The UK government has restarted the policy process that will govern the expansion of London Heathrow’s third runway and confirmed that a preferred development scheme will be chosen by the end of November.
Transport Secretary Heidi Alexander said that the government is reviewing the 2018 Airports National Policy Statement (ANPS), which provides the planning framework for major airport expansion, citing the need to reflect new environmental and climate obligations.
The government is assessing two rival proposals for the third runway—one from Heathrow Airport Ltd. and another from the Arora Group, led by hotel and property investor Surinder Arora. Both bidders claim they can deliver a new runway by 2035.
“We are seeking further information on the two proposed schemes with a view to reaching a final decision on a single scheme to inform the remainder of the ANPS review by the end of November,” Alexander told Parliament.
The updated ANPS will set out the conditions under which Heathrow expansion can proceed. Alexander said the chosen scheme will be required to meet four key tests: that it contributes to national economic growth; complies with air quality and noise standards; and aligns with legal climate commitments, including the UK’s net-zero targets. The Climate Change Committee will be asked to provide independent advice to ensure consistency with the country’s decarbonization pathway.
The government’s goal is to publish a revised draft ANPS for consultation by summer 2026, allowing a final planning decision before the end of the current Parliament. The Transport Secretary said expansion must be privately financed and bring “no cost to taxpayers.”
The government has also suggested Heathrow could be designated “critical national priority infrastructure,” a classification that would require enhanced security and resilience measures but could also streamline approvals.
Heathrow Airport Ltd.’s £49 billion ($65 billion) plan involves constructing a 3,500 m (11,480 ft.) runway west of the existing airfield, requiring a section of the M25 motorway to be moved and tunneled beneath the new strip. The scheme also includes a new terminal complex, dubbed T5X, and upgrades to existing terminals. Heathrow argues the project would add capacity for up to 276,000 additional flights annually and increase total passenger capacity to 150 million per year.
Meanwhile, Arora Group’s proposal comprises a shorter, 2,800 m runway that would avoid the M25 altogether. The £25 billion plan, developed with U.S. engineering firm Bechtel, proposes a new terminal west of Terminal 5, with phased opening from 2036. Arora says its design offers lower cost, reduced disruption and faster delivery.
AirportsUK CEO Karen Dee said: “Delivering critical national infrastructure, including airport capacity, is vital if the UK is to increase economic growth. Setting a clear policy framework and providing a predictable, cost-effective and timely approvals process will help bring forward investment, create more connectivity and drive productivity.”
Airlines UK Chief Executive Tim Alderslade added that carriers support airport expansion “but any scheme at Heathrow must be affordable, deliverable and aligned with the industry's net zero commitments, principally through the scale-up of advanced SAF and a modernized UK airspace.”
The ANPS review comes as Heathrow posted strong financial and operational results. The airport reported revenue of £2.7 billion for the nine months to Sept. 30, up 2% year-on-year, while adjusted EBITDA dipped 0.2% to £1.53 billion due to higher compliance and maintenance costs. Passenger traffic reached 63.3 million, with a record 23.4 million in the third quarter, including 8 million in August.
Related Content
