London Luton Airport: Why airport growth is vital for economic growth
Economic growth is at the top of the new Government’s agenda. One of its key pathways to achieving this is through reforms to get Britain building again.
Airport expansion can be a key pillar of this. The aviation sector is a pivotal part of the UK economy, and airports themselves represent the physical hub of this activity. Prior to Covid in 2019, London Luton Airport contributed £1.8 billion to the UK GDP, with Luton Rising’s, proposed expansion up to 32 million passengers per annum, this contribution is predicted to increase to £3.3 bn in 2043.
Airports and aviation connectivity are central to growth in the UK economy – in the National Planning Policy Framework (NPPF), airports are recognised as the centrepiece needed for jobs creation in the aviation sector, as well as a catalyst of economic activity in the wider economy. Airport growth can therefore help kickstart economic growth and facilitate economic stability through driving fair, high-quality, and well-paid jobs.
Aviation and airports therefore ought to be central to the government’s plans for an industrial strategy, and to help establish Britain as a leading destination for starting and scaling businesses.
London Luton Airport already supports 28,000+ jobs, with nearly 11,000 of those provided through direct employment. In 2019, every £1 the airport contributed to the economy created a further £1.30 elsewhere in the UK. Growing the airport would increase this contribution across the UK and help to grow the economy and promote economic stability.
Expanding of London Luton Airport would provide an extra 4,400 jobs in Luton alone, with potential for a further 6,100 jobs across the UK by 2043. Some of the wider effects of employment opportunities attributed to London Luton Airport relate to its unique position as the only airport situated in the Cambridge – Milton Keynes – Oxford Growth Corridor (The Growth Corridor) The Growth Corridor seeks to build upon the world-class economic and academic assets within the region, and a growing London Luton Airport will be central to achieving shared aspirations through its ability to facilitate trade, investment, and tourism.
According to Oxford Economics, the intrinsic link between jobs creation and what that contributes towards UK GDP would result in the London Luton Airport expansion adding £3.3 billion in 2043, an increase of 83% from 2019 pre-pandemic levels. In the Luton unitary authority area itself, the GDP contribution of the airport is expected to reach £1.5 billion GDP by 2043 (a 93% increase from 2019).
The relationship between airport growth and increased GDP is undeniable; it is through jobs creation and improved connectivity that this is delivered.
The airport will also contribute to the wider aim of powering up Britain, particularly Luton, which in addition to having opportunity continues to show significant pockets of deprivation. The Growth Corridor has an opportunity to deliver in high-value sectors and in the development of the international economy. The connectivity of the region is a key strength, and further development of the airport will be important to achieving these objectives.
The East of England, where Luton is located, currently houses a significant number of foreign direct investment (FDI) stock. In 2018 there were around 9,300 foreign-owned companies in the region. Luton provides a substantial number of transport links to Europe which provides an important opportunity given that Europe is currently the largest investor of FDI to the UK. An expanded airport is expected to provide connectivity to a range of long-haul destinations, notably Middle East hubs and the eastern seaboard of the USA, providing better connections and opportunity for future foreign direct investment.
Luton Airport’s geographical relationship with the Growth Corridor and being at the heart of the Golden Triangle (Cambridge, London, and Oxford) contributes towards the provision of economic clusters which are central to driving innovation, providing well-paid and high-skilled jobs of the future.
It is vital to balance airport growth with the UK’s Net Zero mission and environmental objectives and Luton’s community's needs, which is why Luton Rising developed a unique proposal for Green Controlled Growth (GCG).
The GCG framework, a first-of-its-kind for sustainable expansion, would ensure that the airport and its ground operations adhere to legally-binding environmental limits as the airport grows. These limits would be independently monitored and apply to air quality, carbon emissions from airport ground operations, the noise from aircraft, and the proportion of sustainable transport used by passengers and those working at the airport. If any thresholds were to be breached, expansion would be halted until the action plan has brough the impacts back within the limits.
Airports are the centrepiece for job creation in the aviation sector and have a positive impact on employment opportunities across ancillary sectors. Airport expansion will drive economic growth and provide fair, high-quality, and well-paid jobs – what’s important is to ensure expansion is done in the least environmentally impactful way possible, and that’s exactly what we’re planning to do at London Luton Airport.
Expanding London Luton Airport provides vast opportunities for economic growth without building another runway. Pursuing economic growth via airport expansion and helping the UK to achieve Net Zero do not need to be opposing missions. Instead, they can complement and reinforce one another.
PoliticsHome Newsletters
Get the inside track on what MPs and Peers are talking about. Sign up to The House's morning email for the latest insight and reaction from Parliamentarians, policy-makers and organisations.
