Will the third runway in Heathro help in the development of UK?

This is an important week for the government and the UK’s pledge to increase the economy.

On Wednesday, Chancellor Rachel Raves is expected to announce the third runway plan at Heathro Airport as part of measures to promote investment. Broken some lives in Britain’s weak performance,

Reeves will repeat that development is a priority.

But is the expansion of the country’s largest airport the right way to accelerate the economy immediately?

In the context of real spades in the Heathro ground, there is no brief answer.

Thoughts have been going on for many years on the third runway. It has also been pushed into long grass on many occasions.

The logic in favor has always been economic. Large airports produce jobs, promote business and bring both trading passengers and tourists.

Heathro currently handles a trade of £ 200 billion per year and – the argument of the owner of the airport – provides an important opportunity for exports, especially for small and medium -sized businesses.

But Heathro’s infrastructure is deteriorating rapidly.

Last year, a record 83.9 million passengers passed through its terminals and two of its runways handled about 1,300 landing and take-off every day.

Flights from the airport are currently limited to a maximum of 480,000 per year and practically it has reached that extent.

The third runway will increase the number of potentially allowed flights to 720,000.

The expansion of the airport, theoretically, will provide an opportunity for development that does not exist at this time.

Construction Project itself – The largest infrastructure scheme in Europe privately funded – will create thousands of jobs.

But the third runway in Heathro is unlikely to become a reality for many years.

First, there should be a formal planning process. This type of major infrastructure project will require development consent order and until the government does not change the plan process, it will take 18 months to two years.

Secondly, it is highly likely that any decision in favor of the third runway will be subject to judicial review.

The expansion of Heathrow is highly controversial-opponents include environmental groups, local authorities as well as residents of the vicinity, and this stage may take one and a half years more.

Therefore, even with favorable winds, it may take at least three years to reach the construction phase, which is expected to take six or seven more years.

In terms of what can be achieved quickly, which can potentially create bankable short-term benefits, different projects are well advanced to expand gatwiks and luteon airports and a few weeks by the Transport Secretary Can be signed inside.

Supporters say the real value of supporting the third runway in Heathro is not a less solid but less significant signal for investors about the UK’s attitude towards major infrastructure projects.

Uncertainty on the construction of HS2 high speed line under the previous Conservative Government is believed to have reduced the trust in the country’s ability to convert ambitious plans into reality.

A strong commitment to Heathro expansion can help in reverse the perception.

The cost of this scheme is expected to be around £ 20 billion, internal sources say that firm government support will be important if it moves forward.

Although the project will be funded privately, the people associated with the scheme have warned that it cannot proceed without close coordination with the ministers – including a change in the policy structure which determines that the investment of investment How the cost can be recovered.

For the Chancellor itself, now there may be a short -term benefit in emphasizing the plans for the expansion of the airport.

Some economists have argued that if additional increase in the economic forecasts being prepared by the Budget Responsibility Office can be included, it can make it easier for them to fulfill the financial rules within this Parliament. Is.

If not, RiVs is likely to obstruct your own “iron” fiscal rules to pay day -to -day expenses from tax receipts by 2029 – which means cut or further increase in expenditure.

Additional reporting by Dearbel Jordan.