A major £1.1 billion investment in London Stansted Airport is expected to create over 5,000 jobs and double the airport's annual economic contribution to the UK, the government has announced.

The five-year expansion plan, unveiled by the Prime Minister at the International Investment Summit in London, will see Stansted's existing terminal extended by a third.

This development aims to unlock the full potential of the airport's runway, securing new air routes to key business and holiday destinations.

Chancellor Rachel Reeves and Transport Secretary Louise Haigh welcomed the investment empathising it will grow the British economy and boost opportunities.

Transport Secretary, Louise Haigh, said: “Transport is central to this government’s core mission of growing the economy.

“This is about giving companies like Manchester Airports Group the confidence to invest, boosting regional and national economic growth and supporting the aviation sector while also meeting our existing environmental obligations.”

The funding package includes £600 million for the terminal extension and £500 million to improve the existing terminal and wider airport estate.

Manchester Airports Group (MAG), owner of London Stansted, is in the final stages of the procurement process.

Ken O’Toole, Chief Executive Officer of MAG said: “By investing more than £1 billion in Stansted over the next 5 years, we will be able to connect people and businesses in London and the east of England to even more global destinations, while welcoming millions more visitors to the UK.

“We are proud to be investing in our infrastructure in a way that will create jobs and stimulate trade, investment and tourism.”

Construction is expected to commence in 2025 and take between two and three years to complete.

According to the government, the expansion will significantly enhance passengers' experience throughout their journey.

Plans include a larger security hall, an airfield taxiway upgrade, and an overhaul of gate rooms to increase capacity and comfort for travellers before boarding.

In addition to infrastructure improvements, the investment will deliver a 14.3 megawatt on-site solar farm to support the airport's current and increasing electricity demands.

This follows the recent creation of a new electric vehicle charging forecourt at the airport, underlining Stansted's commitment to sustainable growth.

The expansion plans, which already have necessary planning permissions, are in line with previously agreed passenger and flight numbers.

Once completed, the project is expected to double Stansted's annual economic contribution to the UK to £2 billion and boost local supply chains.