NEW figures released today quantify for the first time how an expanded Heathrow will benefit the North East, with the region set to receive £4 billion in economic growth and 5,100 new jobs.
The benefits are a portion of the forecasted economic growth resulting from trade and foreign investment, as lower fares and improved connections at an expanded Heathrow bring more business to the UK.
With the Airport Commission’s consultation coming to a close next week, the data sheds new light on the aviation debate and confirms that Heathrow expansion is the best option for the whole of the UK.
Using the same analysis, the growth expected as a result of Gatwick’s expansion is significantly less than that forecast for a new runway at Heathrow in all areas across the UK. The North East is forecast to receive an increase of £4 billion GDP and 5,100 new jobs through the expansion of Heathrow, compared to just £2.8 billion and 1,600 jobs for Gatwick’s proposals.
The independent report by consultancy QUOD, confirms the Heathrow expansion will bring more jobs and more economic growth than Gatwick to every part of the UK.
The research, commissioned by Heathrow, shows that regional employment benefits could total 179,800 new jobs across the UK as a result of foreign investment and trade.
Trade is likely to play a big part in the growth, with towns and cities across the rest of the country, currently benefitting from nine times more employment from foreign investment in manufacturing than London and the South East.
The report adds new detail to the findings of the Airport 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 Airport 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.
North East Chamber of Commerce Policy and Research Manager, Mark Stephenson, said: “The Heathrow expansion is set to deliver fantastic results for the North East with business forecast to flourish bringing more jobs and economic prosperity to the local area.
“More employment for local people means a more vibrant economy and will ensure the North East continues to grow as an attractive place to live and work.”
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.”