The Government has welcomed a multibillion-pound investment programme from Heathrow Airport which will help secure UK steel jobs
The Government has welcomed a new multibillion-pound investment programme from Heathrow Airport, which is expected to secure thousands of UK steel jobs across the country by driving a significant increase in demand for UK-made steel.
In the latest in a series of UK investment wins, Heathrow will invest billions in a new expansion programme for new terminal buildings, aircraft stands, passenger infrastructure and its third runway plans, marking a major vote of confidence in the Government’s plan for growth after the Chancellor confirmed the government’s backing for Heathrow’s expansion last month.
At an event hosted at British Steel’s Scunthorpe plant today (12 February) Heathrow will also sign the UK Steel Charter, which signals the airport’s commitment to use UK-made steel wherever possible as part of its investment programme.
The commitment represents a major win for the steel industry and will help secure thousands of existing steel jobs both at Scunthorpe and across the country. It will bring a huge increase in demand for UK-made steel to supply Heathrow’s expansion project.
By its completion in 2008, the construction of Heathrow Terminal 5 had required 80,000 tonnes of steel, and estimates suggest construction of a third runway could require 400,000 tonnes.
Industry Minister Sarah Jones is expected to give a keynote speech at Heathrow’s launch event today to welcome the announcement as a major step forward in the Government’s growth mission, with new investment crucial to kickstarting the UK’s economic growth and putting more money in people’s pockets, delivering on the Plan for Change.
Industry Minister Sarah Jones is expected to say:
Alex Veitch, Director of Policy at the British Chambers of Commerce said:
Gareth Stace, Director-General, UK Steel said:
Heathrow’s new investment follows the Chancellor announcement of the Government’s full backing of a third runway expansion in her recent Growth Speech where she pledged to go further and faster to kickstart the UK’s economic growth.
The Government has been clear that a third runway could add billions to a better-connected UK economy, deliver cheaper air fares and fewer delays, and drive UK exports and investment to new heights.
According to new research from the consultancy Frontier Economics, a third runway at Heathrow Airport could increase the UK’s potential GDP by almost 0.5% directly by 2050, with over 60% of that increase going to areas outside London and the South East.
Using UK-made steel on construction at Heathrow will also give a significant boost to the UK’s steel industry for the long term, which already supports over 75,000 jobs and contributes almost £2 billion a year to the economy.
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