Government picks Heathrow’s £49bn third runway plan over cheaper rival option

The government has chosen Heathrow Airport’s £49bn proposal for a third runway over a rival scheme put forward by hotel developer Arora Group.

In an announcement this morning, the Department for Transport said it had opted for the airport’s more expensive proposal for a 3.5km-long runway, which will require the construction of a new road tunnel beneath the airport.

Arora Group had argued its cheaper £25bn scheme, designed by Scott Brownrigg and US engineering giant Bechtel, would have saved costs with a shorter 2.8km runway and less roadworks.

However, the DfT said Heathrow’s proposal offered “the most deliverable option” and provided the greatest likelihood of meeting the government’s goal of making a decision on the development within this Parliament.

The rival Arora scheme was unveiled at the beginning of August with the DfT spending the last three months carrying out a “rigorous assessment” of the two proposals.

The department said its decision, which will shape the government’s review of the Airports National Policy Statement (ANPS), does not represent a “final decision” on a third runway or design, which will remain under consideration for the remainder of the review.

However, it said the choice marked a further step towards its goal to see the first planes taking off from the new runway by 2035.

Transport secretary Heidi Alexander said: “Today is another important step to enable a third runway and build on these benefits, setting the direction for the remainder of our work to get the policy framework in place for airport expansion. 

“This will allow a decision on a third runway plan this parliament which meets our key tests including on the environment and economic growth.  

“We’re acting swiftly and decisively to get this project off the ground so we can realise its transformational potential for passengers, businesses, and our economy sooner.”

Heathrow’s proposals are understood to be largely the same as Grimshaw’s 2016 proposal for the expansion, which was due to open in 2026. The plan was stalled by a Supreme Court ruling in 2020 and falling passenger numbers during the pandemic. 

The scheme, first proposed in the 1960s, continues to generate controversy over fears of added noise pollution to surrounding communities and its impact on the government’s climate targets.

The government insisted the expansion will meet the UK’s legally binding climate obligations, along with air quality and noise obligations.

Government climate watchdog the Climate Change Committee will also be consulted before a final decision to ensure expansion is consistent with the net zero framework, the DfT said, with Alexander writing to the committee today to request advice on the scheme.

The announcement comes a day before chancellor Rachel Reeves’ autumn Budget, expected at lunchtime tomorrow. 

Reeves said the government was “taking action where previous governments hesitated, and moving forward with Heathrow’s third runway to drive economic growth, international investment and better connections for our country”.

The government’s review of the ANPS was launched last month to consider airport expansion in light of new environmental and climate obligations and sets out the government’s criteria to consider future planning applications.