Expanding Luton airport will not deliver economic benefits government wants

The decision to approve Luton’s airport expansion plans will not deliver the economic growth the government has said it wants, the New Economic Foundation (NEF) has warned.

Responding to the government’s decision to approve Luton airport’s expansion plans today [Thursday 3 April], Dr Alex Chapman, senior economist at NEF, said:

“Growing Luton will not deliver the economic growth the government so desperately wants. Business air travel has collapsed over the last few years and even the airlines admit it isn’t coming back.

“Instead, expansion at Luton will see another 8m UK residents taking their money overseas on holiday instead of spending it on UK high streets. Meanwhile, any jobs created locally will not make up for the losses in the UK’s wider regions.

“Our latest analysis shows that household spending on domestic holidays has declined by £3bn in the past two years. This hurts held-back coastal economies the most and expanding airports like Luton will only accelerate the decline.

“The UK already has enough capacity for 300 million passengers to fly in and out every year. Cheap flights are already widely available. If this government is so desperate for growth, it should focus on investing properly in the vital public services upon which the health of our economy really depends.”

ENDS

Contact

James Rush – james.rush@neweconomics.org

Notes

Our latest analysis shows that spending on domestic holidays in Britain fell by 21% (£3bn) between 2022 and 2024.

The New Economics Foundation is a charitable think tank. We are independent of political parties and committed to being transparent about how we are funded.