Global Connectivity

As an island trading nation, global connectivity is critical to the UK’s economic success – underpinning trade, tourism, and international business

London is the UK’s gateway to the world, but its competitiveness is increasingly being challenged by major infrastructure investment in other global cities. That is why BusinessLDN has partnered with Arcadis to hold the Government to account for the timely delivery of projects that will strengthen London’s international links.

Published in February 2026, our joint report, Pathway to Delivery: Expanding London’s Global Connections, sets out the milestones needed to unlock at least £53.5bn of private investment across aviation, international rail, and ports, including Heathrow, Gatwick, London Stansted, St. Pancras International, and London Gateway Port and Logistics Park.

The report calls on the Government to tackle regulatory, fiscal, and planning barriers; align regulators with the growth mission; streamline planning processes; and reform business rates to accelerate investment, create jobs, and ensure the UK remains internationally competitive.

To get involved or find out more, send us a message!

HEATHROW AIRPORT

Demand for aviation continues to grow, with Heathrow welcoming a record 84 million passengers last year. However, the airport is operating at full capacity. This constraint is driving higher fares, limiting trade, and diverting new long‑haul routes – and the jobs they support – to rival European hub airports.

Heathrow’s plans for expansion address this, with £33 billion of private investment proposed to deliver a third runway and new terminal capacity, and an additional £15 billion earmarked to upgrade existing infrastructure. The Government and Heathrow are working towards securing planning approval by 2029, with a third runway operational in the mid‑2030s.

Why it matters

Heathrow expansion is one of the largest privately financed infrastructure projects in Europe and a central component of the Pathway to Delivery programme. ‘The £33bn investment for expansion and a further £15bn planned for upgrading existing infrastructure represent a generational opportunity to strengthen the UK’s global connectivity, support trade, and sustain long‑term economic competitiveness.

As the UK’s only hub airport, Heathrow already connects the country to more than 230 destinations worldwide, is the UK’s largest port by value, and is the single largest site of employment – all of which would be boosted by expansion. Conversely, without additional capacity, the UK risks losing connectivity and investment to better‑resourced international competitors.

Investment at stake

Heathrow is proposing a fully privately funded plan that includes:

£33bn investment for expansion, delivering the third runway and new terminal capacity

£15bn investment to upgrade existing infrastructure, like extending Terminal 2 and demolishing Terminal 3

The economic benefit of the project, during construction and beyond, is expected to equate to around 0.43% of UK GDP.

Key enablers

Progress depends on securing a stable and credible policy framework and maintaining political support throughout the planning process.

Planning reform to meet the Government’s Heathrow expansion timetable and avoid delay.

Airspace modernisation to enable an operational third runway in a decade.

Growth‑aligned regulation to provide certainty, unlock investment, and support delivery at pace.

Key milestones

2026

Review of the regulatory framework to support expansion developed during 2025/26.

The CAA published its shortlist for Heathrow’s future regulatory model

The draft Heathrow National Policy Statement (HENPS), previously known as the Airports National Policy Statement (ANPS), was published by the Government in mid-June, launching a consultation process that will run until the start of September.

Further Heathrow consultation on expansion, building on 2018 and 2019 consultations.

Parliament will vote on the final HENPS, following the consultation period, with the vote expected in late November or early December.

2028

Completion of airspace modernisation required to support the Development Consent Order (DCO).

2029

DCO approved and implemented.

Construction begins, with delivery of an operational runway within a decade of project mobilisation.

LONDON STANSTED

Demand for air travel continues to grow, with London Stansted handling around 30 million passengers per year and seeing sustained growth across leisure and business travel. As a key part of London’s airport system, London Stansted plays a particularly important role in short‑haul European connectivity and low‑cost travel, while also seeking to increase its long-haul route network.

To support future demand and maintain service quality, the airport is delivering a £1.1 billion programme of private investment, centred on a major expansion of the existing terminal and associated infrastructure. This will unlock passenger capacity and make the best use of Stansted’s existing single runway.

London Stansted is on an exciting journey of transformation, with permission to expand and immediately available capacity to grow.

Why it matters

London Stansted’s expansion is a core part of the Pathway to Delivery programme to strengthen London’s global connections. The £1.1 billion investment will enable sustainable growth by expanding terminal capacity rather than increasing flight numbers beyond the number the airport has permission for.

London Stansted connects London and the wider UK to over 200 destinations, offers the largest number of direct European routes of any UK airport and is the capital’s premier cargo gateway. Its growth will support trade, tourism and regional economic development across London, Essex and the wider East of England.

Expansion of London Stansted’s unique Further Education aviation college is also crucial to tackle the acute aviation skills shortage, which is a constraint to growth across the sector.

Investment at stake

The growth programme at London Stansted currently involves £1.1 billion of private investment to unlock passenger capacity, including:

Expansion of the existing terminal building, increasing floorspace by 40%

Improvements to passenger facilities and airport operations

Associated infrastructure upgrades to support higher passenger volumes

In December 2025, planning permission was also granted to increase the airport’s permitted passenger cap from 43 million to 51 million passengers per year by 2040, to enable longer-term growth.

Crucially, this growth will be achieved without increasing the number of permitted flights, making best use of existing runway capacity through larger aircraft and more efficient operations.

Key enablers

Delivering London Stansted’s full growth potential depends on a supportive policy, regulatory and infrastructure environment.

Airspace modernisation to unlock runway capacity, reduce noise and carbon and optimise the London airport system

Integration with the Government’s strategy to position aviation as a partner in growth, tourism, industrial priorities and net-zero delivery

Competitive fiscal regime that avoids deterring investment in UK airports and infrastructure

Delivery of regional economic growth by recognising airports as anchors of productivity, investment and strategic corridors

Improved surface access, including upgrades to the West Anglia Main Line and North London rail network to cut journey times, boost sustainable travel and support future schemes such as Crossrail 2

Successful expansion of Stansted Airport College to meet future workforce needs at the airport and in the aviation sector

Key milestones

2026

Planning permission granted by Uttlesford District Council (December 2025) to increase passenger capacity from 43m to 51m by 2040

Construction underway on the London Stansted terminal transformation and wider capacity improvements

2028–29

Exploration of surface access upgrades, including reduced journey times on the Stansted Express

London Stansted terminal transformation project completed and fully operational (planned)

2030

Airport seeking funding and support to expand the Stansted Airport College

National airspace modernisation study commences to support future capacity and improve environmental sustainability

2030 onwards

Sustainable growth towards 51 million passengers per year

Global Connectivity

Read more about London’s global hubs and expansion plans below.

HEATHROW AIRPORT

LONDON STANSTED

Join our Mailing List