An economic paper, published by the Department for Transport in June, has revealed that expanding Heathrow airport will take thousands of jobs from other regions of the UK, including almost 10,000 from the West Midlands alone.
The paper shows that airports in England and Wales are likely to lose millions of passengers if Heathrow builds a third runway, dealing a significant blow to regional jobs. Birmingham airport is set to lose out on 7.5 million passengers a year by 2050, which, according to economists, will equate to about 9,500 jobs foregone at the airport and in its supply chain. These findings could cast further doubt over the political support for the expansion.
The previous chancellor, Rachel Reeves, was a vocal champion of the plans for a third runway, however Andy Burnham, the new Prime Minister of the UK, has said that too much infrastructure budget is spent on the south of England and has promised to rebalance spending - with No. 10 North opening on Friday 24 July.
The New Economics Foundation (NEF) said the report showed that the jobs created at Heathrow would primarily represent jobs displaced from around the country, however, the government said that the NEF analysis was focusing on a limited period and insisted that Heathrow expansion would bring benefits nationwide.
The report for the DfT followed the launch of a consultation on the Heathrow expansion national policy statement, which MPs must approve to build the third runway.
DfT modelling published alongside it also confirms that the overall economic boost could be a fraction of what ministers had hoped, with the impact report revealing that the overall GDP impact would be only up to 0.05% per year.
Alex Chapman, head of economic policy at the NEF, said that Heathrow’s proposed third runway is looking more like a plan to move jobs and investment to London and the south-east rather than overall growth across the country.
The government stands by their claims that the aviation industry would grow due to the Heathrow expansion, saying that there is potential for over 60,000 local jobs and up to 40% of the £2.6bn boost to the economy outside of London and the south-east.
Currently, the Heathrow expansion plan is to build a 3,500-metre runway passing over the current location of the M25 motorway, at an estimated cost of £33bn, allowing the airport to operate up to 756,000 flights instead of 480,000 each year. Ministers have promised to accelerate the building of Heathrow’s third runway to open by 2035.