THE WORLD IS WAITING IT S TIME FOR HEATHROW EXPANSION

Transcription

1 THE WORLD IS WAITING IT S TIME FOR HEATHROW EXPANSION

2 But the world won t wait forever. It s time for Heathrow. Building for the future

3 Business communities across the UK are clear it s time to get on with the job of expanding Heathrow, and we are counting on our politicians to give this vital project the green light. Dr Adam Marshall Director General British Chambers of Commerce

4 THE TIMELINE TO EXPANSION Paris opens the new four-runway Charles de Gaulle airport Government sets up Roskill Commission to look at the need for a third London airport Government s Aviation White Paper identifies Heathrow capacity as restricted ; a year later the new Government amends that to say Heathrow capacity is virtually exhausted Frankfurt opens a third runway The Government commissions another study on airport capacity in the south-east. The study backs the expansion of Heathrow The Future of Air Transport white paper supports a third runway at Heathrow as well as a second runway at Stansted. In the meantime, Amsterdam s Schiphol opens its fifth runway The Government backs a third runway at Heathrow The Government reverses its decision London Airport (later named Heathrow) officially opens for commercial operations Heathrow opens Terminal 4 Heathrow opens Terminal Roskill Commission runway CDG opens Heathrow T4 opens Heathrow T5 opens PAGE 2 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

5 Airports Commission unanimously recommends the north west runway at Heathrow, as the best way to boost Britain s economy and secure the UK s future as a global aviation competitor Feb-May 2017: Government public consultation on draft Airports National Policy Statement Frankfurt opens its fourth runway Independent Airports Commission set up by Government Airports Commission publishes interim report with three options May 2016: Amsterdam Schiphol Airport sends Heathrow a consolatory cake as expansion decision is delayed October 2016: The Government announces it will bring forward a policy in support of a third runway at Heathrow. Heathrow sends a cake back to Schiphol Jan-Mar 2018: Heathrow s first planning consultation on emerging expansion proposals and airspace design principles Heathrow submits Long-term Hub Capacity Response to Airports Commission Heathrow submits Consultation Response to Airports Commission In June, Amsterdam Schipol Airport overtakes Heathrow as Europe s top airport for direct connectivity Heathrow slips to seventh place in top ten European airports for direct flights, overtaken by Frankfurt, Amsterdam, Rome, Munich and Paris Heathrow submits Taking Britain Further Technical Submission to Airports Commission Dubai International Airport overtakes Heathrow as world s busiest airport Frankfurt s 4th runway Airports Commission Schiphol cake THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 3

6 For British businesses, the benefits of expansion have always been clear: connections to new markets and trading opportunities, with better links with regional airports across the UK, a boost to British exports and a skills legacy for future generations. Confederation of British Industry, British Chambers of Commerce, Institute of Directors, Federation of Small Businesses, EEF, London Chamber of Commerce and Industry and London First PAGE 4 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

7 CONTENTS Foreword by John Holland-Kaye (CEO, Heathrow) 07 Our National Conversation 08 Building an outward-looking trading nation 10 What is a hub airport? 14 Building a more connected Britain 16 Building a more secure economy for everyone 18 Building a more sustainable future 20 What expansion means for UK businesses 24 Expansion: Supported across the UK 26 Our National Conversation 27 The world is waiting for Scotland 33 The world is waiting for Wales 39 The world is waiting for Northern Ireland 45 The world is waiting for the East Midlands 51 The world is waiting for the East of England 57 The world is waiting for the West Midlands 63 The world is waiting for the North West 69 The world is waiting for the North East 75 The world is waiting for Yorkshire and the Humber 81 The world is waiting for the South East 87 The world is waiting for the South West 93 The world is waiting for London 100 References THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 5

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9 THE WORLD IS WAITING The tabling of the Airports National Policy Statement (NPS) on Heathrow expansion is a crucial milestone towards keeping Britain competitive on the world stage. Strong transport infrastructure underpins a strong economy, and Heathrow expansion is a vital project that will enable the UK to remain a confident outward-looking trading nation long into the future. Now, every Member of Parliament is being asked to vote on the NPS which, if approved, will allow us to proceed with our planning application to build Britain s new runway. Heathrow expansion is about more than just a bit of tarmac in the South East. It matters to every constituency in Britain. The project will connect this country, its businesses, its goods, to new markets across the globe. Closer to home, expansion means strengthening regional connectivity. With new domestic routes to other UK airports, we will connect Heathrow to areas which today are cut off from the nation s only hub. Together, these new domestic links and new long-haul trading routes will mean benefits will be felt the length and breadth of this great nation. One of our core guiding principles for this project, is to maximise the benefits of an expanded Heathrow for the whole of the UK. As part of this commitment, we have visited every region and nation of the UK to have a National Conversation with local businesses, local authorities, Chambers of Commerce, entrepreneurs, and MPs, to discuss how for every part of the country, Heathrow expansion can play a part in their vision and plans for a successful future, post-brexit. I took part in one of these discussions in Norwich, and hearing from the University of East Anglia the role Heathrow plays in attracting students and investment from all of the world, for me was a fantastic example of why Heathrow expansion matters. It will create thousands of jobs and apprenticeships around the airport, across London and throughout the country. It will stimulate key British industries such as manufacturing, retail, and tourism and other industries which are dependent on international links to get our goods out to the world, and bring visitors and investment in. It will open up important new markets to our exporters, giving the UK a real chance to compete on the world stage. And during construction, it will boost British businesses of all sizes, leaving a nationwide infrastructure legacy. This report sets out how Heathrow will deliver the national benefits this country needs and expects from a vital national infrastructure project. And while the national benefits are important, we have always been clear that expansion is not a choice between the country and our communities - it will deliver for both. Even with expansion, fewer people will be affected by noise than were affected in 2013, thanks to quieter planes, quieter airport design, quieter operations, and an extended night flight ban to 6.5 hours. We have designed our plans to treat local communities fairly with 700 million set aside to insulate local homes, a commitment to create 10,000 apprenticeships at the airport and through our supply chain, and an independent Community Engagement Board to hold us to account. We have an ambitious plan to treble our rail capacity by 2040 and enable 30 million more passengers to use public transport tackling the real source of emissions: road vehicles. We have committed to a triple lock guarantee on air quality, including a promise that capacity will only be released when it is clear that the airport s direct contribution will not materially delay compliance with the UK s legal air quality obligations. And we will grow our airport sustainably through our aspiration to make growth from our new runway carbon-neutral, so generations to come can enjoy a world worth travelling. Heathrow expansion is the right choice for the economy and the environment. It is entirely privately-funded, with long-term investors ready to finance the project, at no cost to the UK taxpayer. It will mean more competition and choice for passengers, and we will expand while keeping airport charges close to current levels. Expansion will help every region and nation to connect to new opportunities across the world. It s for these reasons that our plan is supported by unions, communities, airlines and businesses of all sizes across the country. I hope you enjoy reading our report, and that you will continue to work with us in the years ahead to create a true legacy for the whole of the UK. The world is waiting let s expand and connect all of Britain to global growth. John Holland-Kaye CEO, Heathrow THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 7

10 OUR NATIONAL CONVERSATION As we build Britain s new runway, we are determined to maximise its benefits for all of the UK. That is why this year we held a National Conversation a roundtable discussion in all twelve regions and nations to understand how an expanded Heathrow fits into regional plans, and how each area can best reap the benefits. Every conversation was unique, and has helped us to understand the thoughts and ambitions of every region, for Britain s new runway. But across all twelve groups, four major priorities for Heathrow expansion became clear: DUNDEE NEWCASTLE 1 Through expansion, Heathrow must support exporters in every region and nation through improved cargo capacity and connections to the world 2 Through expansion, Heathrow must provide more frequent and affordable connections to every region and nation BELFAST BLACKPOOL DONCASTER NOTTINGHAM TELFORD NORWICH 3 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into every region and nation SWANSEA BRISTOL LONDON ASHFORD 4 Through expansion, Heathrow must support and be integrated into the economic development of every region and nation. Some of the organisations which participated in our roundtables: PAGE 8 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

11 Speaking to every region and nation of the UK Between February and May of this year, we travelled round all twelve regions and nations of the UK, hosting roundtables to discuss how we can maximise the benefits of expansion for all of Britain. A total of 157 people participated in the events, which brought together local MPs and representatives from Chambers of Commerce, small and medium-sized enterprises (SMEs), export businesses, entrepreneurs and Local Enterprise Partnerships. Each conversation was focused around the following four questions: 1 What are the key priorities for your region for the next decade and beyond? 2 With those in mind, how do you think Heathrow expansion could benefit your area? 3 What are the barriers to achieving these benefits or maximising them to the full potential? 4 What do you think are the solutions to overcoming these barriers and ensuring the full opportunities of Heathrow expansion are realised? These priorities and the input from the discussions will be at the heart of our engagement with regions and nations as we progress through the planning process, with a lot of work to come in the years ahead. But we have identified two areas now, to ensure we are maximising benefits today and in the future. Continuing the Conversation To address each of the priorities, and ensure they remain at the core of our expansion plans as they evolve, it is crucial that we continue our National Conversation. Therefore, Heathrow is committed to working more closely than ever with the British Chambers of Commerce (BCC) and the Accredited Chamber of Commerce network, beyond a vote in the House of Commons, through the Development Consent Order process and into the construction and operation of a third runway. Every year, from this year until the new runway is operational, Heathrow will support an annual event to update Chambers on our plans and discuss our next steps. Strengthening of our engagement with BCC and the Chamber network will ensure that at every stage, the priorities of every region and nation are our priorities so that we build a new runway for all of the UK. Boosting British Tourism And, to provide an instant boost for local economies across the UK we will use our position as Britain s hub airport to showcase the tourism offering of Britain to the world. Building on our existing partnership with UK Government s GREAT Britain campaign, over the course of 2018 we will do more to show off UK landmarks to our 78 million passengers. This will include a 3D experiential frame for every region and nation in our terminals, and themed gaterooms for Scotland, Wales, and Northern Ireland, helping all parts of the UK to build their brand among passengers flying into Heathrow from the 204 destinations in 85 countries worldwide. This tourism takeover with the GREAT Britain campaign is an early step in our plan to make sure that as we expand, we deliver growth for every part of the UK. Turn to your region s section to find: Details of what was discussed at your region s roundtable event What next steps Heathrow will take to meet your region s priorities How your region will benefit from expansion Fantastic businesses from your region and what expansion means to them

12 BUILDING AN OUTWARD- LOOKING TRADING NATION Heathrow is a cornerstone of the UK economy. For over 70 years, we ve been connecting Britain to trade all over the world driving growth, jobs and new opportunities for the whole of the UK. We are Britain s largest port by value for exports with countries outside the EU and Switzerland 1, responsible for over 30% of exports to these markets. In 2017, nearly 106 billion worth of trade with non-eu countries passed through Heathrow larger than Felixstowe and Southampton (the next two largest ports for non-eu trade) combined. The decision to expand Heathrow is a clear signal to investors around the world that Britain is open for business. Expansion will deliver the infrastructure Britain needs to secure its future as an outwardlooking trading nation. Connecting to global growth Heathrow plays a vital role in connecting Britain to the rest of the world. As the UK prepares to leave the EU, access to the fastest growing markets in Asia and America will prove essential to a successful trading future. But some of Britain s key trading routes via Heathrow are already often full. Expansion at Britain s hub airport will deliver up to 40 new long-haul routes, making Britain one of the best-connected countries in the world. Access to new, emerging markets will enable businesses, including SMEs from Scotland to the South West, to benefit from global trade. The new runway will also mean a doubling of cargo capacity at the airport, supporting more businesses, large and small, to reach out and trade with the world. PAGE 10 THE WORLD IS WAITING

13 DID YOU KNOW? Heathrow is the UK s largest port by value for non-eu markets: of non-eu UK export goods by value travel through Heathrow in 2017 HEATHROW The value of UK goods that travelled via Heathrow in m TONNES of air cargo travels in the belly hold of passenger aircraft The volume of cargo that travelled through Heathrow in 2017 Top five exports by weight (in kg) * 41.5m Fresh or chilled Atlantic salmon 25.1m Books and printed materials 5.0m Fresh or chilled trout 4.8m Medicaments 3.6m Vehicle parts and accessories * Trade info is by value for 2017 and excludes; exports to the EU and Switzerland; Inland Clearance & Low Value Trade and is sourced from uktradeinfo.com. For more information, please visit: IT S TIME FOR HEATHROW EXPANSION PAGE 11

14 A GATEWAY BRITAIN CAN BE PROUD OF As Britain s busiest and only hub airport, Heathrow is the country s front door for businesses and investors from all over the world. For tourists, Heathrow is a warm welcome to the UK, and an invitation to return to see more of what the country has to offer. That s why we have invested over 11 billion over the past decade transforming the airport and improving the passenger experience so that as we welcome new investors, businesses and families from all over the world into Britain, we do so with pride. With expansion, dozens of new long and short-haul routes, as well as added journeys on existing routes, will help bring more passengers from across the globe to the UK. As the UK s hub, Heathrow handles the majority of all inbound long-haul leisure and tourist passengers using London airports 2. Through partnerships with groups such as the Government s GREAT Britain campaign, and allocating space at Heathrow to showcase the best of British landmarks, we encourage our 78 million annual passengers from all over the world to venture across the whole of the UK. Expansion will help boost tourism across the country, by enabling the introduction of new routes to UK destinations as well as more flights on existing routes, boosting competition and choice for passengers. Alongside this, new and improved links by road and rail, including the proposed Western Rail Link and Southern Rail Access, as well as Crossrail and HS2, will help drive tourism to every corner of the UK. SPOTLIGHT ON CHINA On track to become the world s largest economy by 2030, China is already a major UK investor and trading partner. A recent study by Frontier Economics 3 showed that regular connections between Heathrow and China contribute 510 million a year to UK plc, and create over 14,550 jobs across the country. The study found that adding just one flight to each of Heathrow s five routes to China would deliver up to an extra 16 million to the economy each year, and create up to 530 jobs. This is just a small slice of what Heathrow expansion could mean for the UK. PAGE 12 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

15 BOOSTING TRADE ACROSS BRITAIN Marine Harvest Scotland, Fort William When Marine Harvest Scotland have several thousand kilos of fresh salmon to export they look to Heathrow, despite being over 500 miles away in Fort William. The salmon makes the journey to Heathrow because nowhere else except the UK s hub can offer the connections needed to export fresh salmon quickly to global markets. Marine Harvest s salmon is exported to China, the Unites States, the UAE, Lebanon and South Korea, among other destinations providing fresh produce to kitchens, stalls and top-class eateries across the world. DID YOU KNOW? Top exporting destinations via Heathrow (2017) 4 United States EU Hong Kong China Turkey UAE 15.06bn 5.60bn 5.05bn 3.11bn 3.02bn 4.25bn We are the world s largest supplier of farmed salmon, and have this year exported some 6,240 tonnes via Heathrow. We use Heathrow because it offers wide-bodied aircraft flying to more destinations, and regional airports just do not have that availability. Angus MacKay, Process Planning Manager Marine Harvest Scotland THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 13

16 WHAT IS A HUB AIRPORT? There are two types of airports hubs and point-to-point models. Nearly all airports, including Gatwick, Luton and Stansted, are point-to-point. Heathrow is the UK s only hub airport. Hub airports like Heathrow are unique because they pool demand for global connections. This enables more flights to more destinations that other airports can t support and with this, greater competition and choice for consumers. As the UK s only hub airport, over half of Heathrow s 78 million annual passengers travel to long-haul destinations not served by other UK airports. We complement, rather than compete with, other UK airports by connecting passengers and businesses from all over Britain to the world. We are also one of the largest airports in the world, flying to over 200 destinations in 85 countries worldwide, which means we support the global connections that other UK airports can t. Why Britain s hub airport matters Hub airports like Heathrow exist all over the world. Wellknown hubs include Singapore Changi, Dubai International, Amsterdam Schiphol, Paris Charles De Gaulle and Frankfurt airports. A global race is occurring between these hubs to build connections with fast-emerging economies across Asia and South America. Each of these hubs has additional capacity, and is investing in its growth. But Heathrow has been virtually full for 10 years, and is at risk of falling behind its global competitors. That s why expanding and investing in the UK s hub airport is crucial for Britain to keep competing on the world stage. How do hub airports benefit passengers? 1 A greater choice of destinations DID YOU KNOW? There are 10 Chinese destinations served by European airports that are not served directly by Heathrow: Sustainable connections with the world Cheaper fares due to competition between airlines Easier access to and from the airport Urumqi Qingdao Xi'an Shanghai Nanjing Wuhan Chengdu Hangzhou Chongqing Changsha Kunming Beijing Guangzhou Shenyang Sanya Tianjin Xiamen Shenzhen Hong Kong Direct connection to Heathrow before 2018 Direct connection to Heathrow since 2018 Served by EU hubs and not by Heathrow PAGE 14 THE WORLD IS WAITING

17 A hub airport is the most efficient way of connecting many points: Why aren t two hubs better than one? Hubs work by pooling demand from passengers and exporters to make more routes and regular flights viable. Two or more hubs do not work because they split this demand, making fewer routes and flights possible. Hub linking 9 points requires 8 routes Point-to-Point linking 8 points requires 28 routes Transfer passengers are critical to supporting long-haul flights from a hub a typical flight from Heathrow to Johannesburg (based on 2015 data) comprises: 44% from London 6% from UK regions 16% from Europe 18% from USA 1% from rest of world 15% spare capacity Cargo and passenger luggage THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 15

