UK prime minister Sir Keir Starmer has announced plans to invest £1.1 billion in London Stansted Airport over the next five years.
According to the Department for Transport (DfT), the funding will ‘expand the existing terminal by a third, securing new air routes to key business and holiday destinations – boosting local supply chains and further cementing the UK’s place on the international stage’.
The total value of the investment is comprised of ‘£600 million for the terminal extension, alongside another £500 million to improve the existing terminal and wider airport estate’.
Louise Haigh MP, secretary of state for transport, commented: “We have been steadfast in our commitment to help British businesses grow and in turn boost the UK’s economy. This announcement is a clear signal that Britain is open for business.
“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 project is also set to deliver Stansted’s 14.3 megawatt on-site solar farm, which the DfT says ‘will support the airport’s current and increasing electricity demands’. This follows the development of a a new electric vehicle charging forecourt at the airport.
Manchester Airports Group (MAG) – which owns London Stansted, Manchester and East Midlands Airports – is reportedly in the final stages of the procurement process, with construction expected to begin in 2025. The project is expected to take between two and three years to complete.
MAG CEO Ken O’Toole, said: “By investing more than £1bn in Stansted over the next five 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.
“Aviation is an essential enabler of the success of the UK’s key high-value industries, and we look forward to helping the government achieve the highest sustained growth in the G7 through the sustainable growth of our airports.”
The DfT has confirmed that ‘the expansion plans already have planning permissions to begin construction and are in line with previously agreed passenger and flight numbers’.
Some in the logistics sector have criticised these proposed plans. In response to the announcement of this investment, Alexandra Herdman, senior policy manager at business group Logistics UK, commented: “The lack of commitment to expanding freight services at Stanstead Airport as part of the government’s £1.1bn investment in the Stansted Airport expansion is disappointing and a missed opportunity for the logistics sector and the economy as a whole.
“Air freight plays a key role in the nation’s just-in-time supply chain, delivering high-value, time-critical goods that industry and consumers rely on and which drive much-needed economic activity. Our members are urging government to rethink how this money is distributed to ensure that air freight can continue to expand and grow across the UK, for the benefit of all.”
