s 25% without exceptions or exemptions.”
As he signed the order, Mr Trump said: “It’s a big deal. This is the beginning of making America rich again.”
He added: “Our nation requires steel and aluminium to be made in America, not in foreign lands.”
Ahead of the announcement, the beleaguered British steel industry body called for decisive action from ministers while unions warned further jobs could be put at risk in a sector which has already suffered badly in recent years.
The UK exported 166,433 tonnes of steel to the US in 2023, the last full year for which figures are available.
Figures from trade body UK Steel showed that in 2024 some 162,716 tonnes were sent to the US, but that does not yet include data from December.
The US is the industry’s second-largest export market after the EU, although the Government said it only accounted for 5% of UK steel exports in 2023.