18 BUILDING A MORE CONNECTED BRITAIN As the UK s hub airport, Heathrow connects passengers and businesses of all sizes to the rest of the world. Since the Government s decision to back expansion at Heathrow 5, we have taken steps to make it easier and more affordable for passengers all over the UK to travel to and from the nation s hub. And, as the UK prepares to leave the European Union, we plan to include proposals within our application for planning consent for expansion that will allow the release an additional 25,000 air traffic movements per year before the third runway opens, to deliver a vital trading boost. We are committed to bringing Britain closer together as we expand. That s why we devised Heathrow s 9-point Connectivity Plan, setting out the actions we are taking to boost connectivity across the UK, and areas where Government can act to further enhance domestic links across the UK with expansion. HEATHROW S 9-POINT CONNECTIVITY PLAN 1 INTRODUCED A 15 PASSENGER DISCOUNT ON DOMESTIC FLIGHTS In January 2017, we launched a 10 discount on departing domestic passenger charges, which we increased to 15 in January Off the back of this, in March 2017 Flybe launched two new services, connecting passengers from Heathrow to Edinburgh and Aberdeen. 2 COMMITTED TO A 10 MILLION ROUTE DEVELOPMENT FUND We have committed to deliver a 10 million Route Development Fund with expansion, to support airlines hoping to establish new domestic routes into Heathrow as it expands. This could support new domestic routes from airports like Dundee, Newquay and Liverpool. We are partnering with other UK airports, through the Regional and Business Airports Group (RABA), to progress these plans. 3 CAMPAIGNING FOR THE ABOLITION OF DOMESTIC AIR PASSENGER DUTY Heathrow has called on the UK Government to abolish Air Passenger Duty on all domestic routes, which will become possible after Brexit. Abolishing Air Passenger Duty could save UK passengers and businesses up to 225 million, according to Frontier Economics, and facilitate an 8% increase in demand for domestic air routes. 4 CONNECTING THE UK S 100 LARGEST TOWNS AND CITIES As set out in our sustainability strategy Heathrow 2.0, we are developing plans to enhance Heathrow s place at the heart of the UK transport system. We will soon publish the next steps on how we ll connect the UK s 100 largest towns and cities to Heathrow in the fastest and most sustainable way. 5 SUPPORTING WESTERN RAIL LINK AND SOUTHERN RAIL ACCESS Our plans to bring Britain closer will be enhanced by the proposed Western Rail Link and Southern Rail Access which would enable better connections between Heathrow, and the South West and South East. We continue to support these schemes wholeheartedly, and urge Network Rail and Government to progress with them. 6 IMPROVING CONNECTIONS TO LONDON The introduction of Crossrail will significantly improve links between Heathrow and destinations in central London and to the east. From December 2019, six Elizabeth Line trains an hour will run into Heathrow, with Oyster and contactless payments available on all services for convenience. We are working together with TfL and DfT to boost rail connections to the UK s hub. 7 WORKING WITH THE HS2 PROGRAMME TO CONNECT PASSENGERS TO THE NORTH The development of an HS2 station at Old Oak Common will create a seamless 12-minute interchange to Heathrow, delivering quicker and easier journeys for passengers from the Midlands and parts of the North. For example, with HS2, cities in the East Midlands will benefit from a 60-minute reduction in travel time to Heathrow. 8 SUPPORTING PUBLIC SERVICE OBLIGATION ROUTES TO HEATHROW Today, Public Service Obligation routes are specified by the cities they link, rather than the airports. But we believe this is no longer suitable in a globalised economy, in which regions across the UK want to connect with the world through London made possible by Britain s hub airport. We encourage the Government to investigate the use of Public Service Obligation routes between Heathrow and specific UK cities, to help protect regional connections to Britain s hub airport. 9 SUPPORTING THE RING-FENCING OF SLOTS FOR DOMESTIC ROUTES Leaving the EU will create an opportunity to prioritise and protect domestic air links to and from Heathrow. New rules could be created to ring-fence a certain portion of new slots at Heathrow for domestic routes which could enable new links between Heathrow and Dundee, Newquay or Liverpool. We are the first UK airport to promote the principle of ring-fencing slots and will continue to work with airlines and the Government to support this option. PAGE 16 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

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20 Business Summit locations (in last three years) Logistics hubs shortlisted locations PAGE 18 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

21 BUILDING A MORE SECURE ECONOMY FOR EVERYONE As a major national infrastructure project, the successful delivery of expansion will require resources from all corners of the country and must benefit all corners of the country. This is why we have taken steps to ensure businesses small and large, in every region and nation, are able to get involved and take advantage of the economic benefits Heathrow expansion will bring. Logistics Hubs Heathrow expansion is a major national infrastructure project that will require expertise from every part of Britain. Which is why we are locating four logistics hubs off-site centres for pre-assembly and consolidation across the country, to help deliver expansion efficiently, sustainably, and to source the skills we need to expand from all across the UK. These revolutionary hubs represent a significant step change in the way national infrastructure is built, with Heathrow expansion being the first major infrastructure project in Britain to pioneer their use on a large scale. They will enable businesses across the country to get involved in Heathrow expansion, helping to rebalance Britain s economy for the long-term. Business Summits Heathrow is committed to using its position as a national asset for the benefit of SMEs around the country as committed to in Heathrow 2.0, Heathrow s plan for sustainable growth. Our goal is to enable more UK SMEs to connect to new opportunities for growth locally, nationally and internationally. Through our Business Summits we are working to connect SMEs with each other, with the airport, and, through the airport, to the world. In 2018, Heathrow is hosting a series of Heathrow Business Summits across the UK. These events provide a unique opportunity for SMEs to connect and trade face-to-face with other SMEs, Heathrow s supply chain and in partnership with the Department for International Trade, explore exporting opportunities. The airport spends up to 1.5 billion annually with more than 1,400 suppliers from around the UK and there will be more work on the horizon under Heathrow s plans for expansion. Construction of the runway would be the UK s largest privately-funded infrastructure project and small and medium-sized businesses will be critical to delivering the 14 billion investment. Heathrow Skills Taskforce As a truly national infrastructure project, Heathrow expansion is a unique opportunity to equip Britain s future workforce with the skills it needs to succeed long into the future. That s why, under the leadership of former Secretary of State for Education and Employment, Lord David Blunkett, we set up our Skills Taskforce. Uniting experts across education, local government, unions and the voluntary and private sectors, the Taskforce has been working since the start of 2017 to develop recommendations to support a skills strategy for an expanded Heathrow and will publish these recommendations in late The Taskforce is also working with other major infrastructure projects, like Thames Tideway, HS2, Crossrail and Hinkley Point, to discuss how we can collaborate and cultivate the skills Britain needs to build the infrastructure of tomorrow. THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 19

22 BUILDING A MORE SUSTAINABLE FUTURE Being a responsible neighbour We have a strong and enduring commitment to support the communities around our airport. We want to be a better neighbour to those around us, and for the area around Heathrow to be a great place to live. A key part of achieving this is through delivering against our commitments to meet or exceed the package of recommendations made by the Airports Commission. Being a responsible neighbour also means treating our neighbours fairly as the airport expands. Those whose homes need to be compulsory purchased will receive 25% above the market value of their home, plus legal fees and stamp duty costs. We have also offered those close to the new airport boundary the option to take the same terms, giving local residents who will be close to the new airport boundary the choice to move to a new home if they wish. Being a responsible neighbour means listening to our local communities, and making sure that people and businesses have their say in our plans for the new runway. As part of our planning process we are holding comprehensive consultations, the first of which took place earlier this year. Throughout the planning process we will continue to engage with our neighbours, airlines, partners, statutory bodies and elected representatives and Government to make this a project that delivers fairly for everyone. Heathrow s third runway commitments to our neighbours 6 An extended ban on scheduled night flights to 6.5 hours Legally binding noise envelope Predictable periods of respite for every local community Extending compensation to over 3,000 additional properties 1bn compensation package for local people New independent Community Engagement Board Backing a new Independent Noise Authority 10,000 apprenticeships Growth in accordance with air quality rules Accept Government ban on fourth runway PAGE 20 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

23 Ambitious environmental plans Heathrow expansion was given the green light because of the crucial role it will play in securing the UK economy and our connections to the world. But expansion is a not a choice between the economy and environment. As we expand, we need to do so sustainably, maximising positive impacts and minimising negative impacts on our local community, environment and economy wherever possible. That s why in February 2017, we launched Heathrow 2.0, our ambitious strategy for sustainable growth. It sets out our goals and the strategies we are putting in place to help achieve them, including an aspiration to make growth from our new runway carbon neutral. Heathrow 2.0 is structured around four pillars: A great place to work: helping our people fulfil their potential and work together to lead change with energy and pride A great place to live: being a good neighbour and a responsible citizen, improving the quality of life of our local communities A thriving sustainable economy: delivering opportunities for business that will make the UK stronger and more sustainable A world worth travelling: ensuring that future generations can explore and enjoy our beautiful world. Of our ten flagship goals, a year on we have completed three of these, and have also set new goals: Heathrow has been powered with 100% renewable electricity since April 2017 and we are now working towards achieving carbon-neutral growth from the new runway In January 2018 we launched a sustainability innovation prize as the first initiative through our Centre of Excellence, which is seeking radical new ideas and innovation against three themes of circular economy, advanced materials and social wellbeing Heathrow is now a living Wage Employer and is the first airport in Britain to be fully accredited by the Living Wage Foundation. Under the accreditation, 3,200 airport workers in Heathrow s directly engaged supply chain will be paid at least the revised London Living Wage by the end of THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 21

24 BUILDING A MORE SUSTAINABLE FUTURE How is Heathrow tackling emissions? Between 2008 and 2013, ground-based NOx emissions from airport activity were reduced by 16%, and today, we monitor constantly against air quality standards. We have promised that additional capacity at Heathrow will be delivered in accordance with the UK s legal air quality obligations. This is our triple-lock guarantee: 1 Meeting our existing commitment to improve air quality, by improving surface access and trebling our rail capacity by 2040, enabling 30 million more passengers to travel to and from Heathrow by public transport 2 Ensuring further options are ready to be introduced if required to reduce traffic, for example, introducing an airport congestion charge if needed 3 Binding our commitment on air quality, by ensuring that new capacity at an expanded Heathrow is only released when it is clear the airport s direct contribution to air quality will not delay compliance with EU air quality limits. We are also targeting the conversion of our vehicle fleet to electric or plug-in hybrid by Today, we have the highest density of electric vehicle charging infrastructure in Europe 7 and one of the largest private fleets of electric vehicles in the UK. PAGE 22 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

25 How is Heathrow tackling noise? Heathrow has long been at the forefront of international efforts to tackle aircraft noise. We are proud of the fact that, despite the number of aircraft movements at the airport going up, our noise footprint has shrunk considerably over the past few decades. Our committed goal is to expand Heathrow whilst affecting fewer people with noise than today. Expansion provides an opportunity to continue to improve on our current approach to noise, allowing us to introduce new measures that can only be delivered with expansion. How is Heathrow tackling waste? 78 million passengers currently pass through the airport annually, using over 13.5 million disposable coffee cups. Recycling this amount could see the number of recycled cups in the UK increase by 200% 9. After a successful trial of a reusable cup system and ban on single-use cups in our head office, we have introduced plans to recycle and standardise all single-use coffee cups by the end of 2018, from over 20 retail and business lounge partners across the airport. IT S TIME FOR HEATHROW EXPANSION PAGE 23

26 WHAT EXPANSION MEANS FOR UK BUSINESSES RubyBlue As Northern Ireland s first craft spirits producer, RubyBlue Spirits make award-winning potato vodkas and unique fruit liqueurs from their distillery in Moira, County Antrim. As the business grows, RubyBlue Spirits is looking to increase its export opportunities. With expansion, Heathrow will help connect businesses across Northern Ireland, like RubyBlue Spirits, to new global markets. At Hughes Craft Distillery, Heathrow is our gateway to markets across the world. Through fast and frequent domestic connections between Heathrow and Northern Ireland, we can get our products on shelves all over the globe. Better domestic connections from Heathrow expansion are vital for businesses like ours to thrive. They will mean more growing businesses across the UK can reach out and trade with the world, driving growth and investment for local communities in every region. Barbara Hughes Managing Director, Hughes Craft Distillery Ltd PAGE 24 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

27 Jacobite Cruises In May 2016 a new daily air service reconnected Heathrow and Inverness. In just four months, Jacobite, the largest cruise company on Loch Ness, saw a 12% jump in visitors - with 7% coming from new tourist markets in Asia and regular long-haul travellers from North America. With expansion, we will boost our domestic connections, linking more regions and nations to Heathrow and the growth opportunities that this yields. A link between Heathrow and Inverness has been the boost that the Highlands and Islands needed to build on Scotland s natural strengths and capitalise on the international appeal that our region holds. It is from a direct link to a hub airport where passengers can easily transfer from around the world that this 12% jump in visitors has occurred to benefit the Scottish regions and economy and I hope it will encourage more links to Scotland from an expanded Heathrow in the future. Freda Newton, Managing Director, Loch Ness by Jacobite THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 25

28 EXPANSION: SUPPORTED ACROSS THE UK Over 40 UK airports Chambers of Commerce Unions & leading business groups OVER 40 CHAMBERS OF COMMERCE ACROSS THE UK Over 100,000 local residents 10 PAGE 26 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

29 THE WORLD IS WAITING FOR THE WORLD IS WAITING FOR SCOTLAND SCOTLAND Eilean Donan Castle, Dornie

30 HEATHROW: A GATEWAY TO SCOTLAND Scotland s cities each have a unique economic story to tell. Edinburgh is home to Skyscanner and FanDuel, tech start-ups that are now valued at over $1 billion each 11. Glasgow is home to 130,000 students from 135 countries across its five higher education institutions and three super colleges 12. Aberdeen has put plans in place to become the go to location for oil and gas sector innovation, while the city s port is one of Europe s leading marine support centres for offshore energy 13. There are many more examples. The rural economy is equally diverse. Scotland is the largest producer of farmed Atlantic salmon in the EU and one of the top three producers in the world (after Norway and Chile) 14. The Scotch Whisky industry which contributes almost 5 billion a year to Scotland s economy supports 7,000 jobs in rural areas 15. The tourismrelated industries generate over 1 billion in economic output for the rural parts of Scotland on an annual basis. From students to start-ups, salmon to Scotch whisky: Scotland has it all. This global nation needs a hub through which to invite tourists in and send goods out to the world. Heathrow expansion is that gateway and will connect Scotland and all it offers with markets across the world. A Memorandum of Understanding signed In October 2016, the Scottish Government and Heathrow signed a Memorandum of Understanding (MOU), outlining the key benefits expansion is expected to deliver for Scotland and Heathrow s proposals to help deliver this. The Memorandum of Understanding included: The creation of up to 16,000 new jobs across the country as a result of expansion Heathrow establishing a logistics hub in Scotland 200 million worth of spend in Scotland during planning and construction of the runway A 10 million Route Development Fund to help support new domestic routes, which could include new routes between Heathrow and Scotland A 10 reduction of domestic passenger landing charges into Heathrow (which has already been achieved and extended by a further 5) A direct link to Britain s hub airport has proven to create major benefits to the Scottish regions, in particular by boosting tourism from visitors all over the world. Expansion at Heathrow will bring more links between Scotland and the world and a further boost to the nation s economy. Freda Newton, Managing Director Loch Ness by Jacobite PAGE 28 THE WORLD IS WAITING

31 THE WORLD IS WAITING FOR SCOTLAND CASE STUDY WALKERS SHORTBREAD The Walkers journey began in the late 19th century when Joseph Walker opened a bakery with the ambition of producing The World s Finest Shortbread. 120 years later, Walkers remains a family-run firm. Despite having grown to become an internationally recognised brand and to employ well over a thousand people, community values are still integral to the business. Walkers headquarters are based in Aberlour just north of the Cairngorms National Park and new products are still tested at the local village shop. Air connectivity is important to Walkers. By the 1970s, the company was exporting shortbread to over 60 countries around the world. Today, it exports to over 100 countries, including to places as far away as Australia, Japan, Canada and the USA. As the number of export destinations have grown, so too have the importance of international markets to Walkers bottom line: overseas sales now make up almost half of Walkers entire business. Heathrow acts as a shop window to the world for Walkers shortbread. The business has been involved in travel retail for over 40 years now, working with outlets such as World Duty Free and WH Smith. Because of its presence across Heathrow s terminals, expansion is a transformational opportunity for Walkers. Millions more passengers, and up to 40 new long-haul trading routes from Heathrow, will mean more people seeing Walkers products on display, and more international markets to trade with. IT S TIME FOR HEATHROW EXPANSION PAGE 29

32 HEATHROW: A GATEWAY TO SCOTLAND Scotland at a glance 16 How could Scotland benefit from the UK having new and frequent connections to more markets across the globe? In 2017, 2.8 million air passengers travelled between Heathrow and Scottish airports. With expansion, there is the potential for more routes to Scottish destinations, such as Dundee. Scottish businesses exported 28.8 billion worth of goods in Scotland s top five export partners are the Netherlands, USA, Germany, China and France. More than 50,000 overseas students enrol in Scottish higher-education institutions every year. More than half of these students come from outside of the EU. Almost three million international tourists visit Scotland in a year, spending nearly 2 billion whilst on their trips. Expanding Heathrow is estimated to create up to 16,000 jobs 17 for Scotland, and up to 17 billion 18 in economic growth, according to independent analysis from Quod based on data from the Airports Commission. Heathrow is working with the Scottish Government to locate a new supply chain hub in Scotland where materials for Heathrow s new runway will be preassembled or manufactured. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years Existing routes today Potential new air routes with expansion * * Potential new routes based on indicative route maps published by easyjet and Flybe GLASGOW PRESTWICK INVERNESS ABERDEEN DUNDEE EDINBURGH Expansion at Heathrow and the new trade routes it will create are key for us to continue reaching customers all round the world. Robert Anderson, CEO Tomatin Distillery Co Ltd. As Britain s hub airport, only Heathrow can provide us with the global connections we need to get our salmon to stores, stalls and dinner tables across the world. Expanding Heathrow will help us to boost our current exports and reach new trade opportunities in new markets. Steve Bracken, Business Support Manager Marine Harvest PAGE 30 THE WORLD IS WAITING

