THE OWNER and operator of London Luton Airport have welcomed Chancellor of the Exchequer Rachel Reeves’ support for the aviation sector’s role in delivering economic growth and prosperity for the UK.
London Luton’s long-term expansion would deliver 10,900 new jobs at the airport and in the supply chain, £1.5 billion annual economic growth and up to an additional £13 million per year for vital community causes by the mid-2040s. Airport operator Luton Rising has called for an urgent decision on its “nationally significant sustainable growth proposals”.
The proposals have been supported by more than 10,000 people who signed a community-led petition and more than 130 businesses.
In her speech on economic growth on Wednesday (January 29), the Chancellor confirmed government support for a third runway at London Heathrow and said that a decision on London Luton’s expansion plans – which has been put back three times – could be expected soon.
Paul Kehoe, the independent chair of Luton Rising, said: “We welcome comments made by the Chancellor in her important speech on Wednesday, recognising the role of airports in delivering growth of the national economy. Our proposals can be supported by any government making economic growth its priority.
“Here at London Luton Airport we have a ready-to-go scheme that is primed to deliver an economic air bridge for the Oxford-Cambridge growth corridor and contribute to the success of the country.”
Now the Secretary of State for Transport, Heidi Alexander, must make a decision as soon as possible on the airport’s expansion, added London Luton’s chief executive Alberto Martin.
“Today, every £1 spent by passengers at the airport, allows the local authority to invest 53p directly into local community causes – 20 times more than any other UK airport,” he said.
“Luton is now at a tipping point with a generational opportunity to boost investment in public services further, which the airport’s growth will deliver.”
The proposals involve creating a second terminal and associated infrastructure to support growth to a new capacity of 32 million passengers per year by making the best use of its existing runway.
Luton Rising’s proposals for the long-term sustainable growth of London Luton Airport were first brought forward in late 2017, with three public consultations held in 2018, 2019 and 2022. A six-month examination undertaken on behalf of the government concluded in February last year.
The Transport Secretary is due to announce a decision by April 3.
Bedfordshire business leaders are backing the expansion plans at the airport. Justin Richardson, chief executive of Bedfordshire Chamber of Commerce which represents 750 members across the county, said: “London Luton Airport is a linchpin of the regional economy.
“When it thrives and grows so too does the regional economy so we believe it is vitally important that the airport continues with its long-term sustainable growth plans to provide certainty for the businesses and communities it serves.”
Marie-Claude Hemming, director of operations at the Civil Engineering Contractors Association, said: “We firmly believe that airport expansion is a vital piece in the puzzle when it comes to the government’s mission to deliver a high-growth economy. That is why we support these proposals and airport expansion where appropriate.
“For too long this is an issue that has been kicked into the long grass by successive governments.”
Expansion would not come at the expense of the environment, says Luton Rising. It has included a Green Controlled Growth framework intended to constrain growth within defined limits for greenhouse gas emissions relating to the airport’s operation, noise, air quality and surface access governing how people get to and from the airport.
Increasing the capacity and a new terminal would also bring an estimated extra £13 million a year into Luton within two decades. The airport currently creates funding that goes into social impact projects in the town.
Karen Perkins, chief executive of Bedfordshire and Luton Community Foundation, which administers Luton Rising’s industry-leading community funding and has distributed more than £13 million of it since 2019, said: “Not only does the exciting future for the growth of the airport bring the option of prosperity to the town but its potential to be even more transformative for the lives of the people of Luton and surrounding communities cannot be underestimated.”
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