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Heathrow Airport’s expansion plans to cost £49bn, plans reveal

Heathrow Airport has revealed details of its plan to expand and modernise the airport at a cost of £49bn. Thomas Woldbye, CEO of Heathrow Airport, said expansion was “urgent” as the airport was currently working at capacity, “to the detriment of trade and connectivity”. The work would be funded by private finance.

The government has backed plans for a third runway, with Chancellor Rachel Reeves saying it would “make Britain the world’s best connected place to do business”. However, the plans face opposition from environmental groups, politicians, and locals. London’s mayor Sir Sadiq Khan said it would have a “severe impact on noise, air pollution and meeting our climate change targets”.

The plans come a day after the deadline set by the government for parties to submit proposals. Heathrow’s plans, which it estimates would be completed within a decade, include the creation of a third runway, called the “North-Western Runway”, which would be up to 3,500m long. Heathrow bosses say this will increase capacity to 756,000 flights and 150m passengers a year.

Heathrow said it would cost £21bn to build the third runway, which includes procuring the land, changing the M25 and other associated infrastructure costs, while building the new terminal would be £12bn and modernising the current airport’s infrastructure £15bn. Due to rounding, it will total £49bn.

A spokesperson added the plans would grow the UK economy by 0.43% GDP. The plans revealed by Heathrow were welcomed by business groups and airline companies. A joint statement from the Confederation of British Industry, British Chambers of Commerce, MakeUK, Federation of Small Businesses and Institute of Directors, said it was “an investment in the nation’s future”.

However, the plans were heavily criticised by groups who called the environmental justifications for the plans as “hopeful marketing spin”. Dr Douglas Parr, policy director for Greenpeace UK, said the government had “decided yet again to prioritise more leisure opportunities for a comparatively small group of frequent fliers, whilst the rest of us have to live with the consequences of their disproportionate polluting”.

Heathrow’s plans follow the publication of a rival proposal by the Arora Group, which has outlined a way to expand the airport without needing to redirect the M25. Owner of the group, hotel tycoon Surinder Arora, said the creation of a third runway and a new terminal, under his plans, had a cost estimate of under £25bn, not including the redevelopment of the airport’s existing central area.

When asked about the added expense of altering the M25 to accommodate a new, third runway, Heathrow’s CEO said: “The whole conversation about the M25 has been slightly exaggerated”, and that disruption to drivers would be minimal. Transport Secretary Heidi Alexander said the two proposals were a “significant step towards unlocking growth, creating jobs, and delivering vital national infrastructure”.

BBC London’s political editor Karl Mercer said: “History has not been kind to plans to build a third runway, whoever has put them forward, and whichever colour government is in power. Having bidders interested is only half the battle – the hardest half will be getting it delivered.”

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