33 THE WORLD IS WAITING FOR SCOTLAND V&A Dundee the UK s first design museum outside of London A SPOTLIGHT ON DUNDEE World-class golf courses, outstanding natural beauty and a fascinating cultural and economic history attract visitors to the east of Scotland from across the globe. In March 2018, we went along to Dundee to speak to business and community leaders about their vision for Dundee s future and how Heathrow expansion fits into their plans. Feedback from the conversation included: Dundee has award-winning museums in Discovery Point, about Captain Scott s Antarctic expeditions and Verdant Works, on Dundee s textile industry. V&A Dundee the UK s first design museum outside of London is due to open in the Autumn and has brought international recognition to the region. Better transport links, including a potential new route from Dundee to an expanded Heathrow, could help connect more people to Dundee. Such a route would also be key to encouraging visitors to take longer stays, as the majority of today s visitors are day-trippers. Less than 50 miles from Dundee, more than a fifth of Aberdeen Airport s passengers travel to and from Heathrow, so this direct route to London and to onward global destinations is of crucial importance to the area. The airport has been successful in attracting some of the world s largest airlines, such as British Airways, KLM and Air France. Attendees noted the sustainability of some routes can be fragile (especially given the cyclical nature of the oil and gas industry that drives the local economy) and needs protection so the potential allocation of new slots created by Heathrow expansion is of great interest. Dundee Airport today is cut off from the UK s hub. It handled just over 20,000 passengers in Return flights between Dundee and London Stansted are viable because of funding from the UK Government, Transport Scotland and Dundee City Council. The airport can grow, but only with the right operating environment. For example, the Flybe route between Dundee and Amsterdam was cancelled because of issues related to radar coverage, after having been initially successful. While the airport is investing improvements to communications equipment and the passenger terminal are listed in the Tay Cities Deal attendees thought that some Civil Aviation Authority (CAA) regulations can make investment more difficult to put in place. Exporting ability is crucial for Dundee and the surrounding area. Key sectors for the region include oil and gas, renewables, gaming and food and drink. Strengthening and, where possible, adding connections between Scotland and Heathrow is vital for supporting Scottish exporters. One of Heathrow s four logistics hubs will be based in Scotland. This will enable businesses across the country to become part of the Heathrow expansion supply chain and reap the benefits of working on a major national infrastructure project. Please see our summary and priorities page overleaf for how Heathrow is supporting Scotland today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 31

34 HEATHROW: A GATEWAY TO SCOTLAND SUMMARY FOR SCOTLAND Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must provide more frequent and affordable connections to Scotland Today: In January 2017, Heathrow introduced a 10 discount on departing domestic passenger charges which was increased by a further 50% in January 2018 (to 15). Off the back of this, Flybe has introduced new services from Heathrow to Edinburgh and Aberdeen, supporting more competition and choice for passengers. Tomorrow: Heathrow is working with the Scottish Government to protect existing routes and potentially add new flights to currently unserved cities across Scotland, such as Dundee. This is supported by a 10 million Route Development Fund, which Heathrow has committed to, to provide support for routes to new UK destinations from an expanded Heathrow. Suggestion: Heathrow could use its position and expertise to support Scottish airports in investing and growing to their full potential. Heathrow should use its position to build support for specifying Public Service Obligation (PSO) routes by the airports they link, rather than cities, which is the current policy. The airport should continue to urge Government to investigate the use of PSO routes between Heathrow and specific UK cities in circumstances where airlines would not enter the market based solely on commercial interests. Dundee Airport support this as well. 2 Through expansion, Heathrow must support Scottish exporters through improved cargo capacity and connections to the world Today: Last year Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners included Scotland s British Association of Snowsport Instructors, based in Grantown-on-Spey, which will use the funding to exhibit at the 2018 Winter Sports Expo in Beijing. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across Scotland trade with the world. As Heathrow expands, it is also looking at how freight processing can be improved across the airport. Suggestion: Heathrow could work with Chambers of Commerce and organisations such as Scottish Enterprise to help SMEs understand more about how they can start exporting attendees suggested a guide to customs arrangements and where to find advice. Heathrow could work with the Chamber network to determine the key issues where advice and further assistance is required. 3 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into Scotland Today: In May 2016, a new daily air service reconnected Heathrow and Inverness, benefiting business and tourism across the country. Jacobite, the largest cruise company on Loch Ness, saw a 12% jump in visitors in just four months, with 7% coming from new tourist markets in Asia and North America. Tomorrow: Heathrow has pledged to showcase every region and nation to its 78 million passengers, which will help promote Scotland s offer to millions of incoming tourists from around the world. This includes a Scotland gateroom in Terminal 3 showcasing the new V&A Dundee, and other fantastic Scottish landmarks, in partnership with Visit Scotland and the GREAT Britain campaign. Suggestion: Heathrow is a gateway to the UK. Heathrow could do more to advertise the tourism opportunities Scotland offers by continuing to work with Visit Scotland and the GREAT campaign and amplify their activity to Heathrow passengers. 4 Through expansion, Heathrow must support and be integrated into the economic development of Scotland Today: Heathrow is expanding its successful Business Summit programme, which last year welcomed businesses across Edinburgh to meet and build relationships with some of the airport s largest suppliers. The next Scotland event will take place in Glasgow in September Tomorrow: Heathrow is in the process of visiting and selecting four logistics hubs, off-site construction centres that will enable businesses across the country to get involved in expansion. Of the 65 long-listed sites still in the running, ten are located in Scotland. As set out in the Memorandum of Understanding between Heathrow and the Scottish Government, one of the final four logistics hubs will be in Scotland. Suggestion: Through its Skills Taskforce and other engagement, Heathrow should continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in Scotland to help inform and enhance their own plans. PAGE 32 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

35 THE WORLD IS WAITING FOR THE WORLD IS WAITING FOR WALES WALES Snowdonia

36 HEATHROW: HELPING WALES TO BUILD ON ECONOMIC STRENGTHS Across its length and breadth, Wales has fantastic economic stories to tell. In the north there are world-class centres of aerospace engineering and nuclear energy. In the south there are businesses that specialise in cutting-edge metallics innovation and marine technology. National labour market and business growth statistics are being recorded at historically strong levels 19. Wales has exciting plans to build on these economic strengths. The two largest Welsh cities Cardiff and Swansea have ambitious investment programmes, including the delivery of the South East Wales Metro and the regeneration of Pembroke Dock 20. Outside of cities, rural Wales is a major attraction for tourists and has award-winning food producers that export all over the world 21. The Welsh Government has committed to helping rural businesses diversify 22. And the proposed Western Rail Link to Heathrow, which would cut journey times dramatically for Welsh passengers to get to the UK s hub, is making exciting progress, with a public consultation currently underway. The Welsh economy is on the up and its international links are helping it. More routes to more international destinations via an expanded Heathrow will help the interlinked economies of urban and rural Wales to thrive. An agreement between the Welsh Government and Heathrow In March 2017 Heathrow signed a Strategic Partnership with the Welsh Government to ensure the full benefits of expansion are felt in Wales. Areas of co-operation and delivery in the Statement of Intent include: Broadening and seeking new supply chain opportunities in Wales to help meet the operational objectives of Heathrow Airport Exploring the possibility of locating an off-site manufacturing logistics hub in Wales to support the delivery of the third runway Exploring the eligibility of funding for potential flights between Wales and Heathrow to be funded through the proposed Heathrow Route Development Fund.

37 THE WORLD IS WAITING FOR WALES CASE STUDY PRO STEEL ENGINEERING Pro Steel Engineering provides expertise in steel construction, fabrication welding, erecting and installation. Its services include everything from planning and design to recruitment and project management. The company s current projects include the building of Hinkley Point, expansion of Twickenham Stadium and redevelopment of Battersea Power Station. Pro Steel Engineering is hoping to be part of the supply chain for Heathrow expansion. In preparation for the opportunities that will arise, the company has built a relationship with the airport. This relationship building has included Pro Steel Engineering attending Heathrow Business Summits the airport s free-to-attend supply chain events - with the intention of attending more in the future. Establishing a relationship has had a positive outcome. Pro Steel Engineering now has a better understanding of Heathrow s approach to expansion-related procurement. Specifically, the procurement process will not be a traditional top-down relationship between client and contractors. Instead, contractors will be integrated to maximise access to expertise. Pro Steel Engineering also now has a better understanding of the issues that arise from working airside, for example, the impact it will have on insurance requirements. The connection that Heathrow has with the local Chamber of Commerce has made the opportunities arising from expansion much clearer to Pro Steel Engineering. This connection also illustrates that Heathrow has a clear commitment to working with partners across the UK, something that will be amplified by the legacy created by logistics hubs for many years after the new runway has been completed. THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 35

38 HEATHROW: HELPING WALES TO BUILD ON ECONOMIC STRENGTHS Wales at a glance 23 How could Wales benefit from the UK having new and frequent connections to more markets across the globe? Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years Wales attracted 429 Foreign Direct Investment projects between and , which generated over 18,000 new jobs. The value of Welsh exports grew by 12% last year, with the country s top export product being machinery and transport equipment. In , over 21,000 students from outside the UK enrolled in a Welsh higher-education institution. 1.1 million international visitors came to the Wales in 2016, spending over 440 million whilst on their trips. Expanding Heathrow is estimated to create up to 8,400 new jobs 24 in Wales and to deliver up to 8 billion of economic benefits 25, according to independent analysis from Quod based on data from the Airports Commission. Heathrow Airport and the Welsh Government are exploring the eligibility of potential flights between Wales and Heathrow to be funded through the proposed Heathrow Route Development Fund. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including seven in Wales. SWANSEA CARDIFF We need to think about the people coming into an expanded Heathrow not just the people going out. The local tourist industry is keen to understand how many more visitors it can expect from expansion. Heathrow expansion is great news for British exporters of all sizes. Nick Battersby, Managing Director REID Lifting Marianne Pettifor, Customer Experience Management Frogmore Consulting PAGE 36 THE WORLD IS WAITING

39 THE WORLD IS WAITING FOR WALES Swansea Marina development A SPOTLIGHT ON SWANSEA As the second largest city in Wales, with its beautiful coastlines and a unique history and cultural offering, Swansea is truly thriving. In March 2018, we went to Swansea to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Heathrow expansion will benefit local exporters. The EU is a comfort zone for exporters, as it is generally more complicated and more expensive to sell further afield. As a result, Welsh exporters are keen to see the new routes that will open up after expansion, and if more flights will lower the cost of air freight. Off-site construction is an opportunity for the local economy. The UK has a number of big infrastructure projects in the pipeline, all of which will require careful planning of resources if they are to be delivered efficiently. In this context, off-site construction can benefit local areas by retaining construction workers that would otherwise travel elsewhere for a job. The Welsh site bids for a Heathrow logistics hub were therefore a main point of discussion. New local links to Heathrow can be transformed. Infrastructure improvements are being made to improve connectivity to Heathrow. This includes the electrification of the Great Western rail route, which will reduce journey times between Wales and London, and the proposed Western Rail Link to Heathrow (which would cut journey times to Wales) is currently being consulted on and is making good progress. But more can be done. For example, attendees discussed how the cost of domestic Air Passenger Duty has impacted the viability of a regular Cardiff to London flight. Expansion provides the opportunity to be creative about improving connectivity to Heathrow. For example, could rail timetables be better co-ordinated with flight timetables? Is it possible to operate a luggage check-in service for train passengers travelling to Heathrow? Should Air Passenger Duty become a devolved matter for Wales? Please see our summary and priorities page overleaf to see how Heathrow is supporting Wales today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 37

40 HEATHROW: HELPING WALES TO BUILD ON ECONOMIC STRENGTHS SUMMARY FOR WALES Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must provide more frequent and affordable connections to the rest of Wales Today: Heathrow continues to strongly support the proposed Western Rail Link, which would mean South Wales would be less than 90 minutes from Heathrow. Tomorrow: As part of the Strategic Partnership signed between the Welsh Government and Heathrow, the airport is exploring the potential for flights between Wales and Heathrow to be funded through the proposed Heathrow Route Development Fund. Suggestion: As the UK s largest airport and only hub, Heathrow has the regulatory expertise to help push initiatives that could boost connectivity for Wales for example by continuing to urge government to abolish Air Passenger Duty on domestic flights. Heathrow should also explore how it can improve the passenger experience the transition from plane to train to help make connecting to and from Wales easier. 2 Through expansion, Heathrow must support Welsh exporters through improved cargo capacity and connections to the world Today: Last year Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. One of the winners was REID Lifting, a lifting system designer and innovator based in Chepstow, which will use its grant to make follow-up trips to countries with great potential for exports. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across Wales to trade with the world. As Heathrow expands, it is also looking at how freight processing can be improved across the airport. Suggestion: Heathrow could work with the Welsh Government, Chambers of Commerce and organisations like Business Wales to help ease exporting from Heathrow, by providing more advice on processes for businesses looking to export. Heathrow is committed to modernising its cargo operation, and could also work with HM Revenue & Customs to explore if the on-airport freight process can be improved or simplified in any way. 3 Through expansion, Heathrow must support and be integrated into the economic development of Wales Today: In July 2017, Heathrow held its first Business Summit in Wales, which is focused on encouraging growth in Heathrow s Welsh supply chain base. The Summit, which is being repeated in July 2018 in Cardiff, provides a unique opportunity to meet and secure contracts with some of Heathrow s largest suppliers. Tomorrow: Heathrow is in the process of visiting and selecting four logistics hubs, off-site construction centres that will enable businesses across the country to get involved in expansion. Of the 65 long-listed sites still in the running, seven are in Wales. Suggestion: Through the Heathrow Skills Taskforce, Heathrow has started working with the Thames Tideway, HS2, Hinkley, and other big projects to look at skills requirements and discuss key areas such as automation, bridging the skills gap, and delivering infrastructure sustainably. This work should continue and outcomes be shared so wider stakeholders can use this to inform their own sub-regional planning. 4 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into Wales Today: Heathrow is already working to build the UK s international brand among international visitors, and has partnered with the GREAT Britain campaign to boost tourism to attractions all over Britain. Famous Welsh landmarks are already on display in Terminal 3 as part of Heathrow s GREAT campaign gallery. Tomorrow: Heathrow has pledged to promote the best of every region and nation across its terminals, which will help showcase Wales to millions of incoming tourists from around the world and drive tourism to the nation. This includes plans for a Welsh-themed gateroom in Terminal 3 to be installed later this year. Suggestion: Heathrow is a gateway to the UK. The airport should continue to work with the GREAT Britain campaign and Visit Wales to maximise the benefits of expansion for the Welsh tourism sector and promote Wales to its 78 million passengers. PAGE 38 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

41 THE WORLD IS WAITING FOR NORTHERN IRELAND THE WORLD IS WAITING FOR NORTHERN IRELAND Giant s Causeway, County Antrim

42 HEATHROW: BUILDING CONNECTIONS TO NORTHERN IRELAND Northern Ireland s business population has seen significant growth in recent years and is confident of sustaining this growth into the future 26. There are obvious reasons to be confident. Northern Ireland s education system is one of the best performing in Europe, with the best GCSE and A-level results in the UK and close to eight in ten school leavers going on to higher education. It has also attracted major business investment, notably in sectors including advanced manufacturing and IT, where strong links with world-leading universities like Queen s University Belfast and Ulster University are driving innovation and productivity growth 27. Northern Ireland also has a burgeoning tourist industry, where room occupancy rates are high and growth in the sector significant. While this is centred around Belfast, attractions are spread around the country (Giant s Causeway attracted close to one million visitors in 2016), meaning that further growth would benefit the whole of the Northern Irish economy 28. The Northern Ireland economy has masses of potential and Heathrow expansion can help fulfil it, most notably via the opportunities that arise from increased tourism and exports. Tourism in Northern Ireland is on the cusp of something big but we have to have connectivity and Heathrow does that for us in an international context. Colin Neil, Chief Executive Hospitality Ulster PAGE 40 THE WORLD IS WAITING

43 THE WORLD IS WAITING FOR NORTHERN IRELAND CASE STUDY PINSENT MASONS Pinsent Masons is a global 100 law firm, specialising particularly in the advanced manufacturing and technology, energy, infrastructure, financial services and real estate sectors. Employing over 85 people in the heart of Belfast s legal quarter, Pinsent Masons services many of Northern Ireland s largest companies and organisations, including Queen s University Belfast, ASDA, Belfast Harbour Commissioners, Education Authority NI and Mutual Energy. Being connected is one of Pinsent Masons three core values. With 3,000 employees worldwide, and an international footprint encompassing seven offices across Asia Pacific, two offices in the Middle East, five offices in continental Europe and one in Africa, connecting with colleagues, clients and communities is vital for the success of the business. Heathrow expansion presents real opportunities for Pinsent Masons globally. Increased capacity, with more flights on existing and new routes can improve links with Pinsent Masons offices and clients both in the rest of the UK and the rest of the world. In Northern Ireland, Pinsent Masons would benefit from new routes to other regional airports, including City of Derry Airport, and the likely increase in tourism (and associated demand for new hotels and infrastructure) that more connections between Heathrow and Belfast would likely bring. IT S TIME FOR HEATHROW EXPANSION PAGE 41

