BUSINESS COMMENTARY
Heathrow trouble is so predictable
Alistair Osborne
Friday February 28 2020, 12.01am, The Times
Grounded by hot air. And how fitting is that? We’ve had that by the plane-load from the backers of
Heathrow’s “£14 billion” third runway: the airport’s bonus-driven boss John Holland-Kaye; Britain’s business lobby groups without an original idea between them; and, of course, Sir Howard Davies’s Airports Commission, the lot that blew £20 million of taxpayer cash on a last-century fixation with hub airports.
All that guff for something as predictable as this: Chris Grayling failing to account for the runway’s impact on Britain’s legal pledges over global warming. Who’d have thought our ex-transport secretary might deliberately forget all about the Paris Agreement in 2015? Or that he might then devise a National Policy Statement, approved by MPs, that “was not produced as the law requires”: the damning verdict from the Court of Appeal.
Still, let’s not pin all the blame on him. Britain’s been failing to build a third Heathrow landing strip since 1968, when Harold Wilson set us off on this flight path to nowhere. And for good reason: the project doesn’t stack up. The airport’s in the wrong place for extensive expansion: densely populated and encircled by one of the world’s busiest road systems. The upshot? It’s always too complicated to build. The latest bonkers incarnation involves diverting all 12 lanes of the M25. Try to imagine the chaos.
Who pays for all the disruption? Well, Heathrow’s never been clear on whether its investors would foot the bill. Or how much passengers would pay for a scheme that’ll make one of the world’s priciest airports even pricier. It’s already got an air quality problem, too. Sites around the airport breach EU nitrogen dioxide limits. So how exactly would an extra 250,000 flights and 50 million passengers a year help?
But Britain’s legal vow to reach net zero greenhouse gas emissions by 2050 adds a new complexity, as the Committee of Climate Change noted. Expand Heathrow and you “leave at most very limited room for growth at non-London airports”.
In short, it kills “levelling up”. An expanded Heathrow would embed a fresh monopoly, undoing the logic of breaking up BAA and sucking traffic out of regional airports: £43 billion of GDP-worth in the view of the New Economics Foundation.
So what to do? Well, having been saved by the judiciary he beats up, Boris Johnson has a way to dodge the Heathrow bulldozers for good. He could deliver enough extra capacity to 2040 just by working existing runways harder. And all for a fraction of the financial or environmental cost. A new national policy statement could let Gatwick use its relief runway for take-offs: a scheme it prices in the “hundreds of millions”. Stansted could be allowed to lift its annual passenger cap from 35 million to 43 million; Luton permitted its second terminal; and Heathrow allowed to lift its flight cap from 480,000 to 505,000 a year.
That’d spread the environmental burden, making capacity growth easier to offset locally towards net zero targets. True, it’d leave Mr Holland-Kaye with the tricky task of explaining to his investors why he’s already blown £450 million on a third runway always doomed to fail. But that’s his problem, not ours.