Question to the Department for Transport:

To ask Her Majesty's Government what steps, if any, they are taking to ensure that (1) the costs of Heathrow Airport expansion do not rise above £14 billion, and (2) that airlines, passengers and taxpayers will not cover any extra amount should costs rise above that level.

The Government is clear that the Northwest Runway scheme at Heathrow will be financed by the private sector. Ahead of the decision to designate the Airports National Policy Statement (NPS) the Government and its independent expert advisors concluded that, so far as can be assessed at this early stage of the process, Heathrow Airport Limited (HAL) is able to privately finance expansion without Government support.

The Secretary of State for Transport set out a clear ambition in 2016 for airport charges to remain as close as possible to current levels in real terms. The Secretary of State has re-commissioned the CAA to oversee, and report on, how well Heathrow Airport Limited is engaging with the airline community on its plans for expansion with the objective of achieving value for money for the consumer. This follows on from a previous commission during which Heathrow announced the identification of potential costs savings of up to £2.5bn.

Ultimately, the CAA will determine the level of airport charges in lines with its primary duty to further the interests of consumers (passengers and freight operators). In its most recent consultation the CAA noted that there are “credible scenarios in which capacity expansion can be delivered affordably and financeably, with airport charges per passenger remaining close to current levels in real terms and line with the ambition expressed by the SoS [Secretary of State] on these matters in 2016”.