44 HEATHROW: BUILDING CONNECTIONS TO NORTHERN IRELAND Northern Ireland at a glance 29 How could the Northern ireland benefit from the UK having new and frequent connections to more markets across the globe? In 2017, close to 700,000 air passengers travelled between Heathrow and Belfast. Northern Ireland attracted 203 Foreign Direct Investment projects between and , which generated over 13,000 new jobs. Northern Irish businesses exported 8.6 billion worth of goods in In , over 5,000 students from outside the UK enrolled in a Northern Irish higher education institution. Over 400,000 international visitors came to Northern Ireland in 2016, spending over 230 million while on their trips. Expanding Heathrow is estimated to create up to 5,000 new jobs 30 in Northern Ireland and up to 5 billion of economic benefits 31, according to independent analysis from Quod based on data from the Airports Commission. New and increased connections to Heathrow are expected to be operated by new carriers including Flybe and easyjet. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including six in Northern Ireland. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years Existing routes today Potential new air routes with expansion * * Potential new routes based on indicative route maps published by easyjet and Flybe CITY OF DERRY AIRPORT BELFAST INTERNATIONAL BELFAST CITY Heathrow expansion is absolutely vital to the future of the Northern Ireland economy. No ifs, no buts. Glyn Roberts, CEO Retail NI The boroughs of Mid and East Antrim, and Antrim and Newtownabbey have a very significant supply chain of innovative and smart businesses to bring to the table when it comes to the Heathrow expansion. Tracy Hegarty, Strategic Projects Manager Mid and East Antrim Borough Council PAGE 42 THE WORLD IS WAITING

45 THE WORLD IS WAITING FOR NORTHERN IRELAND Titanic Belfast Visitor Experience A SPOTLIGHT ON BELFAST With a mix of historical and contemporary architecture, revitalised Belfast has become one of the most popular tourism destinations in Europe. In March 2018, we went to Belfast to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Tourism is an increasingly important part of the Belfast economy. The five years to 2016 saw a greater than 10% increase in tourism-related employment and significant development of new hotels. Despite this, there is still some way to go to increase tourism to the level it could be, and improved air connectivity needs to play a major role in delivering increased levels. Expansion of Heathrow could play a vital role in allowing Belfast to compete with Dublin, as it would provide an opportunity to attract large numbers of tourists connecting from flights arriving into London from around the world. The cost of flights is a barrier to growing tourism. Air Passenger Duty is a significant driver of the costs of domestic air travel, accounting for more than 10% of the cost of the average return fare between Belfast and London. It was noted that HM Treasury is currently consulting on the impact this has on Northern Ireland and some argued for the abolition of Air Passenger Duty on domestic routes. When considering how to ensure that essential routes to regional airports were both viable (from the perspective of the airport and airline) and affordable (for customers) a question was raised as to whether the Government might push for the creation of more Public Service Obligation routes. Growing an export base requires better air connectivity. Northern Ireland is looking to grow its exporters in areas in which it has a developing specialism. For example, there is developing expertise in modern methods of construction, which Heathrow has already tapped into for previous developments such as Terminal 5. There is a need to look at the bigger picture of infrastructure investment. The benefits of improved air connectivity will only be realised in full if domestic transport infrastructure is improved to ensure the smooth transit of goods and people across the country. This requires a step change in domestic transport infrastructure investment. Please see our summary and priorities page overleaf to see how Heathrow is supporting Northern Ireland today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 43

46 HEATHROW: BUILDING CONNECTIONS TO NORTHERN IRELAND SUMMARY FOR NORTHERN IRELAND Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into Northern Ireland Today: Heathrow is already working to build the UK s international brand among international visitors, and has partnered with the GREAT Britain campaign to boost tourism to attractions all over Britain and Northern Ireland. Famous Northern Irish landmarks are already on display in Terminal 3 as part of Heathrow s GREAT campaign gallery. Tomorrow: Heathrow has pledged to promote the best of every region and nation in its terminals, which will help showcase Northern Ireland to millions of incoming tourists from around the world and drive tourism to the nation. This includes plans for a Northern Irish-themed gateroom in Terminal 3 to be installed later this year. Suggestion: Heathrow is a gateway to the UK. The airport should continue to work with Northern Ireland to maximise the benefits of expansion for Northern Ireland s tourism sector and promote the nation to its 78 million passengers. 2 Through expansion, Heathrow must provide more frequent and affordable connections to Northern Ireland Today: In January 2017, Heathrow introduced a 10 discount on departing domestic passenger charges which was increased by a further 50% in January 2018, to 15. This impacts flights to Belfast today, as well as potential new flights to Northern Ireland with expansion. Tomorrow: Expansion, with new and more frequent flights to Northern Ireland, could play a major role in allowing Belfast to compete for tourists. Heathrow is the first UK airport to support the principle of ring-fencing domestic slots, which could be made possible after Brexit. Ring-fencing could support regional route development and ensure the sustainability of domestic air connections to Heathrow, including flights to Northern Ireland. Suggestion: The cost of flights is a barrier to tourism and Air Passenger Duty is a significant driver of the costs of domestic air travel, accounting for more than 10% of the cost of the average return fare between Belfast and London. Heathrow should use its position to support campaigns to cut Air Passenger Duty and reduce the cost of connecting to Northern Ireland. 3 Through expansion, Heathrow must support Northern Irish exporters through improved cargo capacity and connections to the world Today: Last year Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners included Glastry Farm Ice Cream based in Newtonards, which will use the grant to look for new customers in the rapidly growing United Arab Emirates market. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow, increasing the number of domestic connections, and adding up to 40 new long-haul trading routes. This will help more Northern Irish businesses to export to the world, including the growing modern construction techniques industry. Suggestion: Heathrow could work with Northern Irish airports, the Government, Chambers of Commerce, and organisations like Invest NI to help SMEs understand more about how they can start exporting. Heathrow could work with the Chamber network to determine the key issues where advice and further assistance is required. 4 Through expansion, Heathrow must support, and be integrated into, the economic development of Northern Ireland Today: Northern Irish businesses already play an important part in Heathrow s supply chain they helped build Terminal 2 and continue to support the ongoing development of the airport. Heathrow Business Summit Northern Ireland will be held in June 2018 in Belfast, to help more Northern Irish SMEs gain contract opportunities with Heathrow today. Tomorrow: Heathrow is in the process of visiting and selecting four logistics hubs, off-site construction centres that will enable businesses across the country to get involved in expansion. Of the 65 long-listed sites still in the running, six are located in Northern Ireland. Suggestion: Through the Heathrow Skills Taskforce, Heathrow has started working with the Thames Tideway, HS2, Hinkley, and other big projects to look at skills requirements and discuss key areas such as automation, bridging the skills gap, and delivering infrastructure sustainably. This work should continue and outcomes be shared so wider stakeholders can use this to inform their own sub-regional planning. PAGE 44 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

47 THE WORLD IS WAITING FOR THE EAST MIDLANDS THE WORLD IS WAITING FOR THE EAST MIDLANDS Chatsworth House, Derbyshire

48 HEATHROW: CREATING OPPORTUNITIES FOR THE EAST MIDLANDS Today, manufacturing in the East Midlands accounts for 12.1% of the workforce, a higher proportion than in any English region or devolved nation 32. It has over two million people in employment and is home to more than 370,000 businesses. Its modern economy is influenced by its industrial past, when the region s cities were world leaders in manufacturing products like shoes and lace. The East Midlands is also the location for some of the country s most important current and future economic infrastructure. The M1 motorway runs through the region, connecting England s north and south. Sitting between Loughborough, Derby and Nottingham, East Midlands International is the UK s busiest pure cargo airport, transporting more than 320,000 tonnes of freight a year 33. The construction of HS2 which will see an East Midlands hub station being built at Toton will be transformational, creating an estimated 74,000 extra jobs for the region 34. The HS2 connection at Old Oak Common means that the East Midlands and Britain s hub airport will be closer than ever. And given the region s strong manufacturing and construction base, its businesses can play a major part in building Britain s new runway. We have a long-standing relationship with Heathrow. They are an enlightened client in their approach to delivering UK infrastructure projects through modern methods of construction, and can galvanise change in the wider supply chain. Emma Rigler, Advisor on Advanced Manufacturing Laing O Rourke With the construction and manufacturing sectors being particularly strong in the East Midlands, local businesses are keen to understand what contracts are available from expansion. Lindsay Wetton, Senior Programme Manager D2N2 LEP PAGE 46 THE WORLD IS WAITING

49 CASE STUDY THE WORLD IS WAITING FOR THE EAST MIDLANDS The Boots Enterprise Zone, Nottingham TURNER & TOWNSEND Turner & Townsend is a world-leading professional services firm specialising in delivering programme management, project management, cost management and advisory services to deliver major capital projects. Turner & Townsend advised on 115 billion of live aviation projects in the UK and globally in , providing expertise on the full life cycle of airport infrastructure, from terminal buildings and airside infrastructure to baggage systems. Turner & Townsend has supported Heathrow Airport for more than 20 years and has advised on major projects such as Terminal 2 and Terminal 5. Currently, the company is operating as a Programme Client Partner on the Heathrow expansion programme helping set the programme up for success. This includes forming the baseline, helping design the delivery model and structuring the supply chain and wider procurement strategy. At the heart of the delivery model and procurement strategy are Heathrow s logistics hubs and Heathrow s Business Summit agenda. These will create a step-change in how major projects are delivered: providing jobs, opportunities for SMEs and spreading the benefits of expansion across the UK, including the Midlands. Turner & Townsend s team is made up of hand-picked professionals from across the UK and wider global business. The success of Heathrow s expansion programme is a priority for Turner & Townsend. The company is a British success story, which has benefited from steady growth across the UK, through supporting local programmes and supply chains. A UK headquartered company, Turner & Townsend has grown to more than 100 offices globally and is actively exporting its knowledge and capability developed in the UK to global markets. The company has ambitious plans for continued growth but is reliant on having direct access to markets that are planning major investments. Connectivity to major cities, including those within Asia and Latin America, are fundamental for UK organisations such as Turner & Townsend which compete within a global supply chain. Turner & Townsend is proud of its long standing relationship with Heathrow. Its ambitious expansion programme will address current airport capacity constraints, contribute to the development of a skilled nationwide supply chain, give a shot in the arm to Britain s construction industry and is an investment in the UK economy. IT S TIME FOR HEATHROW EXPANSION PAGE 47

50 HEATHROW: CREATING OPPORTUNITIES FOR THE EAST MIDLANDS The East Midlands at a glance 35 How could the East Midlands benefit from the UK having new and frequent connections to more markets across the globe? The region attracted 344 Foreign Direct Investment projects between and , which generated over 14,000 new jobs billion worth of goods was exported from the East Midlands in 2017, with the region s top three goods exporting destinations being France, Germany and the USA. International students off-campus expenditure totals 353 million in the East Midlands, with spending supporting 3,093 jobs in the region. 1.3 million international visitors came to the East Midlands in 2016, spending over 480 million. Expanding Heathrow is estimated to create up to 9,800 new jobs 36 in the East Midlands and up to 10 billion of economic benefits 37 to the region, according to independent analysis from Quod based on data from the Airports Commission. HS2 will provide faster routes to Heathrow from the Midlands with journey times from Leicester and Nottingham falling to 1 hour 40 minutes. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including five in the East Midlands. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years NOTTINGHAM EAST MIDLANDS PAGE 48 THE WORLD IS WAITING

51 THE WORLD IS WAITING FOR THE EAST MIDLANDS Office block, Nottingham A SPOTLIGHT ON NOTTINGHAM Set right in the heart of the UK, Nottingham is an exciting, fast-paced city set against the backdrop of a rich cultural history. In March 2018, we went to Nottingham to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Improved transport connectivity can drive future growth. The arrival of HS2 will boost the East Midlands economy and significantly cut journey times to Heathrow. Attendees noted that the region s other transport connectivity must also be improved, including the Midland Mainline, in order to maximise the full benefits of Heathrow expansion. Heathrow expansion can cultivate new ways of working. With its estimated 14 billion cost, the scale of the expansion project has the potential to foster collaboration within construction supply chains, where in the past industry relationships have been adversarial. Equally, major economic benefits could arise from a Heathrow logistics hub being located in the region. Local SMEs can build their capability and profile from Heathrow expansion. The expansion project presents huge opportunities for businesses to supply one of the largest infrastructure projects in Europe. To harness these opportunities requires contracts that are easy to access and transparent, so that businesses can see where work is available and how they can get involved. Building relationships with local SMEs is important. Last year s Heathrow Business Summit in Derby was a success, and this type of event should continue to showcase the role that SMEs can play in delivering expansion. Heathrow and the East Midlands will benefit from the well-planned delivery of big infrastructure. Consideration has to be given to how several massive infrastructure projects can be effectively delivered at the same time. For example, the skills needed to service the building of Hinkley Point and the expansion of Heathrow have implications for construction projects all over the country. Please see our summary and priorities page shown overleaf to see how Heathrow is supporting the East Midlands today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 49

52 HEATHROW: CREATING OPPORTUNITIES FOR THE EAST MIDLANDS SUMMARY FOR EAST MIDLANDS Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must provide more frequent and affordable connections to the East Midlands Today: Heathrow is working with the HS2 project to create a seamless passenger interchange at Old Oak Common, making it quicker and easier for passengers travelling from the Midlands to connect onto the Elizabeth Line for their direct service to Heathrow. Tomorrow: Heathrow is committed to continuing the conversation of how the benefits of expansion can be maximised for the whole of the UK. Connectivity will be a key focus for the East Midlands, especially as plans for HS2 and the Midlands hub at Toton progress. Suggestion: It should be as easy as possible for passengers to get between the Midlands Hub at Toton and Heathrow. Heathrow and the East Midlands could work together to explore a simplified booking process for example, looking at how the full journey to Toton, to Heathrow, and onto a flight could be booked simply and potentially all at once. 2 Through expansion, Heathrow must support and be integrated into the economic development of the East Midlands Today: Heathrow is expanding its successful Business Summit programme, which will build up to have one event in every region every year during the construction phase of expansion. The first Midlands event took place last year in Derby with the East Midlands Chamber of Commerce, and was a great success. Tomorrow: Heathrow is working with Tier 1 suppliers to develop its supply chain strategy for expansion, to boost collaborative working and ensure that businesses of all sizes across the UK can get involved with the project. Part of this process is Heathrow s search for logistics hubs out of the 65 long-listed sites still in the running, five are in the East Midlands. Suggestion: Attendees at the East Midlands roundtable suggested that Heathrow could explore collaborating with other organisations to create a single portal for new contract opportunities enabling SMEs to easily access potential contracts with major infrastructure projects. In addition, through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in the East Midlands to help inform and enhance their own plans. 3 Through expansion, Heathrow must support the East Midlands exporters through improved cargo capacity and connections to the world Today: In 2017 Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners included Nottingham s Urban Worm which has used its grant to travel to Europe to continue research into large scale vermiculture technology. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the East Midlands trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help ease exporting from Heathrow. For example, by looking ways to improve freight processing around the airport, and working with the Chambers to look at more ways to provide advice and support to encourage SMEs to start exporting. 4 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the East Midlands Today: Through its 9-point connectivity plan, Heathrow is working to help deliver more affordable, viable and sustainable domestic connections that will boost international tourism and Foreign Direct Investment to every region, including the East Midlands. Tomorrow: Heathrow has pledged to promote the best of the UK s regions and nations in its terminals, which will help showcase the Midlands offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, helping businesses get out to the world and bring tourism in. Heathrow could work with Chambers of Commerce and organisations such as Invest in Nottingham to make sure connections from Heathrow to Nottingham, Leicester, Derby, and other key areas are made as simple for passengers as possible. PAGE 50 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

53 THE WORLD IS WAITING FOR THE EAST OF ENGLAND THE WORLD IS WAITING FOR THE EAST OF ENGLAND Punts on the River Cam, Cambridge

54 HEATHROW: AMPLIFYING THE SUCCESS OF THE EAST OF ENGLAND The East of England has significant exports of both goods and services 38, a major energy hub on the east coast, world-class expertise in advanced engineering manufacturing capabilities and a leading life science and agri-tech cluster 39. As a result, the East of England is one of only three regions alongside London and the South East that contributes more to the public finances than it receives. This is all supported by a global strength in education, which attracts students and research talent from around the world to work alongside innovative and growing businesses. The potential for future growth is also clear, with plans for 57,000 more jobs and 5,300 new businesses by 2026 in Norfolk alone 40. As an economic success story, the East of England is ready to take advantage of the growth opportunities brought about by Heathrow expansion. The region s advanced manufacturers, world-class universities and significant construction and manufacturing supply chains could all benefit from the new runway. A major modern airport runs on technology and IT infrastructure, and our region is a leader in these areas. We have the ability and the innovation to support Heathrow expansion. Helen Lewis, Director Research and Innovation Division University of EAst Anglia Businesses in Norfolk and the East of England are thriving. But we can t take anything for granted and upgrading our infrastructure is crucial if we are to fulfil our economic potential. Heathrow expansion is key part of this and will undoubtedly support the growth of our region. Chris Sargisson, Chief Executive Norfolk Chamber of Commerce PAGE 52 THE WORLD IS WAITING

55 THE WORLD IS WAITING FOR THE EAST OF ENGLAND Students at University of East Anglia, Norwich CASE STUDY UNIVERSITY OF EAST ANGLIA (UAE) UEA is one of the UK s top 15 universities, one of Europe s top 100 universities and in the world s top 100 universities for research excellence. The university directly employs close to 4,000 people and contributes well over 800 million to the UK economy. Around 500 million of that is within the boundaries of the New Anglia LEP. Its success relies on attracting international talent, in terms of both the students who attend UEA (around one in four of its 17,000 students are international students) and its teaching staff (including staff from India, China, Brazil, South Korea, Congo and Japan). With such a global reach and impact, UEA relies on world class air connectivity for many of its staff and students to arrive in the UK. As such, Heathrow expansion provides an opportunity to improve the ease with which international talent can travel to and from the UEA. As well as the potential export benefits to the UK education sector, Heathrow expansion also has the potential to develop skills and partnerships between research institutions (including UEA) and businesses. A key part of this will be ensuring that these partnerships are leveraged to ensure that the right skills are available to the major infrastructure investments being carried out across the UK. Doing so could provide a skills and productivity legacy for the whole of the UK. IT S TIME FOR HEATHROW EXPANSION PAGE 53

