Major infrastructure projects bogged down by red tape and legal challenges have sadly become all too common in the UK.
So it was positive to see Gatwick’s growth-boosting proposal to bring its backup runway into routine use, by shifting it 12m further north, finally given the green light earlier this month.
The milestone marks the culmination of a near-decade-long process – one which speaks volumes about our byzantine planning system and the overly onerous legal procedures required to move major projects from the drawing board to delivery.
After years of consultation on, close examination of, and revision to, the original second runway plan set out by the airport in 2018, the Transport Secretary, Heidi Alexander, approved it in September of last year.
And yet, despite that decision being taken at the highest level of government, the privately-funded proposal has still been subject to legal challenges in the months since.
The Court of Appeal thankfully brought those legal wranglings to an end at the beginning of August, clearing the way for Gatwick’s northern runway to be repositioned so it can accommodate regular flights.
The decision marks a huge win: the project is set to deliver a £1bn annual boost to the economy; create thousands of new jobs and training opportunities across the airport’s UK-wide supply chain; spur firms that rely on global connectivity; and bolster Britain’s reputation as the best place in the world to visit.
But, as the airport’s chief executive Pierre-Hugues Schmit wrote [in The Times] in the days after the judgement, “while it is right that there is proper scrutiny of projects of this scale, should it really have taken eight years and cost Gatwick about £70M just to get the go-ahead?”
There’s only one reasonable answer to that question.
Streamlining the process for infrastructure delivery will be integral to Britain’s economic success over the years ahead. In his inaugural speech before heading to Downing Street, Andy Burnham established the need to secure “good growth in every postcode” of the UK.
That is a welcome ambition, and unlocking investment in our global transport links can help transform it into reality.
There’s no shortage of infrastructure investors who stand ready to support the government’s quest for good growth. We recently published a report alongside Arcadis which highlights the private sector’s readiness to inject £53.5bn into our international ports, provided the right long-term policy and regulatory frameworks are in place.
From Heathrow’s privately-funded £49bn plans for a third runway and wider modernisation of its existing infrastructure, to increasing passenger capacity at Stansted, to expanding DP World’s London Gateway port, to upgrading St Pancras International and the Temple Mills depot, delivery of ambitious shovel-ready plans can drive good growth all over the UK at zero cost to the taxpayer.
Heathrow’s supply chain alone already creates opportunities for well over 1,000 suppliers nationwide. Its expansion would provide an additional multibillion-pound boost to the UK economy, equivalent to 0.43% of GDP, with most of that benefit felt outside London and the South-East.
Andy Burnham is well versed in how London transport projects can drive growth across Britain; he was a Treasury minister when Crossrail was given the green light, the building of which supported more than 8,000 jobs outside the capital.
These projects can also play a fundamental role in making the new prime minister’s welcome aim of widening pathways into a “good technical education” attainable.
Taken together, they will generate thousands of upskilling opportunities, helping to create a new generation of electrical engineers, construction specialists and project managers across the country.
A lack of investment in our global transport links has held our economy back for too long. Whilst we’ve dithered over the building of a third runway in west London for decades, our competitors have stolen a march: the rapidly expanding Istanbul airport has, in recent weeks, claimed the title of Europe’s busiest from Heathrow.
So, how can the government unlock more of the vast sums of private investment already committed to UK ports?
First off, it needs to finish the job on planning reform. The passing of the Planning and Infrastructure Act at the end of last year marks a big step towards making future sign-off processes for Nationally Significant Infrastructure Projects – such as Gatwick’s second runway plan – considerably less painful. Ministers should build on that progress by reducing examination timelines and the number of duplicative consultations.
Second, the government should ensure the right regulatory frameworks are in place. A whole range of bodies wield influence over whether investment happens in the UK, or is deployed elsewhere, so it’s vital that they are pulling in the same direction as the government on good growth. That means striking the right balance between robust oversight and creating the predictable environment investors need in order to commit.
The flight paths above London and the South-East are, to take one example, outdated and congested.
The government has taken action to modernise the system to enable airport expansion. It should now work with the Civil Aviation Authority and National Air Traffic Services to secure further improvements that can be delivered in parallel with the building of a third runway at Heathrow.
And, finally, the Government must work to bring down the cost of doing business and improve the international competitiveness of the UK’s tax regime. Our global ports already contribute hundreds of millions of pounds to the exchequer each year, and recent changes have added to their pain.
Heathrow saw its tax bill more than double to £129M over the first half of 2026 as changes to the business rates system and employer national insurance contributions took effect.
That doesn’t send an encouraging message to international investors seeking stable environments where they can back major projects for the long term.
They’ll be watching closely to see how the latest consultation on delivery of a third runway moves forward, with progress over the coming months key to ensuring the crucial project is built and operational within the next decade.
The new prime minister has rightly made good growth his north star for policymaking, and he now needs to turn welcome words into tangible action.
Accelerating delivery of investment into our international transport hubs would help the economy secure lift-off.
BusinessLDN programme director for transport Ed Richardson.
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