Airport expansion does not boost UK growth or productivity – report

Claims that airport expansion will help grow the UK economy should be treated with scepticism, according to a report that finds air travel does not increase productivity or growth. Declining business travel and lower wages in aviation undermine claims made by the industry for the value of increased air connections, say researchers at the New Economics Foundation. A report by the NEF due to be published this week says that despite booming air travel in the past few decades, only one in 12 flights in 2022 was taken for business purposes – half the proportion in 2013 – while the number of associated jobs was lower than in 2007. Wages fell faster in real terms between 2008 and 2022 than in any other UK sector. Far more passengers are flying on holiday abroad than into the UK, with the NEF report finding a £32bn “travel deficit” in net spending between outbound and inbound tourism in 2019. Airports around the UK are seeking to expand, despite the recommendation of the Climate Change Committee that there should be no additional capacity to meet the country’s 2050 net zero targets. Britain’s biggest airport, Heathrow, has permission to build a third runway, although it says the plans are under review. Last week, Gatwick submitted an application to develop a second runway for full-time use. London City, Luton and Bristol are among other airports planning to expand, while terminal redevelopment at Manchester and Birmingham will also bring more passengers. Gatwick says its growth plans would “inject £1bn into the region’s economy every year”, while Bristol claims that extra flights will create up to 5,000 jobs in the region and provide a £430m economic boost. According to government-endorsed figures in the Airports Commission’s report, Heathrow’s runway would add £61bn in growth over six decades.<br/>