56 HEATHROW: AMPLIFYING THE SUCCESS OF THE EAST OF ENGLAND The East of England at a glance 41 How could the East of England benefit from the UK having new and frequent connections to more markets across the globe? The East of England attracted 511 Foreign Direct Investment projects between and , which generated over 17,000 new jobs billion worth of goods was exported from the East of England in 2017, with the region s top three goods exporting destinations being the USA, Germany and Belgium. International students off-campus expenditure is 368 million in the East of England, with spending supporting over 3,000 jobs in the region. 2.4 million international visitors came to the East of England in 2016, spending over 850 million. Expanding Heathrow is estimated to create up to 12,900 new jobs 42 in the East of England and up to 15 billion of economic benefits 43 to the region, according to independent analysis from Quod based on data from the Airports Commission. Crossrail services will provide a 75 minute journey time from Shenfield to Heathrow. Heathrow s logistics hub programme has the potential to benefit local businesses 65 long-listed sites are still in the running to be the final four hubs, including two in the East of England. In April 2018 Heathrow s Business Summit in Colchester welcomed businesses across the East of England to meet and build relationships with some of the airport s largest suppliers. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years Existing routes today Potential new air routes with expansion * * Potential new routes based on indicative route maps published by easyjet and Flybe NORWICH Our message to Heathrow is that this region has got the skills to help with expansion. We have very happy, very clever, very motivated people here. Attendee at 2018 Norfolk National Conversation event PAGE 54 THE WORLD IS WAITING

57 THE WORLD IS WAITING FOR THE EAST OF ENGLAND The Wellcome Genome Campus, Hinxton, Cambridgeshire A SPOTLIGHT ON NORWICH Historically one of the largest and most significant UK cities in medieval times, today Norwich is a unique blend of wonders old and new. In March 2018, we went to Norwich to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Heathrow expansion could support existing economic clusters. This could include pushing emerging thinking to invest in East West Rail and the Oxford to Cambridge Expressway. Businesses and representative groups are committed to coming together to discuss plans to take this forward and present Heathrow with details of how the region could support its plans. Heathrow expansion could create new economic clusters. Improved infrastructure could play a role in ensuring that Heathrow s plans to create logistics hubs lead to the long-term development of clusters around which businesses could locate, build the UK s skills base and attract global talent. There are opportunities to further develop the East of England s air connections. A previous route between Heathrow and Norwich Airport has ended as a consequence of capacity constraints at Heathrow. Expansion could provide an opportunity to reinstate the route, and attendees want this to be in addition to the existing strong route between Norwich and Schiphol. Heathrow expansion could play a positive role in making the case for more regional infrastructure development for example, the need to improve connections between feeder airports for the UK s hub airport. In addition, there are several existing regional projects that have an interest in expansion. For instance, three of the country s largest ports at Felixstowe, London Gateway and Harwich have growth plans. Air Passenger Duty is a barrier to domestic connectivity. The disproportionate impact of Air Passenger Duty on domestic routes is a factor in driving up the cost of domestic flights, with knock-on impacts on the relative attractiveness of using Heathrow and Schiphol as hubs. Please see our summary and priorities page overleaf to see how Heathrow is supporting the East of England today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 55

58 HEATHROW: AMPLIFYING THE SUCCESS OF THE EAST OF ENGLAND SUMMARY FOR EAST OF ENGLAND Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must support and be integrated into the economic development of the East of England Today: Heathrow is expanding its successful Business Summit programme for 2018, connecting SMEs across the country to some of its largest suppliers. Business Summit Colchester was held in spring 2018 and was a great success with an almost full appointment schedule throughout the day. Tomorrow: Heathrow is currently visiting and selecting four logistics hubs for expansion off-site centres for pre-assembly and consolidation. Of the 65 long-listed sites still in the running, two are located in the East of England. Heathrow is also committed to continuing the conversation of how the benefits of expansion can be maximised for the UK. A particular focus for the East of England will be the possible development of the East- West Rail and Oxford-Cambridge Expressway. Suggestion: Heathrow could work with businesses, Chambers and local authorities to maximise awareness of supply chain opportunities and how to engage with its procurement process including the possibility of collaborating with other organisations to create a single portal for new opportunities. 2 Through expansion, Heathrow must provide more frequent and affordable connections to the East of England Today: The announcement that six Crossrail trains an hour will run into Heathrow from December 2019 linking the airport directly to Liverpool Street in 30 minutes will make it easier and quicker than ever for passengers and businesses from the East of England to get to Heathrow, and onto international destinations. Tomorrow: Expansion opens up the possibility of new flights between Heathrow and currently unserved airports around the UK Norwich, for example, is named by Flybe as a potential new route which they would explore operating from an expanded Heathrow. Heathrow has also pledged a 10 million Route Development Fund to support the introduction of new UK routes with expansion. Suggestion: Connections to Liverpool Street are hugely important to the East of England and campaign such as Norwich in 90 show that improving journey times is a priority for the area s businesses and communities. The arrival of Crossrail could be a catalyst for Heathrow to work more closely with the region s stakeholders, and providing the estimated benefits for the region from Heathrow expansion could perhaps help further strengthen their campaign for improved transport services. 3 Through expansion, Heathrow must support exporters from the East of England through improved cargo capacity and connections to the rest of the world Today: In 2017 Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners included Love Beets based in Ely, who used the grant to travel to the annual trade show Asia Fruit Logistica, held in Hong Kong. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the East of England trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help ease exporting from Heathrow. For example, by looking at ways to improve freight processing around the airport, and working with the Chambers to look at more ways to provide advice and support to encourage SMEs to start exporting. 4 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the East of England Today: Through its 9-point plan to Bring Britain Closer, Heathrow is working to help deliver more affordable, viable and sustainable domestic connections that will boost international tourism to every region, including the East of England. Tomorrow: Heathrow has pledged to promote the best of the UK s regions and nations in its terminals, which will help showcase the East of England s offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, helping businesses get out to the world and bring tourism in. Heathrow could work with Chambers of Commerce and East of England organisations to make sure connections from Heathrow to the region are made as simple as possible for tourists and investors visiting the area. PAGE 56 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

59 THE WORLD IS WAITING FOR THE WEST MIDLANDS THE WORLD IS WAITING FOR THE WEST MIDLANDS Selfridges, The Bullring, Birmingham

60 HEATHROW: CONNECTING THE WEST MIDLANDS The West Midlands is world-renowned for its advanced manufacturing and engineering sectors, which are at the global forefront of technological innovation 44. Building on this success, other innovative sectors like life sciences and digital are growing in importance to the region s economy and are increasingly providing local employment opportunities 45. A key reason for the West Midlands economic success is its connections to the rest of the country. The M5 and M6 motorways and the West Coast Mainline rail link facilitate the movement of people and goods across the whole of the UK 46. The development of HS2 will make the region s connectivity even stronger, reducing the time taken to travel between London and Solihull to just 38 minutes. The West Midlands is proud to be home to one of the UK s major airports; Birmingham Airport is growing its own long-haul network, recently announcing new routes to Amritsar and Toronto. As the UK s only hub airport, Heathrow complements Birmingham s direct connections by providing frequent long-haul links to emerging markets and business destinations which aren t served by UK point-topoint airports. With an economy built upon its domestic and international connections, the West Midlands will grow even stronger with the new global links created by Heathrow expansion. Now more than ever, we need connections through Heathrow for exporting to new markets and to attract investment. Monique Seth, Partner Congital PAGE 58 THE WORLD IS WAITING

61 THE WORLD IS WAITING FOR THE WEST MIDLANDS M6 motorway, West Midlands CASE STUDY GLOBAL FREIGHT SERVICES Global Freight Services (GFS), based in Shropshire, is a freight forwarder with customers both in the UK and abroad. It transports goods from one place to another, whether by sea, air, rail, road or courier. Its other services include negotiating customs formalities and assisting customers with their insurance and storage requirements. The company has sent simulators to Bangladesh, glass jars to Bolivia and drilling equipment to Canada. Air freight accounts for 13% of the GFS s turnover, and it uses Heathrow, Gatwick, Manchester, Birmingham and Stansted. GFS regards Heathrow as the gateway between the world and Europe, because it has flights going more frequently to more destinations than any other UK airport. A fundamental benefit of Heathrow is its direct routes it means that there are no delays at other hubs once the freight is en route, and the freight is subsequently safer and more secure. Heathrow is not always the preferred option of GFS, however. Sometimes the haulage costs to deliver freight from another part of the UK to the airport can be prohibitive. Equally, over subscription can mean that there is no room for freight on the flight it is booked on and the busy nature of Heathrow means that it can take longer to get freight on an aircraft. GFS had a number of suggestions on what Heathrow and the Government could do to smooth the process of sending freight through the airport. These suggestions included: faster operations by airlines; and, better and faster operations by HM Revenue and Customs at Heathrow. IT S TIME FOR HEATHROW EXPANSION PAGE 59

62 HEATHROW: CONNECTING THE WEST MIDLANDS The West Midlands at a glance 47 How could the West Midlands benefit from the UK having new and frequent connections to more markets across the globe? Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years The West Midlands attracted 731 Foreign Direct Investment projects between and , which generated just under 43,000 new jobs. The West Midlands accounts for 10% of the UK s goods exports, with its top export partners being the USA, China and Germany. International students off-campus expenditure in West Midlands totals almost 500 million a year. Nearly 4,000 jobs in the region are supported by this spending. 2.2 million international visitors came to the West Midlands in 2016, spending over 850 million whilst on their trips. Expanding Heathrow is estimated to create up to 12,000 new jobs 48 in the West Midlands and up to 13 billion of economic benefit 49, according to independent analysis from Quod based on data from the Airports Commission. BIRMINGHAM HS2 rail will provide fast routes to Heathrow from the Midlands with the journey time from Birmingham halving to 1 hour 4 minutes. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including six in the West Midlands. We need to keep up to date with the use of technology in learning environments for our future workforce. This is why the 10,000 apprenticeships arising from Heathrow expansion is important. Paul Hinkins, Chair Telford and Wrekin Business Board PAGE 60 THE WORLD IS WAITING

63 THE WORLD IS WAITING FOR THE WEST MIDLANDS Jaguar Land Rover, Solihull A SPOTLIGHT ON SHROPSHIRE Shropshire is a county centred on 5 towns, Shrewsbury, Telford, Oswestry, Bridgnorth, and Ludlow. The county is a home to a UNESCO World Heritage Site with the industrial birthplace in Ironbridge, the Shropshire Hills Area of Outstanding Natural Beauty, as well as picturesque market towns and famous natural landmarks. In March 2018, we went to Shropshire to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Heathrow expansion will complement the area s current economic strategies. An example is The Marches LEP s joint freight strategy with Mid-Wales, which makes recommendations on how to improve the experience of businesses moving freight within and through the region. Heathrow expansion will complement plans to enhance local skills. Shropshire needs to respond to the implications of increased automation in its manufacturers and the area s ageing workforce. In this context, the 10,000 apprenticeships linked to Heathrow expansion were of particular interest. A growing economy can be catalysed by big infrastructure projects. The Shropshire economy is on the up, with a buoyant labour market and increasing Foreign Direct Investment. Heathrow is recognised as being important to Shropshire s economic success. Tourist passengers arrive at the airport and go on to visit the rural parts of the county, and local companies use the airport to sell into markets all over the world. And, as expansion gets under way, there is an opportunity for Shropshire s SMEs to be suppliers to the project. The prospect of new transport connections and greater market access is good for local businesses. The linkage created by the HS2 corridor from Birmingham to London will support local professional services firms to explore new markets. An increased number of long-haul routes from an expanded Heathrow will mean that Shropshire s exporters can get to more destinations more easily. Please see our summary and priorities page overleaf to see how Heathrow is supporting the West Midlands today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 61

64 HEATHROW: CONNECTING THE WEST MIDLANDS SUMMARY FOR WEST MIDLANDS Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must support and be integrated into the economic development of the West Midlands Today: Heathrow is expanding its successful Business Summit programme, which enables businesses in every region to connect with some of Heathrow s biggest suppliers and explore contract opportunities. Heathrow Business Summit Birmingham will take place in early November 2018, and is free to attend for all SMEs in the West Midlands. Tomorrow: Heathrow is committed to continuing the conversation of how expansion can benefit the West Midlands. How the project can complement local economic strategies in the West Midlands will be a key focus. Furthermore, to build its new runway, Heathrow is committed to off-site manufacture and pre-assembly in centres across the UK. Of the 65 long-listed sites in the running to become one of Heathrow s four logistics hubs, six are in the West Midlands. Suggestion: Heathrow could provide local authorities and LEPs with estimated regional benefits from the project, to aid their discussions with central government agencies and other stakeholders about the benefits and potential of improving local road networks. In addition, through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in the West Midlands. 2 Through expansion, Heathrow must provide more frequent and affordable connections to the West Midlands Today: Heathrow is working with the HS2 project to create a seamless passenger interchange at Old Oak Common, making it quicker and easier for passengers travelling from the Midlands to connect onto the Elizabeth Line for their direct service to Heathrow. Tomorrow: Heathrow is committed to continuing the conversation of how the benefits of expansion can be maximised for the whole of the UK. For the West Midlands, connectivity will be a key focus, particularly as plans for HS2 progress. Suggestion: It should be as easy as possible for passengers to get between the HS2 station at Birmingham and Heathrow. Heathrow and the West Midlands could work together to explore a simplified booking process for journeys to Birmingham, to Heathrow, and onto a flight. Simple, frequent connections will boost tourism and investment to the region. 3 Through expansion, Heathrow must support exporters from the West Midlands through improved cargo capacity and connections to the rest of the world Today: The new HS2 corridor from Birmingham to London will enable more businesses across the West Midlands to reach Heathrow and export products through the airport to the world. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the West Midlands trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help ease exporting from Heathrow. For example, Heathrow could look at more ways to work with HMRC to improve freight processing in and around the airport, and work with Chambers to provide more advice and guidance, where required, to encourage SMEs to start exporting. 4 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the West Midlands Today: Shropshire s tourism and leisure sector is booming, and connectivity is key to its continued success. Through its 9-point connectivity plan, Heathrow is working to deliver better domestic connections and transport links that will boost international tourism to every region, including the West Midlands. Tomorrow: Heathrow has pledged to promote the UK s regions and nations in its terminals, which will help showcase the West Midlands offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, helping tourists reach the West Midlands, and getting the goods and services of West Midland businesses out to the world. Heathrow could work more closely with West Midlands organisations to explore how to maximise the benefits of expansion for the West Midlands tourism sector and boost inward investment further. PAGE 62 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

65 THE WORLD IS WAITING FOR THE THE WORLD IS WAITING FOR THE NORTH WEST NORTH WEST THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION PAGE 63 The Halo Panopticon, Top o Slate, Near Rossendale, Lancashire

66 HEATHROW: LINKING TO THE NORTHERN POWERHOUSE IN THE NORTH WEST The North West is a key part of England s Northern Powerhouse. It is home to 530,000 businesses and, by value, it is the source of close to half of the goods exports and over 80% of service exports of the Northern Powerhouse zone 50. While this economic strength is often considered through the lens of its two major economic centres Greater Manchester and the Liverpool City Region there are specialisms and expertise across the entire North West. As such, it boasts output per head that is the highest of any region in the North of England and Midlands, and an unemployment rate that is below the UK average 51. The region is also home to Manchester Airport, a major international airport with growing long haul connectivity, which has a strong direct connection to Heathrow today. Expansion will create the opportunity for new domestic routes from Heathrow, such as a potential new route to Liverpool John Lennon Airport, which is cut off from the UK s hub today. Heathrow s role as a hub is to complement the growth of other airports such as Liverpool and Manchester, by providing the frequent long-haul business connections to key markets which aren t served by other UK airports. Lancashire has a strong aerospace sector and there is huge growth potential in global aerospace markets, especially in China and India. Heathrow expansion will help us compete. Ian Barton, Head of Strategy and Investment Planning BAE Systems Heathrow expansion would facilitate more global trade for UK businesses and free up capacity for regional airports. For the North West economy to take full advantage, there needs to be better North- South connectivity by road and rail. Michael Green, Cabinet Member for Economic Development, Environment and Planning, Lancashire County Council PAGE 64 THE WORLD IS WAITING

67 THE WORLD IS WAITING FOR THE NORTH WEST CASE STUDY SCANLITE Scanlite is a UK-leading supplier and manufacturer of LED Displays, headquartered in Blackpool. Formed in 1980, it has now performed over 40,000 installations and established itself as a market leader in LED display design, manufacture and installation. It boasts clients across the world, including a number of international airports, and prides itself on the fact that all its products are built, designed and tested in Blackpool. An immediate benefit of Heathrow expansion is the role the airport can play in acting as a shop window for UK businesses looking to tap into markets across the globe. For example, the seven 14m x 7m LED display screens that Scanlite installed in Heathrow s Terminal 5 are passed by 32 million passengers each year, providing a clear example of Scanlite s expertise and value before potential customers even step into their showroom. Expansion provides the opportunity for Heathrow to showcase UK products and firms to more passengers and engage with more businesses arriving from across the globe. One challenge in making the most of this is the relatively limited surface transport infrastructure across the UK, which makes the logistics of moving products from Blackpool to other parts of the country challenging. Here, Heathrow expansion could play a role in making the case to Government for better surface transport links to improve the ease with which Scanlite and other businesses can supply customers both across the UK and internationally via the UK s hub airport. IT S TIME FOR HEATHROW EXPANSION PAGE 65

