Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what information her department holds on the potential benefit of the (a) construction and (b) operation of a western rail link to Heathrow Airport on (i) trends in the level of economic growth (ii) the environment and (iii) civil society.
Answered by Keir Mather - Parliamentary Under-Secretary (Department for Transport)
The economic and societal benefits of a western rail link to Heathrow Airport were previously assessed as part of a business case development process which concluded in 2021. No further work to assess the benefits of a rail link has been undertaken by DfT since then, as Heathrow expansion plans were not progressed at the time. Given changes in commuter and leisure travel patterns and the wider economy since that time, the benefits of any such scheme will need to be revisited. Any promoter is expected to develop a clear surface access strategy as part of their expansion plans, and any necessary surface access improvements will be financed through private funding.
Asked by: Lord Bourne of Aberystwyth (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to deliver major infrastructure projects to boost growth in the economy.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government announced its new fiscal rules at the Budget in October, including an investment rule. This rule keeps debt on a sustainable path while allowing the step change needed in investment, by targeting a measure of debt that captures not just the debt that government owes but also financial assets that are expected to generate future returns. This will deliver an additional £100 billion of growth-enhancing capital spending, which catalyses private sector investment in more housing, better transport links, and clean energy.
In January, the Chancellor also set out our support for private investment, including a third runway at Heathrow, a £10 billion in a data centre in Northumberland and a £1 billion advanced manufacturing investment in North Wales.
As part of the Government's growth agenda, we will publish a 10-year Infrastructure Strategy alongside the 2025 Spending Review, which seeks to reduce uncertainty by bringing together a long-term plan for the country’s social, economic, and housing infrastructure.
The newly created National Infrastructure and Service Transformation Authority will bring oversight of strategy and delivery under one roof, supporting the development and implementation of the 10-year infrastructure strategy in conjunction with industry.
The Planning and Infrastructure Bill, currently before Parliament, will streamline the planning system to deliver a faster and more certain consenting process for major infrastructure projects. This is part of the government's wider actions to deliver a pro-growth planning system, including revising the National Planning and Policy Framework and reviewing the role of statutory consultees.
Asked by: Rosena Allin-Khan (Labour - Tooting)
Question to the Department for Transport:
To ask the Secretary of State for Transport, if he will assess the effect of building a third runway at Heathrow on the residents of Tooting constituency.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Following Parliament’s historic decision to endorse expansion at Heathrow, the Airports National Policy Statement was designated. This allows an applicant to bring forward an application for development consent, which would be submitted to the Planning Inspectorate. Expansion at Heathrow would bring up to £74 billion of benefits to passengers and the wider economy.
As part of the next stage of the process, an applicant will need to carry out further consultation with local communities on the finer details of their scheme design and the associated compensation and mitigation packages. The applicant would also be expected to conduct a full environmental impact assessment. Alongside this an applicant will need to develop plans for the necessary airspace changes around the airport, including new flightpaths. These will also be subject to consultation with local communities, ahead of being submitted to the Civil Aviation Authority for approval.
The Government undertook a strategic assessment of the effects of Heathrow expansion on local communities surrounding the airport, as part of the Appraisal of Sustainability (AoS). This assessment included consideration of a range of effects, including those to the environment, and the local economy. The AoS was first published online in February 2017 and consulted on as part of the Airports National Policy Statement process. The AoS was available for MPs consideration before the Parliament’s historic decision to back expansion at Heathrow.
Asked by: Emma Reynolds (Labour - Wycombe)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what comparative assessment his Department has made of the potential effect of a (a) third runway at Heathrow airport and (b) second runway at Birmingham airport on the economy of (i) Wolverhampton and (ii) the West Midlands.
Answered by Jesse Norman - Shadow Leader of the House of Commons
A Northwest Runway at Heathrow will improve the UK’s connectivity, with more frequent services to important global destinations benefitting passengers and freight-operators across the UK. While Heathrow expansion will help to secure the UK’s status as a global aviation hub, we will also see airports across the country continuing to develop their point-to-point networks.
This conclusion is supported by the analysis which shows that passenger numbers and international flights at airports outside of London are expected to increase by 80 per cent and 71 per cent respectively between 2016 and 2050 with a third runway at Heathrow.
Whilst the Department has not made an assessment of the effect on the local economy in Wolverhampton and the West Midlands, these areas are expected to benefit from the improvement in regional and global connectivity, which is expected to deliver up to £74 billion worth of benefits to passengers and the wider economy.
The Airports Commission found that whilst four out of London’s five main airports are expected to be full within the next ten years, airports outside the South East of England, such as Birmingham, have capacity to grow by increasing utilisation of their existing runway(s).
