Comment
Heathrow expansion gets the green light
In laying the Government’s final proposal for an Airports National Policy Statement (NPS) before parliament, on Tuesday 5 June, Transport Secretary Chris Grayling has pushed the long-standing battle over airport expansion closer to a conclusion. A vote will now take place in Parliament during the next few weeks.
The overwhelming need for increased airport capacity around London is well understood but the controversy of agreeing where this capacity should be provided has divided political decision-making for years. However, with Brexit negotiations progressing, the pressure to provide a major economic stimulus has focussed the attention of the Cabinet. Certainly the proposals will be broadly welcomed by the business community in the South East. The NPS confirms that Heathrow Airport already directly supports 75,000 jobs and it is anticipated that the third runway could generate up to 114,000 additional jobs in the local area, by 2030.
Whilst the Prime Minister has marshalled her Cabinet into supporting Heathrow’s expansion (at least publically), there are many in Parliament who stand to lose politically. Some potential rivals may also see an opportunity to use the diversity of political view to undermine the PM. It is certainly possible that the Government, with its marginal parliamentary majority, will need to rely on opposition support to push the decision through. Indeed, there have already been calls for a ‘free vote’ on the issue.
The development industry has much to gain from Heathrow’s expansion. Positive economic impacts will also be felt across a wide range of sectors, including services, logistics and advanced manufacturing, as the airport enhances its role as a premier global passenger and freight hub. The property requirements of these sectors will need to be met in proximate locations. The generation of thousands of new jobs will also engender a requirement for thousands of additional new homes. Local Planning Authorities in London and the Thames Valley will have to proactively plan to address the pressures on housing affordability, which are already set to increase with the completion of Crossrail.
Turley anticipates that new regional-level responses will be needed to maximise the benefits of this investment. We will be contacting Local Authorities, Local Enterprise Partnerships and Government, to support the case for a strategic response to this once in a generation opportunity. In this respect, Peter Lawson, Turley Head of Planning for the South East said:
“We welcome the announcement regarding Heathrow Expansion and fully recognise the substantive economic benefits that this will bring. We look forward to engaging with local authorities in the area to promote development opportunities and wider infrastructure that the Heathrow expansion will bring.
“We also call on local authorities to take a proactive approach to recognising the impact this decision could make on housing affordability in the area and ensure that their Local Plans are sufficiently robust and forward thinking to meet the challenge of additional housing need.”
For further information on the impacts and benefits of the Heathrow decision, and to find out how Turley can help you in the South East, please contact Peter Lawson or Christopher Roberts.
6 June 2018