The expansion of Luton Airport has been approved by Transport Secretary Heidi Alexander.
She said she approved the airport’s expansion plan, which is for a new terminal rather than runway, despite the Planning Inspectorate recommending she reject it over environmental concerns.
Chancellor Rachel Reeves had been considering whether to expand the airport as a means to boost UK growth, following a similar decision to give the green light to a third runway at Heathrow at the beginning of the year.
Luton Airport, the UK’s fifth busiest airport last year, wants to increase its annual cap on passenger numbers from 18 million to 32 million by the mid-2040s, allowing its runway to be used for 77,000 more flights per year compared with last year.
In 2024, 16.9 million passengers travelled through the airport on 132,000 flights.
Ms Alexander approved the airport’s development consent order – which are used to obtain permission for nationally significant infrastructure projects – after being persuaded about the benefits expansion would bring to the UK economy.
A government source said: “The transport secretary has approved the expansion of Luton airport for its benefits to Luton and the wider UK economy.
“The decision overturns the Planning Inspectorate’s recommendation for refusal.
“Expansion will deliver huge growth benefits for Luton with thousands of good, new jobs and a cash boost for the local council which owns the airport.
“This is the 14th development consent order approved by this Labour government, demonstrating we will stop at nothing to deliver economic growth and new infrastructure as part of our plan for change.”
Luton Rising, the local economic development company that owns the airport, said the project would support around 12,000 new jobs in the area and provide an additional economic benefit of £1.6b per year.
Last month Ms Alexander also announced that she would support Gatwick Airport’s second runway plan if the project was adjusted.
The transport secretary has previously said the UK “can and must” boost aviation at the same time as protecting the environment, denying that the two are fundamentally incompatible.
However, the move risks reigniting divisions within cabinet over the government’s climate ambitions, which includes a 2050 target to reduce emissions by 100% compared with 1990 levels.
Environmental groups immediately criticised the decision as “misguided”.
Johann Beckford, senior policy adviser at Green Alliance, said the government’s decision was “a bad case of déjà vu”.
“Doubling passenger and flight numbers will increase emissions, air pollution and noise.
“This latest misguided project does more to undermine UK climate credibility than it does to expand the economy as, once again, the growth impact of the expansion is likely to be overstated.
“With almost 90% of Luton flights taken for leisure, this decision gives priority boarding to British tourists taking their money out of the country to spend abroad.”
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