As the Secretary of State set out in his oral statement on 5 June, any new operational runway at Heathrow is still a number of years away. This is why Government supports airports beyond Heathrow making best use of their existing runways. However, we recognise that the development of airports can have positive and negative effects. We consider that any proposals should be judged on their individual merits by the relevant planning authority, taking careful account of all relevant considerations, particularly economic and environmental.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the Department for Transport:
To ask the Secretary of State for Transport, whether his Department has made an assessment of the effect on the global competitiveness of Heathrow Airport of an increase in landing charges at that airport of (a) £1, (b) £2, (c) £3, (d) £4, (e) £5 and (f) £10.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Secretary of State set out a clear ambition in 2016 for airport charges to remain as close as possible to current levels.
In the context of expansion, the Civil Aviation Authority will determine an appropriate level of airport charges in line with its statutory duty to further the interest of consumers. The CAA set out in its April consultation that there are credible scenarios in which expansion can be delivered affordably and financeably with airport charges remaining close to current levels – in line with the Secretary of State’s ambition.
Separately, Heathrow have also set out potential scheme savings of up to £2.5 billion and confirmed they are confident they can deliver the Secretary of State’s ambition.
Both the Government and the Airport Commission undertook sensitivity analysis which showed that even if airport charges did rise this would not materially affect the case for expansion.
By contrast, the Government is absolutely clear of the effect of not taking forward expansion; doing nothing could cost around £21 - £23 billion to passengers and around £30 - £45 billion to the wider economy over 60 years.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the effect of higher landing charges at Heathrow Airport on (a) the UK's and (b) Heathrow Airport's global competitiveness.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Airport charges at Heathrow Airport have fallen by almost £2 per passenger in real terms since 2014. In the context of expansion, the Civil Aviation Authority will determine an appropriate level of airport charges in line with its statutory duty to further the interest of consumers. The Secretary of State also set out a clear ambition in 2016 for airport charges to remain as close as possible to current levels.
The Airports Commission found that if there were any increase in charges at Heathrow as a result of expansion this would likely be absorbed by airlines, with passenger fares remaining unaffected or even falling further after the capacity constraints are released. The Government is also clear that the expansion of Heathrow will provide a significant boost to passengers and the wider economy even if airport charges were to increase modestly, and were passed on to passengers.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what estimate he has made of the total economic benefit to each region from expansion at Heathrow Airport.
Answered by John Hayes
The Government’s latest estimate, published on 2 February, was that a new runway at Heathrow will deliver benefits to passengers and the wider UK economy of up to £61 billion.
Regions across the country should benefit from new destinations, extra seats and increased frequency of service created by increased capacity at Heathrow.
As part of the consultation on the draft Airports National Policy Statement (NPS) the government was clear that further work was underway to update the evidence base, including revised aviation demand forecasts. The Secretary of State for Transport announced on 7 September that there is a need to conduct a short period of further consultation to allow this updated evidence to be taken into account.
Asked by: Lord Goldsmith of Richmond Park (Conservative - Life peer)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent assessment he has made of the economic benefits to the UK of the expansion of Heathrow Airport.
Answered by John Hayes
The Government’s latest estimate, published on 2 February, was that a new runway at Heathrow will deliver benefits to passengers and the wider UK economy of up to £61 billion.
Regions across the country should benefit from new destinations, extra seats and increased frequency of service created by increased capacity at Heathrow. Heathrow expansion is also expected to deliver tens of thousands of additional local jobs by 2030, and while it is not possible to precisely quantify the impacts on regional jobs and GDP, expanding airport capacity in the South East will support economic growth in the UK’s regions.
Nevertheless, as part of the consultation on the draft Airports National Policy Statement (NPS) the government was clear that further work was underway to update the evidence base, including revised aviation demand forecasts. The Secretary of State for Transport announced on 7 September that there is a need to conduct a short period of further consultation to allow this updated evidence to be taken into account.
Asked by: Tania Mathias (Conservative - Twickenham)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what recent assessment he has made of the potential (a) economic benefits and (b) level of new jobs resulting from the third runway at Heathrow Airport by region of the UK.
Answered by John Hayes
The economic benefits of a new runway at Heathrow have been assessed at a national level. It is estimated that a new runway will deliver up to £61 billion of benefits to passengers and the wider UK economy.
The local jobs created at and around the airport have also been assessed, with Heathrow expansion expected to deliver up to 77,000 additional local jobs by 2030. While it is not possible to precisely quantify the impacts on regional jobs and GDP, expanding airport capacity in the South East will support economic growth in the UK’s regions.
Asked by: Mark Menzies (Independent - Fylde)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what assessment he has made of the economic implications of the recent announcement on airport capacity for the North West.
Answered by John Hayes
An expanded Heathrow will better connect people and businesses to new long haul destinations and growing world markets. It will create thousands of jobs, boost our economy and help secure the UK’s position globally. A new runway will deliver up to £61 billion of benefits to passengers and the wider UK economy.
The Department has undertaken an economic assessment of the impact of a new runway at Heathrow at a national level, taking account of all regions. As with other regions, the North West should benefit from access to new destinations, extra seats and increased frequency of service created by expansion at Heathrow.