Heathrow third runway gets government go‑ahead, Chancellor says
Chancellor John Healey announced approval for the £33bn project, despite appraisal showing a negative net present value and a consultation that closed on 1 September 2026
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Chancellor John Healey told MPs that the government has given the go‑ahead to a third runway at Heathrow Airport, the Standard reported. The announcement came during Treasury Questions in the House of Commons, where Healey responded to Liberal Democrat business spokeswoman Sarah Olney’s challenge about the project’s economic case.
Background to the decision
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The government has previously described the expansion as critical to national growth, but climate groups and the mayor of London have opposed it, the Standard noted. Prime Minister Andy Burnham has voiced concerns that the plan diverts investment away from the North, while Mayor Sadiq Khan warned of air‑quality and noise impacts.
Financial appraisal and cost
The Standard cited a Treasury appraisal that estimates the net present value of the expansion between minus £23.4 billion and minus £62.5 billion. The same source said the total cost of the scheme is £33 billion, of which £1.5 billion is earmarked for moving the M25 motorway to make way for the new runway.
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Capacity increase and infrastructure
According to the Standard, the third runway would raise Heathrow’s capacity to 756,000 flights and 150 million passengers each year. Heathrow Airport has said the privately financed project will secure the infrastructure needed for the UK to stay competitive.
Quite simply, after years of delay, years of indecision, years of often vexatious challenge, we have given the go‑ahead to this project quite simply because the economic case stacks up and will help bring growth.
John Healey, Chancellor
Next steps and public response
The Standard reported that the public consultation on the Government’s Heathrow expansion national policy statement closed on 1 September 2026. With the consultation period ended, the government will now move to formalise the policy statement, after which detailed planning applications can be submitted. Residents in affected boroughs, including those in north London, will be invited to comment on specific planning proposals when they are published.
If the policy statement is approved, the privately funded project could proceed to construction within the next few years. Stakeholders such as local councils, environmental groups and community organisations will have opportunities to submit formal objections or support during the upcoming planning stages.
Questions this report answers
+What did the Chancellor say about the Heathrow third runway?
Chancellor John Healey told the House of Commons that the government has given the go‑ahead to the Heathrow third runway, saying the economic case now stacks up and will help bring growth, as reported by the Standard.
+How much will the expansion cost?
The Standard reported that the Heathrow expansion is estimated to cost £33 billion in total, with £1.5 billion allocated to moving the M25 motorway to accommodate the new runway.
+What does the Treasury appraisal say about the project's value?
The Treasury’s appraisal, cited by the Standard, puts the net present value of the Heathrow expansion between minus £23.4 billion and minus £62.5 billion, indicating a negative economic return under current assumptions.
+When did the public consultation on the expansion close?
The public consultation on the Government’s Heathrow expansion national policy statement closed on 1 September 2026, according to the Standard. After that date, the government will move to formalise the policy before detailed planning begins.
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