Media release

25th September 2013 For immediate release

Heathrow Airport: An economic powerhouse driving growth & prosperity in the ‘western wedge’

Economic Impact Study submitted to the Davies Commission

A new study reveals that the closure of Heathrow could, by 2030, lead to the loss of over 100,000 jobs and £8bn in economic output. The London Heathrow Economic Impact Study released by a consortium of five organisations was submitted to the Airports Commission, chaired by Howard Davies, to inform the debate on the UK’s aviation infrastructure needs.

The five organisations, West London Business, the Chamber of Commerce for West London, Buckinghamshire Thames Valley Local Enterprise Partnership, Enterprise M3 Local Enterprise Partnership, Oxfordshire Local Enterprise Partnership, and the Thames Valley Berkshire Local Enterprise Partnership, taken together form an area known as “the Western Wedge” - one of the most productive and strongest economies in the UK and Europe.

The study, carried out by economic consultants Regeneris, explored three main scenarios: constructing a new hub airport to the east of London with the closure of Heathrow; an expanded Heathrow; and a “do-nothing” option. Highlights of the report included the following:

  • Were Heathrow to be closed and replaced by a new hub airport the impacts would be dramatic. By 2030 there would be a loss of 105,000 jobs within the western wedge area and GVA could be £8bn lower.
  • In the long run, the 170,000 to 230,000 jobs whose presence depends on the good air connections at Heathrow would be at risk. Firms would seek to locate to the new hub airport or out of the UK altogether
  • At present the activity at Heathrow Airport supports 120,000 jobs and £6bn in economic output across the western wedge economy; a further 170,000 to 230,000 jobs are dependent on the good air connections offered by Heathrow.

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  • By 2040 an extra 35,000 jobs could be created if Heathrow expands compared to a do-nothing option and the region would see annual GVA boosted by £3 billion as a result of the extra activity at Heathrow.
  • The better air connections could deliver business productivity benefits of £230m to £300m pa from reduced delays and more frequent services, with around 50 additional long and short haul services offered. The expansion of Heathrow would help secure the many jobs in international firms clustered around the airport.
  • By 2030, the closure of Heathrow and travel to and from a new hub airport would add £440m per annum in costs to existing businesses in the western wedge.

Frank Wingate, Chief Executive for West London Business comments: “This important piece of research, covering the greater Heathrow economy, demonstrates just how devastating the closure of Heathrow would be to an area dynamically contributing ten percent of the UK economy. It's impossible to imagine how tens of thousands of jobs and billions of pounds of GVA could ever be replaced in West London and the Thames Valley and to damage this UK powerhouse would be folly.”

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Notes to Editor

Difference between scenarios in the study area arising from the changes in economic footprint of Heathrow
Assessment Year / Expansion compared to Do Nothing / Expansion compared to New Hub / Do Nothing compared
to New Hub
000s FTE jobs / £bns GVA / 000s FTE jobs / £bns GVA / 000s FTE jobs / £bns GVA
2030 / 0 / £0.2 / 105 / £8.3 / 105 / £8.1
2040 / 35 / £3.4 / 120 / £12.5 / 90 / £9.0
Source: Regeneris consulting calculations
Notes: (1) GVA expressed in 2012 prices but adjusted for future real output growth per worker. (2) Job impacts rounded to the nearest 5,000 jobs. (3) Excludes impacts on business location and productivity

...Notes to Editor continued overleaf

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About West London Business

West London Business works to ensure West London stays the best place to do business. West London is the UK’s second largest economic powerhouse with £50 billion GVA and 70,000+ businesses. We are a business-led organisation with a blue-chip board that includes corporations such as GSK, SEGRO and PwC, as well as key regional firms such as Fullers and Brompton Bicycles. We have a membership of many hundreds, 9000+ supporters and 30+ events per annum, including the West London Business Awards.

Our commitment is to raise West London’s global economic competitiveness, whilst pursuing social and environmental sustainability. We work towards these goals by providing insight, voice and connections to our members and the wider business community. Through this programme we inform and influence the work of local, regional and national government policymakers and promote inward investment.

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PR Contact:

Simon Wade, MCIPR, PR Consultant for West London Business

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