68 HEATHROW: LINKING TO THE NORTHERN POWERHOUSE IN THE NORTH WEST The North West at a glance 52 How could the North West benefit from the UK having new and frequent connections to more markets across the globe? In 2017, over 660,000 passengers travelled the route between Manchester Airport and Heathrow. The region attracted 687 Foreign Direct Investment projects between and , which generated over 30,000 new jobs billion worth of goods was exported from the North West in 2017, with the region s top three goods exporting destinations being the USA, Germany and Ireland. International students off-campus expenditure is 458 million in the North West, with spending supporting almost 4,000 jobs in the region. There were 2.8 million international visitors to the North West in 2016, who spent over 1 billion on their trips. Expanding Heathrow is estimated to create up to 15,300 new jobs 53 in the North West and up to 16 billion of economic benefits 54 to the region, according to independent analysis from Quod based on data from the Airports Commission. HS2 will provide fast routes to London from Crewe, reducing journey times to the airport by over 1 hour 30 minutes. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including eight in the North West. Key: ISLE OF MAN Logistics hubs long-listed locations Business Summit locations in the last 3 years Existing routes today Potential new air routes with expansion * * Potential new routes based on indicative route maps published by easyjet and Flybe CARLISLE LAKE DISTRICT LIVERPOOL MANCHESTER AIRPORT MANCHESTER Heathrow expansion is important for businesses up and down the supply chain across the North West. Gary Walters, Business Development Director Parity Aviation PAGE 66 THE WORLD IS WAITING

69 THE WORLD IS WAITING FOR THE NORTH WEST Parity Aviation, Birkenhead, Merseyside A SPOTLIGHT ON BLACKPOOL A world-famous seaside resort and the most populous town in Lancashire, Blackpool remains one of the most significant tourist spots in the UK. In April 2018, we went to Blackpool to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Heathrow expansion can help to re-establish air links to the North West. There is a strong connection between Manchester Airport and Heathrow today, but a route between Heathrow and Liverpool Airport was closed because of capacity constraints at Heathrow. Liverpool Airport could gain this link back with new capacity from Heathrow expansion it s been named as one of the potential new routes that Flybe would look to operate. Local businesses can benefit from being part of the Heathrow supply chain. Businesses in the North West received a major boost from being in the 2012 Olympics supply chain, and it was suggested that Heathrow could learn from the 2012 Olympics experience. That said, many businesses in the North West did not know enough about how to engage with, and supply into, Heathrow. Events such as the Heathrow Business Summit, which has been held in Liverpool and Manchester, are helpful, but other ways of informing businesses could be explored. The region s tourist industry can benefit from Heathrow expansion. In addition to its major cities, the North West hosts part or all of three national parks and three Areas of Outstanding Natural Beauty. It is vital that businesses in the North West and Heathrow work together to make the case for investment in regional and national infrastructure that would benefit the regional tourist trade. Planned infrastructure investment can complement Heathrow expansion and improve growth prospects. These growth prospects are currently hampered by limited connections to the South of England, which restrict the ability to supply goods and services to the rest of the UK and the ability to access global markets. In this context, the connections that HS2 and Northern Powerhouse Rail will bring will have strong economic benefits, although attendees noted that the future timelines of these investments are still uncertain. HS2 will connect to Old Oak Common, which will be a short direct journey away from Heathrow on the Elizabeth Line. Please see our summary and priorities page overleaf to see how Heathrow is supporting the North West today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 67

70 HEATHROW: LINKING TO THE NORTHERN POWERHOUSE SUMMARY FOR NORTH WEST Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1. Through expansion, Heathrow must provide more frequent and affordable connections to the North West Today: In January 2017, Heathrow introduced a 10 discount on departing domestic passenger charges which was increased by a further 50% in January 2018 to 15, helping to strengthen Heathrow s existing route to Manchester. Heathrow is also campaigning to abolish domestic Air Passenger Duty to further boost competition and choice for customers. Tomorrow: Expansion means the potential for new flights to currently unserved UK airports, which could mean a new route to Liverpool John Lennon Airport currently cut off from the UK s hub. Heathrow has committed to a 10 million Route Development Fund to support new UK routes from an expanded Heathrow. Suggestion: As the UK s largest airport and the only hub, Heathrow could do more to advocate for initiatives to make connections to North West more affordable, starting with abolishment of domestic Air Passenger Duty and ring-fencing of slots for domestic routes. 2. Through expansion, Heathrow must support and be integrated into the economic development of the North West Today: Heathrow is expanding its successful Business Summit programme, which helps SMEs across the country connect with some of the airport s largest suppliers. The North West Summit is due to take place in Manchester in June 2018, and is free to attend for all North West SMEs. Tomorrow: Heathrow is committed to continuing the conversation of how the economic benefits of expansion can be maximised for the North West. Heathrow is setting up centres for pre-assembly and consolidation across the UK in order to build the new runway using a UK-wide supply chain. Of the 65 sites still in the running to be one of Heathrow s final four logistics hubs, four are in the North West. Suggestion: Heathrow could explore the possibility of collaborating with infrastructure projects to create a single, simplified portal for new opportunities for SMEs. In addition, through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in the North West. Heathrow could also explore new locations for future business summits around the region. 3. Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the North West Today: Heathrow is already working to build the UK s international brand among international visitors, and has partnered with GREAT Britain to boost tourism to attractions all over Britain, with hundreds of images of UK landmarks on display in our GREAT gallery in Terminal 3. Tomorrow: Heathrow has pledged to promote every region and nation, which will help showcase the North West s offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, helping to connect international tourists and investors with the North West, as well as getting the North West s goods out to the world. Heathrow could do more to maximise the benefits of expansion for the North West tourism sector and boost Foreign Direct Investment, for example by working with North West organisations to amplify their activity. 4. Through expansion, Heathrow must support British exporters through improved cargo capacity and connections to the North West Today: Through its 9-point connectivity plan, Heathrow is working to place itself at the heart of the UK transport network enabling businesses across the North West to connect to trade with the world, via Heathrow. It also launched a World of Opportunity grants programme to help businesses build their exporting capability, and the call for 2018 applications will be open shortly to all UK SMEs. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the North West trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help simplify exporting from Heathrow. For example, Heathrow could look at more ways to work with HMRC to improve freight processing in and around the airport, and work with Chambers to provide more advice and guidance, where required, to encourage SMEs to start exporting. PAGE 68 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

71 THE WORLD IS WAITING FOR THE THE WORLD IS WAITING FOR THE NORTH EAST NORTH EAST Saltburn cliff lifts and pier, Saltburn, Teesside

72 HEATHROW: STRENGTHENING INDUSTRY IN THE NORTH EAST The North East is building upon a broad industrial base. Strength in advanced manufacturing is evident from the local presence of globally important companies like Nissan in Sunderland, Caterpillar in Peterlee, and Siemens in Hebburn. The life sciences sector is growing in prominence, with a number of clusters being supported by the expertise within local universities 55. There is an increasing presence of digital tech firms; Middlesbrough for example has been named as one of the leading digital clusters in UK. The region s output growth in the computer programming and consultancy industries is the strongest of any devolved nation or English region 56. Good connectivity by air, rail, road and sea benefits the regional economy and the connections are improving. Newcastle International Airport, for example, is expected to almost double its passenger numbers between 2012 and Another example is the plans to improve road infrastructure, such as the investment being made to upgrade the A1 58. The North East s future growth will benefit from more of its businesses exploring overseas markets and from overseas investors coming to the region. Both will be bolstered by stronger international links by air, which Heathrow expansion will support. Heathrow enables Britain and the North East to compete on the global stage. Jacqui Miller, Board Director Miller International Heathrow expansion has massive potential for the North East. The region s smaller businesses have the opportunity to be suppliers to a massive infrastructure project. Jonathan Walker, Head of Policy and Campaigns North East Chamber of Commerce PAGE 70 THE WORLD IS WAITING

73 THE WORLD IS WAITING FOR THE NORTH EAST CASE STUDY HART DOOR SYSTEMS Founded in 1946 and still family-run today, Newcastleupon-Tyne s Hart Doors manufactures high performance door systems such as fire-resistant shutters. It supplies highly sophisticated products to a wide variety of projects, ranging from clients in the nuclear industry to customers in the pharmaceuticals sector. Hart Doors has had a relationship with Heathrow for over 30 years, which has included work on some of the airport s biggest investments. For example, Hart Doors engineered, built and helped to install over 50 smoke and fire doors during the construction of the Terminal 5 building. Hart Doors has developed new products as a direct result of Heathrow s procurement ethos. In other words, a focus on quality has required Hart Doors to find innovative solutions to meet Heathrow s specific needs. The knock-on impact has been the development of new products that have subsequently been supplied to over 40 airports across the world. But Heathrow is not just a customer. Hart Doors also benefits from Heathrow s international routes bringing in customers from long-haul destinations, allowing sales into markets that otherwise would not have been possible. Because of this, Hart Doors firmly believes that if Heathrow falls behind then Britain falls behind. IT S TIME FOR HEATHROW EXPANSION PAGE 71

74 HEATHROW: STRENGTHENING INDUSTRY IN THE NORTH EAST The North East at a glance 59 How could the North East benefit from the UK having new and frequent connections to more markets across the globe? In 2017, over 490,000 passengers travelled the route between Newcastle Airport and Heathrow. The region attracted 300 Foreign Direct Investment projects between and , which generated over 15,000 new jobs. Just under 13 billion worth of goods was exported from the North East in 2017, with the region s top three goods exporting destinations being the Netherlands, Germany and USA. International students off-campus expenditure is 256 million in the North East, with spending supporting over 2,000 jobs in the region. Over 550,000 international visits were made to the North East in 2016, generating expenditure of over 400 million. Expanding Heathrow is estimated to create up to 5,100 new jobs 60 in the North East and up to 5 billion of economic benefit s61 to the region, according to independent analysis from Quod based on data from the Airports Commission. Expansion creates the potential for more frequent domestic flights to regional airports such as Newcastle, and could mean new routes from Heathrow to airports such as Durham Tees Valley, which was on Flybe s indicative route map. Heathrow s logistics hub programme holds potential for local businesses 65 long-listed sites are still in the running to be the final four hubs, including two in the North East. North East businesses are keen to help build Heathrow s new runway this year s Heathrow Business Summit North East was held in Middlesborough, where local SMEs spoke to Heathrow s largest suppliers about contract opportunities today and the procurement strategy for expansion. Key: Miller International, Cramlington, Northumberland Logistics hubs long-listed locations Business Summit locations in the last 3 years Existing routes today Potential new air routes with expansion * * Potential new routes based on indicative route maps published by easyjet and Flybe NEWCASTLE DURHAM TEES PAGE 72 THE WORLD IS WAITING

75 THE WORLD IS WAITING FOR THE NORTH EAST Millennium Bridge and SAGE, Gateshead A SPOTLIGHT ON NEWCASTLE Once a major ship-building and manufacturing site, Newcastle and its University have now become a major UK hub for business, arts and sciences. In April 2018, we went to Newcastle to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Newcastle Airport s direct links to Heathrow have had a significant impact on the region s economy. It was stressed that more can be done to increase the airport s positive impact on jobs and growth. For instance, the local transport network that serves the airport could be improved. Equally, the North East Chamber of Commerce has argued that Air Passenger Duty should be reformed to make the airport more competitive. The expansion project creates massive procurement opportunities. Small firms are integral to delivering expansion, and there is huge potential for the North East s business community to tap into the expansion-related expenditure. As a result, there is a big appetite for more information on how local SMEs can access procurement opportunities. Now is the time for potential SME suppliers to engage with Heathrow and its Tier 1 and Tier 2 supply chain should expansion get the final go-ahead in the coming months the project will move very quickly. A logistics hub in the North East could be a real boost to the local economy. There is an appetite to understand what criteria will be used to decide on the final locations of Heathrow s four logistics hubs. Local policymakers and the local business community need to collaborate on presenting a compelling case for building a logistics hub in the North East. Heathrow expansion could see significant investment in developing local and national skills. Heathrow s commitment to creating 5,000 additional apprenticeships via expansion is undoubtedly positive. With the ambition to use off-site and pre-assembly techniques to expand Heathrow, there is also the prospect of promoting construction careers as something other than working on-site in all-weather conditions. Expansion can help to create a skills legacy. Some local companies rely on migrant labour to meet their skills needs, but expansion creates the possibility of generating a pipeline of home-grown construction talent. Expansion also presents the opportunity to send the message to young people who are embarking on their careers that it is possible to live in the North East and work on major infrastructure projects in other parts of the country. Please see our summary and priorities page overleaf to see how Heathrow is supporting the North East today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 73

76 HEATHROW: SUPPORTING INDUSTRY IN THE NORTH EAST SUMMARY FOR THE NORTH EAST Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1. Through expansion, Heathrow must support and be integrated into the economic development of the North East Today: Heathrow is expanding its successful Business Summit programme, which connects SMEs across the UK with Heathrow s Tier 1 suppliers. The first Teesside Business Summit was held in Middlesbrough in May 2018 in partnership with North East Chamber, which welcomed SMEs from across the North East. Tomorrow: Heathrow is committed to continuing the conversation of how the benefits of expansion can be maximised for the North East. How expansion can help the development and retention of local talent will be a key area of focus and Heathrow could play a part. For example, a major part of Heathrow s plan for the construction phase of expansion is setting up four hubs around the UK for pre-assembly and consolidation of materials. Out of the 65 long-listed sites still in the running, two are in the North East. Suggestion: Heathrow could explore the possibility of collaborating with other organisations to create a single portal for new opportunities enabling SMEs to easily access contracts with major infrastructure projects. In addition, through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in the North East. 2. Through expansion, Heathrow must provide more frequent and affordable connections to the North East Today: In January 2017, Heathrow introduced a 10 discount on departing domestic passenger charges which was increased by a further 50% in January 2018 to 15, helping to strengthen the existing link to Newcastle Airport. Tomorrow: Expansion will mean the potential for more frequent domestic flights from Heathrow to airports such as Newcastle, as well as possible new routes to currently unserved airports like Durham Tees Valley. Suggestion: As the UK s largest airport and the only hub, Heathrow should do more to advocate for initiatives to make connections to the North East more affordable, starting with abolishment of domestic Air Passenger Duty and the ring-fencing for domestic slots to protect UK routes. 3. Through expansion, Heathrow must support exporters from the North East through improved cargo capacity and connections to the rest of the world Today: In 2017 Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Last year s winners included Billingham-based Tomlinson Hall & Co. and Micropore Technologies in Redcar. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the North East trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help ease exporting from Heathrow. For example, Heathrow could look at more ways to work with HMRC to improve freight processing in and around the airport, and work with Chambers to provide more advice and guidance, where required, to encourage SMEs to start exporting. 4. Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the North East Today: Through its 9-point connectivity plan, Heathrow is working to help deliver more affordable, viable and sustainable domestic connections that will boost international tourism to every region, including the North East. Heathrow is also working to help boost the international profile of the UK through its partnership with GREAT Britain campaign. Hundred of images of UK landmarks are in displayed in the GREAT gallery in Terminal 3, such as the Angel of the North. Tomorrow: Heathrow has pledged to promote the UK s regions and nations in our terminals, which will help showcase the North East s offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, bringing tourists and investors to the North East and helping the region s goods and services get out to the world. Heathrow could do more to promote what the North East has to offer, by working with organisations such as the Northern Tourism Alliance, to maximise benefits from Heathrow expansion. PAGE 74 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

77 THE WORLD IS WAITING FOR YORKSHIRE AND THE HUMBER THE WORLD IS WAITING FOR YORKSHIRE AND THE HUMBER York Minster, York

78 HEATHROW: HELPING YORKSHIRE AND THE HUMBER TO THRIVE Yorkshire and the Humber is home to 5.4 million people and 419,000 businesses 62. The region s economy is defined by its variety. Leeds City Region is a financial centre and is the location for the headquarters of three of the five largest building societies 63. Sheffield has a flourishing digital scene, with internet service provider Plusnet and software company WANdisco both having a presence in the city 64. The tourist offer continues to grow the increasing popularity of the Tour de Yorkshire cycling race and Hull being designated as UK City of Culture are just two of many examples. Yorkshire and the Humber is also establishing itself as a place where new technology and innovation is encouraged. Two national centres based at Sand Hutton have been funded to convert scientific agricultural innovation into commercial opportunities for the agri-food sector. A massive offshore wind farm will potentially be built at Dogger Bank. Drax power station based in Selby has undertaken the largest decarbonisation project in Europe 65. From finance to digital and from agriculture to tourism, Yorkshire and the Humber will continue to grow. Heathrow expansion is firmly part of the plan 11 sites in the region being looked at as a potential logistics hub location, more than in any other part of the UK. Expansion of the UK s hub will boost businesses across the Leeds City Region, by attracting investment and reaching key international markets from Yorkshire via our direct connection to Heathrow. David Laws, Chief Executive Leeds Bradford Airport I was pleased to contribute to Heathrow s National Conversation event in Doncaster. Alongside local business representatives, we discussed the benefits of expanding Britain s only hub airport for Doncaster and the wider region. Rt Hon Dame Rosie Winterton, DBE MP for Doncaster Central PAGE 76 THE WORLD IS WAITING

79 THE WORLD IS WAITING FOR YORKSHIRE AND THE HUMBER CASE STUDY DONCASTER RACECOURSE Doncaster Racecourse is one of the oldest centres for horse racing in Britain. It hosts 36 race fixtures every year and is home to the prestigious William Hill St Leger Festival. As well as being one of the leading tourist hotspots in the region, the racecourse is also a major venue for corporate events, conferences and exhibitions. Indeed, one of Heathrow s Business Summits is due to be hosted there in October. Doncaster Racecourse is investing and expanding. It will open a 154 bedroom Hilton Garden Inn hotel this summer, which is intended to attract business travellers and drive the residential conference business. Heathrow Airport can help Doncaster Racecourse to grow. Race horse owners and trainers not to mention the horses themselves use Doncaster s air connectivity to go to and from fixtures. Better connectivity means more opportunity and Doncaster Sheffield was named as a potential new route from an expanded Heathrow by Flybe, which would connect the area to hundreds of global destinations. IT S TIME FOR HEATHROW EXPANSION PAGE 77

