Heathrow's 'critical' expansion blueprint released

Here is a story making headlines in the economy: Heathrow's 'critical' expansion blueprint released4 hours ago Share Save Add as preferred on GoogleGetty ImagesChancellor Rachel Reeves said Heathrow was currently "not punching its weight" as an international hubThe government has published its blueprint for a third runway at Heathrow, describing expansion of the airport as "critical to national growth". Transport Secretary Heidi Alexander launched a consultation on the renamed Heathrow expansion national policy statement (HENPS), setting out the conditions needed if the project is to be given the go-ahead. Two proposals to expand Heathrow have previously been presented to the government.

The airport's owners, Heathrow Airport Limited (HAL), want to build a full-length, 3,500-metre runway, which would require the M25 motorway being moved. 'Spades in the ground'HAL's scheme is estimated to cost £33bn, including £1. 5bn to move the M25, and is expected to be fully privately financed.

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It would see Heathrow's capacity increase to 756,000 flights and 150 million passengers a year. Tycoon Surinder Arora, who makes a speciality of providing rooms for aircrew near airports, wants his company to install a 2,800-metre runway which would not involve moving the motorway. In November last year, Alexander announced her preference was for a full-length runway.

She said the government considered the development covered by the HENPS was critical to national growth. "This is a signal of the importance the government places on the need for expansion and will be an important additional factor in the planning balance. "Heathrow Airport's expansion plans to cost £49bnWhat's the plan for a third runway at Heathrow Airport?

Heathrow's death sentence for villagesThe draft HENPS requires applicants to demonstrate how the transport network would accommodate increased passenger numbers, including how any necessary road and rail improvements would be delivered. Expansion must be compatible with the UK's legally binding climate targets, not cause new breaches of air quality limits and ensure noise emissions are not worse than 2024 levels, with reductions where possible. Chancellor Rachel Reeves said she was determined to get "spades in the ground" for the third runway, and for it to be built by 2035.

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She also claimed Heathrow was currently "not punching its weight" as a hub airport, and argued that Heathrow was "the perfect example of the problem in the UK in being able to get stuff done", with people knowing "for years, decades" that a third runway was needed but failing to build one. Getty ImagesClimate charities have said the expansion would make the air more toxicHeathrow chief executive Thomas Woldbye said he "strongly welcomed the government has taken this next critical step". He added: "The UK cannot realise its full economic potential without an expanded Heathrow and this is an important step towards delivering the capacity the country needs.

"We will now focus on securing planning permission and delivering this vital project.

Economists are analysing what the news means for the markets.