Revised Draft Airports National Policy Statement

Baroness Chisholm of Owlpen Excerpts

Thursday 15th March 2018 Lords Chamber

Moved by

[Baroness Chisholm of Owlpen]

That this House takes note of the Revised Draft Airports National Policy Statement: new runway capacity and infrastructure at airports in the South East of England.

[Baroness Chisholm of Owlpen (Con)]

My Lords, I start by sharing the apologies of my noble friend Lady Sugg, who is under a three-line Whip today by her mother. She is at the Palace receiving an honour, so obviously there was no way that my noble friend was going to be able to miss that today.

My noble friend and I welcome this debate on the Government’s revised draft airports National Policy Statement, or NPS. It might be helpful if I put today’s debate into context in terms of the process the Government have followed to date. The Airports Commission reported in July 2015 and, following detailed consideration of its findings and further work, the Government announced their preference for the Heathrow north-west runway scheme in October 2016. Since then, we have published a draft airports NPS and conducted two periods of public consultation, receiving over 80,000 responses in total. We are now carefully considering those responses. It is worth emphasising that we are still in a period of consideration following public consultation and no final decisions on the airports NPS have been taken. Should the Government decide to proceed, any proposed airports NPS would be laid before Parliament and an opportunity provided for debate in both Houses.

What is the purpose of the NPS? The concept of an NPS was introduced by the Planning Act 2008, which was enacted following the Heathrow terminal 5 inquiry, which lasted nearly four years. The draft airports NPS has a specific purpose. If adopted, it would provide planning guidance for the promoter of the additional runway. It sets out at a strategic level the need for development and establishes clear, high-level policies by which an application for development consent for the additional runway would be decided.

It might be helpful if I say what the draft NPS does not do. It does not give permission for a new runway. Development consent would be sought following the preparation of a more detailed design by the scheme promoter and would require public examination of the proposals in the light of the policies set out in the NPS. It is then the role of the Secretary of State, taking into account the advice of the planning inspectorate, to determine whether to grant development consent.

Clearly, there is a need for expansion. The UK currently has the third-largest aviation sector in the world—second only to the United States and China—contributing more than £22 billion to UK GDP. In 2016, UK airports handled 268 million passengers—up 7% on 2015—and 2.4 million tonnes of freight. Our airports continue to grow their business, with more passengers passing through their doors each year. Heathrow is the busiest two-runway airport in the world. Evidence shows that unless we take action, all five of London’s main airports will be completely full by the mid-2030s.

Let me set out why a new north-west runway at Heathrow is the Government’s preference for additional capacity in the south-east. Our analysis shows that a new north-west runway would deliver benefits of up to £74 billion to passengers and the wider economy over 60 years. Of the shortlisted schemes assessed by the Airports Commission, the north-west runway scheme at Heathrow delivers the greatest benefits soonest. An expanded Heathrow would offer the greatest choice and frequency of vital long-haul routes. It would secure the UK’s status as a global aviation hub, enhancing our ability to compete with other European and Middle Eastern airports. It would provide new domestic connections —moving from eight to 14 domestic routes—and greater frequency, enabling the nations and regions to benefit from onward connections to long-haul destinations.

I mentioned freight earlier. Heathrow handles more freight by value than all other UK airports combined. Heathrow has superior connections to the rest of the UK through road, rail and domestic flights. Expansion is also expected to generate up to 114,000 additional jobs in the local area by 2030, and Heathrow Airport has pledged 5,000 additional apprenticeships.

I want to emphasise that the draft NPS makes it clear that expansion at Heathrow would be allowed to proceed only if accompanied by a world-class package of compensation along with mitigation measures to reduce impacts. Without going through all the measures, let me give noble Lords a flavour of the proposals. On community compensation, the proposed package includes above-statutory levels of compensation for property owners. Heathrow Airport Limited has pledged that home owners in compulsory and voluntary purchase zones would receive 125% of unblighted market value, plus stamp duty and costs. The airport has also pledged in excess of £700 million to noise-insulate residential properties, fully insulating homes most affected and providing a contribution of £3,000 towards noise insulation for qualifying homes further from the airport. They have also promised to set aside an additional £40 million to noise-insulate schools and community buildings. The draft NPS also requires the creation of a community compensation fund worth up to £50 million per year to benefit local communities.

Moving on to environmental mitigation, as we all know, noise is a major concern for communities around Heathrow. Under the Government’s draft proposals, the scheme promoter would be expected to deliver a number of mitigating measures to reduce the impact of aircraft noise. In addition to the comprehensive noise insulation package, these are expected to include a new six and a half-hour ban on scheduled night flights. This ban would help address noise from early morning arrivals at the airport—one of the most frequently expressed concerns of local communities. Expansion would also result in more reliable periods of respite. The draft NPS makes it clear that the Government expect noise mitigation measures to limit, and where possible reduce, the impact of aircraft noise compared to the 2013 baseline assessed by the Airports Commission.

The Government have consistently made it clear that expansion at Heathrow would be allowed to go ahead only if it could be delivered in compliance with legal obligations on air quality. It is the Government’s view, based on expert analysis, that the Heathrow north-west runway scheme can be delivered in compliance with those legal obligations, with a suitable package of policy and mitigation measures. Importantly, that analysis does not take account of any of the additional measures the scheme promoter would take to address emissions. For example, the NPS proposes a public transport mode share for passengers of at least 50% by 2030, and Heathrow plans to consider a low-emission zone.

Finally, the Government have also considered the impact of the updated aviation demand forecasts on carbon emissions. Our analysis provides further support for the Airports Commission’s assessment that any of the three schemes, including the Heathrow north-west runway, could be delivered within the UK’s obligations under the Climate Change Act.

I appreciate that there are many views on airport expansion and my noble friend and I look forward to hearing them in the debate. I beg to move.