80 HEATHROW: HELPING YORKSHIRE AND THE HUMBER TO THRIVE Yorkshire and the Humber at a glance 66 The following statistics are examples of why Yorkshire and the Humber could benefit from the UK having new and frequent connections to more markets across the globe: Over 160,000 passengers travelled on the Leeds Bradford to Heathrow route in Yorkshire and the Humber attracted 491 Foreign Direct Investment projects between and , which generated over 16,000 new jobs billion worth of goods was exported from Yorkshire and the Humber in 2017, with the region s top three goods exporting destinations being USA, Netherlands and Germany. International students off-campus expenditure is 429 million in Yorkshire and the Humber, with spending supporting 3,594 jobs in the region. 1.4 million international visitors came to Yorkshire and the Humber in 2016, spending over 500 million. Expanding Heathrow is estimated to create up to 11,200 new jobs 67 in Yorkshire and the Humber and up to 12 billion of economic benefits 68 to the region, according to independent analysis from Quod based on data from the Airports Commission. Potential for more frequent domestic flights to regional airport such as Leeds Bradford Airport. From Yorkshire, HS2 will provide fast routes to Heathrow with the journey time from Sheffield to the airport falling to 1 hour 39 minutes. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including 11 in Yorkshire and the Humber. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years Existing routes today Potential new air routes with expansion * * Potential new routes based on indicative route maps published by easyjet and Flybe LEEDS-BRADFORD LEEDS SHEFFIELD YORK DONCASTER- SHEFFIELD HUMBERSIDE There is a focus on developing high-quality skills in the area. We have a plan to deliver this locally but national infrastructure schemes such as Heathrow expansion can enhance our strategies to create new opportunities for businesses, communities and young people. Dan Fell, CEO Doncaster Chamber of Commerce PAGE 78 THE WORLD IS WAITING

81 THE WORLD IS WAITING FOR YORKSHIRE AND THE HUMBER Numill Tooling Solutions, Sheffield, Yorkshire A SPOTLIGHT ON DONCASTER An industrial hub between the late 18th and 20th centuries, Doncaster s strong transportation links and infrastructure have enabled the town to connect to travel and trade around the UK, and to thrive. In May 2018, we went to Doncaster to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: The region has strategic assets that can complement Heathrow expansion. The region has strong connectivity, a growing housing stock and a solid skills base. These attributes are supported by assets such as Doncaster Sheffield Airport and the East Coast Mainline rail route. For instance, it can be quicker to get to London on the train from Doncaster than it is to get across London on public transport. The arrival of HS2 will add to these assets. Heathrow expansion can help to create a skills legacy in the region. There is a real opportunity to mould course content at local training providers to support the needs of major projects. For instance, schools, colleges and the HS2 college are currently working in partnership to build capacity and capability to understand and respond to specific skills needs. There is a huge opportunity to develop regional airports via expansion. A successful region needs a successful airport (and vice versa). It needs to be ensured that all regions can compete for new slots created by Heathrow expansion new domestic slots should not just serve the places that they have done before. In addition, there needs to be a joint effort to lower Air Passenger Duty on domestic flights. Heathrow expansion needs to fit with a multi-modal transport plan. It is a necessity to make best use of transport infrastructure across the UK. Heathrow has already played a role in supporting HS2 and could also be supportive in making the case for other infrastructure investments. For example, there is a movement arguing for a direct rail link going to Doncaster Sheffield Airport from the East Coast Mainline. There is an opportunity to improve the customer experience at Heathrow, for example working with airlines to ensure the process for passengers connecting onto an international flight from a domestic flight is smooth and seamless. Improvements like this can help business productivity. Please see our summary and priorities page overleaf to see how Heathrow is supporting Yorkshire today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 79

82 HEATHROW: HELPING YORKSHIRE AND THE HUMBER TO THRIVE SUMMARY FOR YORKSHIRE Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must provide more frequent and affordable connections to the rest of the UK Today: In January 2017, Heathrow introduced a 10 discount on departing domestic passenger charges which was increased by a further 50% in January 2018 to 15, supporting the existing route to Leeds Bradford Airport. Tomorrow: Expansion will mean strengthening existing UK routes, as well as the possibility of new UK routes to Heathrow. This includes the potential for new routes between Heathrow and Humberside and Doncaster- Sheffield, which have been named on indicative route maps from airlines. Suggestion: As the UK s largest airport and the only hub, Heathrow could do more to advocate for initiatives to make connections to Yorkshire stronger and more frequent, for example campaigning for cuts to Air Passenger Duty (APD) and advocating ring-fencing for domestic slots with expansion to bring more domestic flights. Heathrow could also explore how passenger experience could be improved for connecting passengers travelling from other UK airports onto onward international flights. 2 Through expansion, Heathrow must support and be integrated into the economic development of the region Today: Heathrow is expanding its successful Business Summit programme, which in October 2018 will welcome businesses across Yorkshire and the Humber to Doncaster to meet and build relationships with some of the airport s largest suppliers. Tomorrow: Heathrow is in the process of visiting and selecting four logistics hubs, off-site construction centres that will enable businesses across the country to get involved in expansion. Of the 65 long-listed sites still in the running, 11 are located in Yorkshire. Suggestion: Through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, working with and sharing this knowledge with stakeholders in Yorkshire to help inform and enhance their own plans. This could also work the other way; for example, learning from the experiences of the National College for High Speed Rail in Doncaster. 3 Through expansion, Heathrow must support British exporters through improved cargo capacity and connections to the world Today: Last year Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners included Brigg-based SofMat, which used its grant to facilitate visits to potential new markets in the USA and Switzerland. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across Yorkshire and the Humber to trade with the world. As Heathrow expands, it is also looking at how freight processing can be improved across the airport. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help ease exporting from Heathrow. For example, Heathrow could look at more ways to work with HMRC to improve freight processing in and around the airport, and how it could work with Chambers of Commerce to provide more advice and guidance on exporting, where required. 4 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into every region Today: Heathrow is already working to build the Yorkshire brand among international visitors, and has partnered with the GREAT Britain campaign to display hundreds of images of British tourist destinations in Terminal 3 to millions of passengers each year. Tomorrow: Heathrow has pledged to promote the UK s regions and nations to its 78 million passengers, which will help showcase Yorkshire s offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, bringing international visitors and investors to Yorkshire, and getting goods from Yorkshire and the Humber out to the world. Heathrow could do more to maximise the benefits of expansion for the Yorkshire tourism sector, such as working more closely with tourism organisations and coordinating activity. PAGE 80 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

83 THE WORLD IS WAITING FOR THE THE WORLD IS WAITING FOR THE SOUTH EAST SOUTH EAST Freshwater Bay, Isle of Wight

84 HEATHROW: BOOSTING THE SOUTH EAST The South East has one of the best performing regional economies in the UK. It has the highest employment rate of any region 69, exports the greatest value of goods of any region 70 and attracts the most Foreign Direct Investment projects of any region outside of London 71. This strong economic performance is built upon a diverse industrial base, from the digital tech multi-nationals like Microsoft and Oracle based in Reading, to the world-famous motorsport companies in Oxfordshire and the marine and maritime sector on the Solent. Over the next decade, the South East s economy is forecast to grow at the fastest rate of any region other than London 72. Having a hub airport nearby boosts the activity that makes the South East an economic powerhouse. Heathrow expansion will support more of the imports, exports and movements of people that South East s businesses rely on to thrive. Surrey Chamber of Commerce members see the expansion of Heathrow as essential to supporting their own business growth. The best way for businesses to grow is to look outside the domestic market and therefore any barriers to do this need to be removed. Decisions need to be taken as soon as possible to avoid UK Plc being left behind the rest of the world. Louise Punter, CEO Surrey Chambers of Commerce Kent is seeking high-quality growth. This means clever jobs in clever companies. To do this requires a better export performance and that means access to a hub. Douglas Horner, Director Trenport Investments PAGE 82 THE WORLD IS WAITING

85 THE WORLD IS WAITING FOR SOUTH EAST CASE STUDY PROJECT 150 CLASSIC CAR RENOVATORS Project 150 is a microbusiness based in rural Kent. It restores classic and vintage cars to meet customer specifications, with the oldest vehicle it has worked on built over a century ago. The business has been going for ten years and began almost by accident, when a hobby turned into a commercial operation. Today, five people are involved in the delivery of the restoration tasks that Project 150 undertakes. The restoration of classic and vintage cars requires specialist mechanical parts. In many cases, the suppliers of the parts can only be found overseas. This is where Heathrow comes in. Project 150 regularly imports small consignments of specialist parts from across America it can phone a Ford dealer on the American East Coast in the morning and receive the goods at the door the following day. The incredible speed at which specialist parts can be imported from America dramatically reduces the length of time that it takes to complete a restoration project. In other words, Heathrow provides a fast and dependable freight route that serves the many small businesses within the classic and vintage car industry. Expansion will enable these businesses to access more specialist parts, more frequently, and from more destinations around the world. IT S TIME FOR HEATHROW EXPANSION PAGE 83

86 HEATHROW: BOOSTING THE SOUTH EAST The South East at a glance 73 How could the South East benefit from the UK having new and frequent connections to more markets across the globe? Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years The South East attracted 1,082 Foreign Direct Investment projects between and , which generated over 25,000 new jobs. The South East s businesses exported 45.2 billion worth of goods in The top category of export commodity was machinery and transport equipment. International students off-campus expenditure in the South East totals 641 million a year. Over 5,000 jobs in the region are supported by this spending. 5.2 million international visitors came to the South East in 2016, spending over 2 billion whilst on their trips. Expanding Heathrow is estimated to create up to 33,200 jobs 74 for the South East and up to 30 billion of economic benefits 75, according to independent analysis from Quod based on data from the Airports Commission. Investments in the proposed Southern Rail Access scheme would connect Heathrow to Waterloo, Clapham Junction and the South East. Heathrow s logistics hub programme may also offer opportunities for local businesses 65 long-listed sites are still in the running to be the final four hubs, including two in the South East. OXFORD BASINGSTOKE SOUTHAMPTON AIRPORT SOUTHAMPTON BICESTER READING MILTON KEYNES LONDON HEATHROW PORTSMOUTH WOKING GUILDFORD BEDFORD ASHFORD INTERNATIONAL EUROSTAR Microsoft UK, Reading PAGE 84 THE WORLD IS WAITING

87 THE WORLD IS WAITING FOR THE SOUTH EAST The Emirates Spinnaker Tower, Portsmouth A SPOTLIGHT ON KENT Home to the Archbishop of Canterbury at Canterbury Cathedral, some of Europe s best beaches, and a highly diversified economy the Garden of England welcomes tourists and business from across the world. In February 2018, we went to Ashford to speak to business and community leaders about how Heathrow expansion will help with their plans to grow the local economy. Feedback from the conversation included: Heathrow expansion will support new trading relationships. The vote to leave the European Union has increased the importance of building new trading links around the world. Without Heathrow expansion there is a danger that trading links will instead be forged through competitor hub airports like Schiphol and Frankfurt. As an exporting county, the South East needs an expanded hub airport to sell more goods and services into more international markets. Improving local transport connectivity to Heathrow will create economic benefits. Heathrow is only a 40-mile drive from the western edge of the Kent, and a 2 hour 13 minute train journey from Dover at the eastern edge. For local people travelling to and from Heathrow, and for local SMEs picking-up and dropping-off freight at the airport, more direct transport links will mean shorter journey times and increased productivity. It makes good business sense to expand Heathrow. Firstly, it is logical to build upon Heathrow Airport s established international brand. No other UK airport commands the same recognition. Secondly, it is logical to develop Heathrow as the UK s only hub airport. Trying to create multiple hubs would create inefficiencies for heavy users of international routes, such as freight forwarders. Successful delivery of a big infrastructure project can instil business confidence. There is a perception that too many big infrastructure projects are not delivered on time and to budget. A particular concern about Heathrow expansion is the consequences it will have for the M25, which is the entry and exit point to Kent. Heathrow could do more to communicate to and reassure passengers and exporters that access to motorways such as the M25 will not be compromised by construction works. Please see our summary and priorities page overleaf to see how Heathrow is supporting the South East today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 85

88 HEATHROW: BOOSTING THE SOUTH EAST SUMMARY FOR THE SOUTH EAST Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must support exporters from the South East through improved cargo capacity and connections to the world Today: In 2017, Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners included hand-crafted leather goods producer Pampeano, based in Oxford, which will use the grant to showcase products at a major retailer buying event in the US. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the South East trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help ease exporting from Heathrow. For example, by looking ways to improve freight processing around the airport, and working with the Chambers to look at more ways to provide advice and support to encourage SMEs to start exporting. 2 Through expansion, Heathrow must provide more frequent and affordable connections to the South East Today: The potential Crossrail extension to Ebbsfleet would significantly improve travel time to Heathrow from East Kent and the rest of the region. Meanwhile, the proposed Southern Rail Access scheme would connect Heathrow to Waterloo, Clapham Junction and the rest of the South East. Heathrow continues to support this scheme as part of its 9-point plan for Bringing Britain Closer which supports sustainable and simple public transport journeys to the airport. Tomorrow: Heathrow is committed to continuing the conversation of how the benefits of expansion can be maximised for the UK. Local access and transport matters will be a key area for the South East, and Heathrow is keen to work with relevant partners to boost public journeys to Heathrow, and make connections as simple and seamless as possible. Suggestion: The realignment of the M25 is a key part of Heathrow s expansion plans, and was consulted on earlier this year. It is a key issue for businesses in the South East, which think Heathrow could do more to communicate to and reassure passengers and exporters that access to motorways such as the M25 will not be compromised by construction works. 3 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the South East Today: Heathrow is already working to build the UK s international brand among visitors, and has partnered with the GREAT Britain campaign to Showcase attractions all over Britain including the South East, through our GREAT campaign gallery in Terminal 3. Tomorrow: Heathrow has pledged to promote the UK s regions and nations in our terminals, which will help showcase the South East s offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, bringing tourists and investors to the South East, and getting the region s goods out to the world. Heathrow could do more to maximise the benefits of expansion for the South East tourism sector, such as working with the region s tourism bodies to understand their needs. 4 Through expansion, Heathrow must support and be integrated into the economic development of the South East Today: Heathrow has ran a successful Heathrow Business Summit programme at the airport for over 20 years, to help SMEs win contract opportunities with the airport s major suppliers. It is free to attend for all South East SMEs, and the next flagship event will be held close to the airport in November. Tomorrow: Heathrow is committed to continuing the conversation of how the benefits of expansion can be maximised for the whole of the UK. How expansion can complement local growth plans and maximising benefits from Crossrail, will be key to the South East. Furthermore, to build its new runway, Heathrow is committed to offsite manufacture and pre-assembly in centres across the UK. Of the 65 long-listed sites still in the running to become one of Heathrow s four logistics hubs, two are located in the South East. Suggestion: Heathrow could explore the possibility of collaborating with infrastructure projects to create a single, simplified portal for new opportunities for SMEs. In addition, through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in the South East to help inform and enhance their plans and ensure alignment between projects. PAGE 86 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

89 THE WORLD IS WAITING FOR THE THE WORLD IS WAITING FOR SOUTH WEST SOUTH WEST Balloon Fiesta near Clifton Suspension Bridge, Bristol

90 HEATHROW: INVESTING ALONGSIDE THE SOUTH WEST The South West produces 120 billion of economic output every year due to its unique attributes. The economy has an eclectic mix of the rural and the urban. The coastal offerings of Devon and Cornwall, and the world-famous Glastonbury Festival and Stonehenge, are just a few examples of the region s cultural and tourist assets. Marine science and manufacturing in Plymouth and the aerospace industry in Bristol show the strengths of the region s cities. Other significant investments in South West infrastructure will support the regional and national economy even further. Hinkley Point C in Somerset will provide enough electricity to power nearly six million homes. A new A30 link road will improve access to the A391 near St Austell. The government has allocated nearly 80 million from the new Transforming Cities Fund to the West of England 76. Further investments can help link the South West to London, and Heathrow expansion itself presents the possibility of more air connectivity between Newquay and the UK s only hub airport. This will help create more economic activity, more jobs and more opportunity in the region. For SMEs like us, an expanded Heathrow is a no-brainer to keep South West businesses connected to new trade opportunities round the globe. Jonathon Jones, Managing Director of Trading Tregothnan Tea Glastonbury Festival, Somerset PAGE 88 THE WORLD IS WAITING

91 THE WORLD IS WAITING FOR SOUTH WEST CASE STUDY MAIL HANDLING INTERNATIONAL (MHI) For the last 22 years, MHI has been moving mail around the world from its base in Bristol. The company provides holistic mail services to its clients by using state of the art technology and extensive knowledge of global distribution networks. Being a leader in cross border e-commerce, MHI is reliant on efficient logistics partners to deliver the increasingly demanding expectations of online consumers. MHI has had long and productive relationship with Heathrow and regards the airport as a unique and crucial piece of UK infrastructure. There are three reasons for this. Firstly, MHI delivers mail to Heathrow every day to be sent on to markets outside of Europe. Secondly, MHI s overseas customers particularly those based in Asia use Heathrow as a gateway to sell into mainland Europe. Thirdly, Heathrow is the only UK airport that can reliably facilitate business travel to and from European destinations within a single day. The capacity constraints facing Heathrow already have a negative impact on MHI. In the run-up to Christmas the peak period for international mail MHI has to use airports other than Heathrow. This means more trucks doing more miles at greater cost. Equally, short-haul business flights are the first to be affected if Heathrow s take-off and landing schedule is interrupted. This means missing meetings and potentially missing out on new clients. MHI believes that, in a post-brexit world, these effects will become more acute expansion is a signal that the UK remains open for business. MHI also believes that there are several opportunities to improve Heathrow alongside expansion. Efforts can be made to reduce congestion in the horse shoe cargo area, to give returning business travellers a speedier airport exit and to improve the parking connectivity for business travellers at Terminals 2 and 3. IT S TIME FOR HEATHROW EXPANSION PAGE 89

