Plans for a third runway at London Heathrow are advancing after the transport secretary approved the airport’s £33bn proposal over a rival bid. Heathrow’s plan involves a 3,500-metre runway, a £1.5bn diversion of the nearby M25 motorway including a tunnel and bridges, and the demolition of approximately 750 homes, with operations expected by 2035.
The proposal was chosen over a competing plan from Surinder Arora and the Arora Group, which would have built a 2,800-metre runway without affecting the M25 but, according to Heathrow, would have required the demolition of twice as many homes. Transport Secretary Heidi Alexander described Heathrow’s plan as “the most credible and deliverable option” of the two.
Heathrow handled a record 23.4 million passengers this summer, with executives noting the airport is approaching capacity. The approved proposal will influence the review of the Airports National Policy Statement (ANPS), the framework governing planning decisions on the third runway. Any amendments to the ANPS will be subject to consultation next summer, allowing businesses, communities and the aviation sector to provide feedback.
Alexander said: “Heathrow is our only hub airport which supports trade, tourism and hundreds of thousands of jobs, underpinning prosperity not only in the South East but across the UK. Today is another important step to enable a third runway and build on these benefits… This will allow a decision on a third runway plan this parliament which meets our key tests including on the environment and economic growth.”
The government’s independent Climate Change Committee will be consulted to ensure the expansion aligns with net zero targets. The transport secretary has requested advice on the role of aviation in achieving the UK’s carbon budgets and on proposed ANPS updates.
Chancellor Rachel Reeves said: “We’re 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… creating over 100,000 jobs, boosting our economy, and giving businesses and communities the certainty they need to thrive.”
The government is also modernising UK airspace, with London’s airspace set to be redrawn to allow more departures from a third runway.
Business leaders have welcomed the development. Shevaun Haviland, director general of the British Chambers of Commerce, said: “Businesses across our chamber network will welcome today’s decision as a key moment in the journey towards take-off for Heathrow’s third runway. Expanding Heathrow is vital to accelerating economic growth. The scheme will improve connectivity, boost trade and attract international investment. Construction will also bring opportunities to SME supply chains across the UK. A financially and environmentally sustainable expansion of Heathrow is pivotal for the UK’s future growth.”

