In what it called a major boost for the British economy, the UK government on Tuesday announced its support for a new runway at Heathrow International Airport, effectively ending years of debate over how to solve capacity shortages at one the world’s most important hubs for international air transport. The next phase of the plan will take the form of a draft “National Policy Statement” (NPS) for consultation, said the government in a statement.
“The government’s decision on its preferred location, which will be consulted on in the new year, underlines its commitment to keeping the UK open for business now and in the future and as a hub for tourism and trade,” it said. “Today’s decision is a central part of the government’s plan to build a global Britain and an economy that works for everyone. This is just one of a series of major infrastructure investments that will create jobs and opportunities for every part of the UK.”

The UK estimates that a new runway at Heathrow will generate up to £61 billion in monetary benefit to passengers and the wider economy. Ministers say they expect the creation of up to 77,000 new jobs over the next 14 years. Meanwhile, the airport has committed to creating 5,000 new apprenticeships over the same period.

“A new runway at Heathrow will improve connectivity in the UK itself and crucially boost our connections with the rest of the world, supporting exports, trade and job opportunities,” said Transport Secretary Chris Grayling. “This isn’t just a great deal for business; it’s a great deal for passengers who will also benefit from access to more airlines, destinations and flights.”

In a gesture to opponents of the third runway, Grayling added that the government would open the plan to “full and fair public consultation” and that it would allow it to proceed only  “on the basis of a world class package of compensation and mitigation worth up to £2.6 billion” designed to ensure community support, insulation and respite from noise.

As part of the agreement with Heathrow Airport, the government said it will propose the introduction of a six-and-a-half-hour ban on scheduled night flights and make more stringent night noise restrictions a requirement of expansion. It said it also proposes new legally binding noise targets, which it insists will encourage the use of quieter airplanes and a more reliable and predictable timetable of respite for those living under the final flight path. The airport has also pledged to provide more than £700 million for noise insulation for residential properties.

Meanwhile, the Airports Commission, chaired by Sir Howard Davies, said it expects the new runway to not only add capacity but also to increase competition and lower airfares despite its private funding. “It will be for the Civil Aviation Authority [CAA], as the independent industry regulator, to work with Heathrow Airport and airlines operating at the airport, on the detailed design and costs to ensure the scheme remains affordable,” said the government statement. “The government expects the industry to work together to drive down costs to benefit passengers. The aim should be to deliver a plan for expansion that keeps landing charges close to current levels.”