Doubling of imports through London Gatwick will benefit South East

London Gatwick could provide a significant boost for growth and resilience of freight across the South East, and support unlocking long-term growth, if the airport’s Northern Runway plans are approved later this month. 

These were among the key topics discussed by the airport’s CEO Stewart Wingate at a roundtable of UK Aviation Freight Leaders last week, attended by key figures from the UK’s major aviation freight stakeholders, including airlines, airports and trade bodies. 

The airport is in the final stages of waiting for government approval to bring its existing standby Northern Runway into regular use. If approved, the plans could bring an additional 60,000 flights per year and see an increase to 161,500 tonnes of cargo by 2038 – more than double 2019* levels. The majority of imported cargo through London Gatwick currently arrives in the belly of aircraft from long-haul destinations in Asia and the Middle East – key trade markets which would be further supported by increasing flights to and from the airport.  

A report by Oxford Economics highlights the Gross Value Added (GVA) contribution to the UK’s economy generated from imported cargo could increase to £9.8bn in 2038, more than twice the value in 2019, and £2.1bn higher than without the Northern Runway.   

An increase in the volume of imports will also see a rise in trade-facilitated employment across the UK. With the Northern Runway project, employment would increase to 167,500 jobs in 2038, 35,500 more than without the development.  

Karim Fatehi OBE, CEO, London Chamber of Commerce and Industry said: “There is a £2bn a year economic boost within our grasp if we bring London Gatwick’s Northern Runway into regular use. We could double international trade passing through the airport, encouraging home grown and international investment and creating 35,000 new jobs. 

“Trade through airports is essential for London and the wider UK’s business community. Our Green Skies report shows that four in five London business leaders agree that air connectivity is vital to London’s global competitiveness, international trade, and economic growth. Opening up the runway would create opportunities for businesses to expand their operations overseas, and to access growing markets in the USA, Asia and the Middle East. 

“We call on the Government to seize this opportunity to boost economic growth and productivity for the entire UK.” 

Stewart Wingate, CEO, London Gatwick said: “London Gatwick already makes a significant contribution to the local, regional and national economies, through direct and indirect jobs, tourism and global trade opportunities.  

“It’s promising that government is actively facilitating discussions on the importance and growth of UK aviation freight, and in particular the resilience across the South East, and unlocking long-term growth for the sector to improve UK competitiveness.    

“Many businesses and individuals across the South East are supported by having London Gatwick on their doorstep. We are confident that by bringing our existing Northern Runway into regular use, we’ll continue to grow our global connections and drive growth for the region’s people and businesses." 

NOTES  

*We are reporting comparative to 2019 levels as this was London Gatwick’s busiest year in terms of passenger numbers and aircraft movements. 

London Gatwick commissioned two independent studies to assess the economic benefits of the Northern Runway proposals, including the volume and value of increased cargo capacity. 

The Local Impact Assessment prepared by Oxera shows that by bringing the Northern Runway into routine use, London Gatwick will enhance the crucial economic role it plays by injecting £1bn into the regional economy every year, supporting 14,000 new jobs. 

Separate analysis by Oxford Economics explores and forecasts the wider economic benefits created by tourism, connectivity and trade. Both sets of analysis are outlined in the Development Consent Order documentation that can be found on the Planning Inspectorate website.  

With the Northern Runway scenario, the volume of imports would more than double between 2019 and 2047, to 174,200 tonnes. These imports would facilitate £10.59bn of GVA and 160,400 jobs in 2047 once multiplier effects are included, around 20% higher than the equivalent activity facilitated in the Base Case. (Oxford Economics – numbers baseline plus NRP). 

London Gatwick is investing in its long-term future. The airport’s planning application to bring its existing Northern Runway into routine use has been independently reviewed by the Planning Inspectorate (PINS), which has submitted its recommendation to the Secretary of State. A decision is expected by the end of February. London Gatwick’s low-impact plan will improve resilience, reduce delays, and provide a significant boost to the national and regional economy by supporting trade, tourism, and new jobs.