OREANDA-NEWS. New figures released today quantify for the first time how an expanded Heathrow will benefit every UK nation and region. The findings prove that Heathrow is the best option for both jobs and economic growth in all parts of the country.

With the Airports Commission’s consultation coming to a close next week, the data sheds new light on the aviation debate.

The independent report by QUOD, commissioned by Heathrow, confirms over half the gains from forecasted economic benefits and job creation will be made outside of London and the South East, a fact that is further endorsed by the public support Heathrow has already received from 26 Chambers of Commerce across the UK.

Regional employment benefits as a result of foreign investment and trade could total 179,800 new jobs across the UK in 2050, as long haul connections and increased freight capacity at an expanded Heathrow bring more business to the UK.

Trade is likely to play a big part in economic growth, with towns and cities across the rest of the country currently benefitting from nine times more employment from foreign investment in manufacturing than those in London and the South East. Scotland, Wales and Northern Ireland are expected to lead the way in research and development and the digital technology field, experiencing the greatest benefits from increased employment in these sectors.

Table 1: Comparison of employment impacts by region in 2050 (jobs)

Expanded
Gatwick

Expanded
Heathrow

London

9,300

38,400

South East

8,000

33,200

London & SE

17,200

71,600

North West

4,800

15,300

East

4,100

12,900

South West

3,900

12,300

West Midlands

3,800

12,000

Yorkshire & Humber

3,500

11,200

East Midlands

3,100

9,800

North East

1,600

5,100

Rest of England

24,800

78,600

Scotland

4,100

16,100

Wales

2,200

8,400

Northern Ireland

1,300

5,000

Rest of UK

7,600

29,500

TOTAL

49,600

179,800

Using the same analysis, the growth expected as a result of Heathrow’s expansion is significantly less than that forecast for a new runway at Gatwick in all areas across the UK. The West Midlands, for example, is forecast to receive an increase of ?9.7 billion GDP for Heathrow, compared to ?6.7 billion for Gatwick.

Table2: Comparison of present value of real GDP impacts by Region (?bn 2014 prices)

Expanded
Gatwick

Expanded
Heathrow

London

18.5

35.1

South East

12.4

23.6

London & SE

30.9

58.6

North West

8.6

12.5

East

7.9

11.5

South West

6.9

10.0

West Midlands

6.7

9.7

Yorkshire & Humber

6.2

9.0

East Midlands

5.4

7.8

North East

2.8

4.0

Rest of England

44.5

64.4

Scotland

7.9

14.0

Wales

3.5

6.2

Northern Ireland

2.2

3.9

Rest of UK

13.6

24.1

TOTAL

89.0

147.2

The report adds new detail to the findings of the Airports Commission in its interim report last year, which also confirmed an expanded Heathrow would deliver the best economic outcomes for regions.

It is based on the Airports Commission’s baseline scenario for future growth and remains a conservative estimate of the potential economic and employment benefits that could be delivered by a new runway at Heathrow.

Further scenarios developed by the Commission estimate the total economic benefit of Heathrow expansion at ?211 billion across the UK, almost ?65 billion more than the baseline adopted for this report, demonstrating that significant additional value could potentially be secured.

John Holland-Kaye, CEO, Heathrow, said:

“The verdict is in – expansion of Heathrow will be best for every region and nation of the UK – more jobs and more economic growth. That is why 28 chambers of commerce from up and down the country are backing Heathrow, together with unions, businesses and local people. Only Heathrow can help to grow and rebalance our economy by connecting all of Britain to global growth. An expanded Heathrow can be the most modern, efficient, sustainable and best connected airport in the world – attracting more business, more investment and delivering more jobs and growth that the whole country can benefit from.”