Jobs and growth
Jobs and growth

UK jobs and benefits by region

The Airports Commission have estimated that Heathrow expansion will create up to 179,800 jobs and up to £211bn in economic region benefits across the UK by 2050. We’ve taken a further look at how these benefits will be broken down by regions and nations.

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An independent report by QUOD, commissioned by Heathrow, confirms over half the gains from forecasted economic benefits and job creation will be made outside of London and the South East.

That’s why so many people and businesses from across the UK are supporting Heathrow expansion including 40 Chambers of Commerce.

Regional employment benefits as a result of foreign investment and trade could total 179,800 new jobs across the UK in 2050 with long haul connections and increased freight capacity at an expanded Heathrow bringing more business to the UK.

How will your region benefit?
Table 1: Comparison of employment impacts by region in 2050 (jobs)

Expanded
Gatwick
Expanded
Heathrow
London 9,300 38,400
South East 8,000 33,200
London & SE 17,200 71,600
North West 4,800 15,300
East 4,100 12,900
South West 3,900 12,300
West Midlands 3,800 12,000
Yorkshire & Humber 3,500 11,200
East Midlands 3,100 9,800
North East 1,600 5,100
Rest of England 24,800 78,600
Scotland 4,100 16,100
Wales 2,200 8,400
Northern Ireland 1,300 5,000
Rest of UK 7,600 29,500
TOTAL 49,600 179,800

 

Using the same analysis, the growth expected as a result of Heathrow’s expansion is significantly more than that forecast for a new runway at Gatwick in all areas across the UK.

The West Midlands, for example, is forecast to receive an increase of £9.7 billion GDP for Heathrow, compared to £6.7 billion for Gatwick.

Table 2: Comparison of present value of real GDP impacts by Region (£bn 2014 prices)

Expanded
Gatwick
Expanded
Heathrow
London 18.5 35.1
South East 12.4 23.6
London & SE 30.9 58.6
North West 8.6 12.5
East 7.9 11.5
South West 6.9 10.0
West Midlands 6.7 9.7
Yorkshire & Humber 6.2 9.0
East Midlands 5.4 7.8
North East 2.8 4.0
Rest of England 44.5 64.4
Scotland 7.9 14.0
Wales 3.5 6.2
Northern Ireland 2.2 3.9
Rest of UK 13.6 24.1
TOTAL 89.0 147.2

 

Where will the economic growth come from?

Trade is likely to play a big part in economic growth, with towns and cities across the rest of the country currently benefitting from nine times more employment from foreign investment in manufacturing than those in London and the South East.

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Scotland, Wales and Northern Ireland are expected to lead the way in research and development and the digital technology field, experiencing the greatest benefits from increased employment in these sectors.

The report adds new detail to the findings of the Airports Commission in its interim report last year, which also confirmed an expanded Heathrow would deliver the best economic outcomes for regions.

It is based on the Airports Commission’s baseline scenario for future growth and remains a conservative estimate of the potential economic and employment benefits that could be delivered by a new runway at Heathrow.

Further scenarios developed by the Commission estimate the total economic benefit of Heathrow expansion at £211 billion across the UK, almost £65 billion more than the baseline adopted for this report, demonstrating that significant additional value could potentially be secured.

Sources: Regional Distribution of Employment and Economic Impacts (QUOD, 2015), Taking Britain Further, Volume 1 (Heathrow, 2014), Heathrow Airport north west runway: business case and sustainability assessment (Airports Commission, 2014)

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