92 HEATHROW: INVESTING ALONGSIDE THE SOUTH WEST The South West at a glance 77 How could the South West benefit from the UK having new and frequent connections to more markets across the globe? Marine repairs, Cornwall The South West attracted 407 Foreign Direct Investment projects between and , which generated over 12,000 new jobs billion worth of goods was exported from the South West in 2017, with the region s top three goods exporting destinations being the USA, Germany and France. International students off-campus expenditure is 323 million in the South West, with spending supporting over 2,800 jobs in the region. 2.5 million international visits were made to the South West in 2016, generating expenditure of over 1.3 billion. Expanding Heathrow is estimated to create up to 12,300 new jobs 78 in the South West and up to 13 billion of economic benefits 79 to the region, according to independent analysis from Quod based on data from the Airports Commission. Potential for new domestic flights to and from Newquay. New rail connections could cut journey times by train from Bournemouth to Heathrow by 34 minutes compared to today. Heathrow s logistics hub programme holds potential for local businesses 65 long-listed sites are still in the running to be the final four hubs, including four in the South West. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years Potential new air routes with expansion * BRISTOL * Potential new routes based on indicative route maps published by easyjet and Flybe EXETER BOURNEMOUTH NEWQUAY PLYMOUTH PENZANCE PAGE 90 THE WORLD IS WAITING

93 THE WORLD IS WAITING FOR SOUTH WEST Graphic PLC, Crediton, Devon A SPOTLIGHT ON BRISTOL At the start of May 2018, we visited Bristol to speak to business and community leaders, including the first Metro Mayor of the West of England Tim Bowles, about how Heathrow expansion will help with their plans to grow the local economy. Bristol is the largest city in the West of England, which is one of the UK s most prosperous regions and unique outside of London as being a net contributor to the UK national purse. Following agreement of a devolution deal, the new West of England Combined Authority (WECA) was established in February 2017 and is made up of three of the local authorities; Bath & North East Somerset, Bristol and South Gloucestershire. WECA is able to take proactive decisions on the region s transport, housing, adult education and skills, to build on the area s success and deliver more growth for the local and national economy. Feedback from the conversation included: Western Rail Access from Reading to Heathrow is vital to Bristol and the West of England as an international trading region. Connectivity is one of the most important elements to unlocking growth in Bristol and the West of England. A Western Rail Link would reduce journey times to and from Heathrow and significantly reduce the number of people travelling to the airport by car. Heathrow continues to support the proposed Western Rail Link and urges the Government and Network Rail to progress the development of this scheme. The West of England is leading on innovation and is home to four world class universities which lead very high-level research and innovation, supporting one of the most highly skilled workforces in the country. The region is renowned globally for its aerospace, engineering and advanced manufacturing innovation. For example, Bristol is home to the National Composite Centre which is helping to accelerate the UK s industrial productivity via manufacturing and design solutions. Heathrow is a gateway for international companies to Bristol. Foreign businesses often consider Bristol s relative proximity to London as a convenient extension to the Capital. The West of England Combined Authority wants to increase the number of exports, both goods and services, and also attract more international trade visits and delegations. Expansion of Heathrow is critical to enabling this. The region is working with the Department for Business, Energy and Industrial Strategy (BEIS) on a Local Industrial Strategy for the West of England. This is part of the area s drive towards creating clean and inclusive economic growth in the West of England and ensuring that people benefit from more job opportunities, a stronger economy and a high quality of life. Please see our summary and priorities page overleaf to see how Heathrow is supporting the South West today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 91

94 HEATHROW: INVESTING ALONGSIDE THE SOUTH WEST SUMMARY FOR THE SOUTH WEST Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must support exporters from the South West through improved cargo capacity and connections to the world Today: In 2017, Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. There were four winners from the South West: Software company Appen, based in Exeter, and Bristol-based firms Magic Mirror and AWW Architects and Airboss Tyres based in Gloucestershire. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across the South West trade with the world. Suggestion: Heathrow could work with the Government and Chambers of Commerce to help South West SMEs understand more about how they can start exporting including a guide to customs arrangements and where to find advice. Heathrow could work with the Chamber network to determine the key issues where advice and further assistance is required. 2 Through expansion, Heathrow must provide more frequent and affordable connections to the South West Today: In January 2017, Heathrow introduced a 10 discount on departing domestic passenger charges which was increased by a further 50% in January 2018 to 15, helping to benefit potential future flights to the South West. Tomorrow: New capacity will create the potential for new routes to currently unserved UK airports like Newquay, supported by the proposed 10 million Route Development Fund which Heathrow has committed to with expansion. Suggestion: Heathrow could use its position to build support for specifying Public Service Obligation routes by the airports they link, rather than cities, enabling possible new connections to destinations like Newquay. The airport should continue to urge Government to investigate the use of Public Service Obligation routes between Heathrow and specific UK cities in circumstances where airlines would not enter the market based solely on commercial interests. 3 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into the South West Today: Heathrow is already working to build the UK s brand among international visitors, and has partnered with the GREAT Britain campaign to showcase attractions all over Britain including the South West, through its campaign gallery in Terminal 3. Tomorrow: Heathrow has pledged to promote the UK s regions and nations in its terminals, which will help showcase the South West s offer to millions of incoming tourists from around the world. Suggestion: Heathrow is a gateway to the UK, bringing tourists and investors to the South East, and getting the region s goods out to the world. Heathrow could do more to maximise the benefits of expansion for the South West tourism sector, such as working with the region s tourism bodies to understand their needs. 4 Through expansion, Heathrow must support and be integrated into the economic development of the South West Today: Heathrow has run a successful Heathrow Business Summit programme at the airport for over 20 years, to help SMEs win contract opportunities with the airport s major suppliers. Most recently, Heathrow held its Business Summit South West in Somerset in March, welcoming businesses across the region to meet new contacts free of charge. Tomorrow: Heathrow is in the process of visiting and selecting four logistics hubs, off-site construction centres that will enable businesses across the country to get involved in expansion. Of the 65 long-listed sites still in the running, four are located in the South West. Suggestion: Heathrow could explore the possibility of collaborating with infrastructure projects to create a single, simplified portal for new opportunities for SMEs. In addition, through its Skills Taskforce and other engagement, Heathrow could continue conversations on how to bridge the UK skills gap and deliver infrastructure sustainably, sharing this knowledge with stakeholders in the South West to help inform and enhance their plans and ensure alignment between projects. PAGE 92 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

95 THE WORLD IS WAITING FOR THE WORLD IS WAITING FOR LONDON LONDON View from Tower Bridge towards the Shard, London

96 HEATHROW: CEMENTING LONDON S PLACE IN THE WORLD London is one of the most successful and important cities in the world. It has particular sectoral specialisms in financial services, real estate, scientific and technical activities and information and communication. These specialisms help to attract huge amounts of Foreign Direct Investment (FDI) in the last five years London has attracted more than three times as many FDI projects as any other part of the UK 80. Just as the city attracts investment from all over the world, it sells all over the world too. London exports over 100 billion in services and over 30 billion worth of goods every year 81. Because of its strong international connections and farreaching global influence, London s economy is the standout performer of the UK. It produces the most economic output, has the highest earnings and has experienced the strongest recent growth of any region or devolved nation. What s more, London s population of over one million businesses is forecast to drive stronger growth than any other part of the country over the next ten years 82. Heathrow expansion will help London to maintain its place in the world, allowing it to remain competitive with other dynamic and high-growth cities across the globe. Increased air connectivity will facilitate more trade, inward investment and opportunity. Heathrow expansion will provide new and exciting opportunities for young people. Steve Tasker, Market Director Atkins (Member of the SNC-Lavalin Group) It s time to unlock the massive economic benefits this project will bring to businesses all round the country. Mark Reynolds, CEO Mace PAGE 94 THE WORLD IS WAITING

97 CASE STUDY THE WORLD IS WAITING FOR LONDON SEGRO SEGRO began life in 1920 as The Slough Trading Company Ltd, a syndicate of businessmen led by Sir Percival Perry (later Lord Perry) and Noel Mobbs (later Sir Noel Mobbs), acquired a 243 hectare site on the Bath Road at Slough, close to where Heathrow is today, together with 170,000 sq m of workshops and all the vehicles returned from World War 1 that became surplus to the UK Government s requirements. Nearly 100 years later, SEGRO the company is worth 9 billion and still owns and manages the Slough Trading Estate. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries. Heathrow is one of these transportation hubs, and is of vital importance to the business and many of its customers. However SEGRO s customers often note that other European hubs, such as Paris Charles de Gaulle and Frankfurt, have several times more weekly connections than Heathrow to key markets like China, due to Heathrow operating at capacity. Heathrow plays a pivotal role for SEGRO the business says its customers are very much reliant on the success of the airport particularly the 800 customers within 10 miles of Heathrow, ranging from engineering firms to food companies. They rely on Heathrow s status as the UK s largest port by value, and the unique connectivity Heathrow offers to get their goods out to markets across the globe. Neil Impiazzi, SEGRO Partnership Development Director, says the business has been a long term supporter of Heathrow expansion, as it believes adding capacity and new connections from the UK s hub will allow Britain to compete in a global market. IT S TIME FOR HEATHROW EXPANSION PAGE 95

98 HEATHROW: CEMENTING LONDON S PLACE IN THE WORLD London at a glance 83 How could London benefit from the UK having new and frequent connections to more markets across the globe? London attracted 3,816 Foreign Direct Investment projects between and , which generated over 105,000 new jobs billion worth of goods was exported from London in 2017, with the region s top three goods exporting destinations being the USA, Germany and Hong Kong. International students off-campus expenditure is over 1 billion in London, with spending supporting over 8,800 jobs in the region. Over 19.1 million international visits were made to London in 2016, generating expenditure of over 11 billion. Expanding Heathrow is estimated to create up to 38,400 new jobs 84 in London and up to 44 billion of economic benefits 85 to the region, according to independent analysis from Quod based on data from the Airports Commission, as well as up to 5,000 additional apprenticeships. Crossrail will link Heathrow to the City of London, Canary Wharf and East London Upgrades to the Piccadilly Line will reduce journey times for tube passengers. Heathrow s logistics hub programme holds potential for local businesses 65 long-listed sites are still in the running to be the final four hubs, including two in London. Key: Logistics hubs long-listed locations Business Summit locations in the last 3 years OLD OAK COMMON LONDON HEATHROW PADDINGTON ST PANCRAS INT L KINGS CROSS FARRINGDON STRATFORD CANARY WHARF LIVERPOOL ST WATERLOO CLAPHAM JUNCTION We have long argued that for Britain to succeed in the global economy, we need new hub capacity and that means building a third runway at Heathrow. Government needs to bring an end to indecision and back Sir Howard s recommendation and let Heathrow get on with building the new runway as quickly as possible. David Sleath, Chief Executive SEGRO PAGE 96 THE WORLD IS WAITING

99 THE WORLD IS WAITING FOR LONDON More London Riverside, London SE1 A SPOTLIGHT ON LONDON The world s largest financial centre and leading investment destination, and a global hub for culture, home to worldfamous museums, theatres, parks, and historic sites London is a richly diverse capital city. In April 2018, we visited London Blackfriars to speak to business leaders about their vision for London s future and how Heathrow expansion fits in with their plans. Feedback from the conversation included: Businesses need certainty, and approval for Heathrow expansion would send a strong signal that London is open for business. It was emphasised that London s position as a global centre for business and commerce can t be taken for granted. Global companies will not hesitate to move headquarters to another European city if offered a more favourable environment. It is vital that Heathrow expansion happens now, in order to send a strong signal to the world to show that London is open for business and investment. Expansion would give a confidence boost to small businesses. Small firms play a critical role in London s economy, accounting for almost 99% of London s businesses and nearly 50% of the capital s employment. Time is of the essence: British SMEs have been recently hit by an increase in business rates, and according to some attendees, their growth has been hamstrung by external forces. For small businesses, expansion is key to increasing regional connectivity from London to rest of UK and connecting London s world-beating micro-businesses to new markets. Heathrow needs to work with small firms to ensure they have a major part in the estimated 14 billion procurement exercise to build the runway and associated works. Expansion is an opportunity to increase cargo capacity for London s businesses. London s companies rely on Heathrow to export their goods, but the squeeze on capacity is a constraint. As important as Heathrow is as a key cargo hub, Charles de Gaulle and Frankfurt Airports are also crucial hubs, and these airports have more frequent links to key markets like China. Businesses see expansion as an opportunity to grow cargo capacity at Heathrow, but also to reduce throughput times to increase efficiency, and make processes more predictable to reduce costs. Planned infrastructure investment to improve transport links to Heathrow can provide a significant boost to London s economy. Heathrow is Britain s front door and international investors need access to Heathrow Airport to be seamless. For international investors, how easy it is to access the airport is just as important as how many flights depart from Heathrow. Crossrail will boost connectivity but the proposed Western Rail Link and Southern Rail Access schemes must be delivered to reduce journey times and enable better connectivity between Heathrow and surrounding areas. More work needs to be done to provide greater reliability and improved bus links to the airport, from Surrey, and surrounding counties to London. Heathrow expansion could leave a legacy for its local community and London as a whole. It is estimated that 40,000 jobs will be created at the airport with expansion, and with Crossrail making it quicker than ever to get to Heathrow from across London, these opportunities will be open to thousands more Londoners within commuting distance. But attendees noted there are barriers to creating a skills legacy careers advice in schools is an issue, with young people not always having the information they need to make career decisions. Attendees also raised the question of how to get young people interested in construction careers, which are still seen as dirty and not an attractive pathway. Heathrow could explore working with London colleges and universities to address these issues. Please see our summary and priorities page overleaf to see how Heathrow is supporting London today and in the future. IT S TIME FOR HEATHROW EXPANSION PAGE 97

100 HEATHROW: CEMENTING LONDON S PLACE IN THE WORLD SUMMARY FOR LONDON Suggestions are from the Heathrow National Conversation events and other engagement with stakeholders from the region 1 Through expansion, Heathrow must provide more frequent and affordable connections to London Today: Heathrow is a major transport hub. It has the UK s largest bus and coach interchange, express rail services to London with Heathrow Express, and the Piccadilly line. It has made a fair financial contribution towards the construction of Crossrail, which connects directly to Heathrow, and has already set up ambitious initiatives for its colleagues, such as one of the world s largest single-site car share schemes. Tomorrow: In 2019, Crossrail will link Heathrow to the City of London, Canary Wharf and East London. Upgrades to the Piccadilly Line will provide millions more Londoners with easier and quicker access via sustainable transport to the UK s hub. Heathrow also continues to promote the proposed Western and Southern rail access schemes. Suggestion: Heathrow could do more to urge Government to progress the Western Rail Link and Southern Rail Access projects, and work with communities to understand their requirements for local bus services to the airport. 2 Through expansion, Heathrow must support and be integrated into the economic development of London Today: Londoners benefit from the 76,000 jobs at the airport today and the tens of thousands more jobs indirectly supported by Heathrow. Heathrow works with schools in three of its closest London boroughs each year to promote careers at the airport, and holds an annual Business Summit event to help London SMEs connect with our supply chain. Tomorrow: With expansion, London will benefit from 10,000 apprenticeships and thousands more jobs in the boroughs close to the airport which creates the potential to eradicate youth unemployment. The Heathrow Skills Taskforce, chaired by Lord Blunkett, will publish recommendations for the airport s future skills strategy later in Suggestion: To thrive, London s economy requires a large number of construction jobs, for Heathrow expansion but also many other projects, so Heathrow could explore how to encourage young people to take up a career in construction by working with London s education institutions. 3 Through expansion, Heathrow must support London s exporters through improved cargo capacity and connections to the rest of the world Today: Last year Heathrow launched its World of Opportunity Grants programme, to support SMEs with their exporting ambitions. Winners from London included designer jeweller Farah Qureshi, who used her grant to travel to Dubai to meet potential buyers and develop a greater understanding of business practice in the UAE. Tomorrow: Expansion will enable the doubling of cargo capacity at Heathrow and the creation of up to 40 new long-haul trading routes, helping more businesses across London to trade with the world. As Heathrow expands, it is also looking at how it can address the barriers that SMEs face to export. Suggestion: Heathrow could work with the Government to help make customs rules easier to understand for SMEs who are considering exporting, and work with Chambers to provide advice in areas where it is required. Expansion is also an opportunity for Heathrow to transform and modernise the cargo area to improve efficiencies and predictability. 4 Through expansion, Heathrow must maintain its role as the gateway to the UK and drive tourism and investment into London Today: Heathrow already helps build London s global profile to its 78 million passengers. Terminal 3 has a number of London-themed gaterooms to show international passengers what the capital has to offer. Heathrow has also supported the #LondonisOpen campaign with 200,000 worth of advertising space in 2017, that has helped spread the word to international visitors that London is open for business, tourism and investment. Tomorrow: Heathrow has pledged to promote the best of every region and nation across its terminals, which will help showcase London to millions of incoming tourists from around the world and promote what London offers. Suggestion: Heathrow is the front door to London and the wider UK for international investors and business passengers from overseas. As the airport expands, it should ensure the arrivals journey through Britain s front door is smooth and shows the UK in the best light to visitors, including working with Border Force to improve efficiencies at immigration and passport checks. PAGE 98 THE WORLD IS WAITING: IT S TIME FOR HEATHROW EXPANSION

101 Heathrow expansion, one of the biggest construction projects in Europe, answers the demands of many Unite members across the UK for more skilled, well-paid and sustainable jobs. Expansion will deliver these jobs and growth to every nation and region of the UK, whilst Heathrow deliver on the work they have been doing to address environmental concerns; all at a critical time for UK workers. I would strongly urge Members of Parliament to vote in favour of expansion at Heathrow. Len McCluskey, General Secretary, Unite the Union