Thousands of new jobs, billions of pounds in economic activity and millions of pounds a year for community projects to tackle poverty are set to be created after Luton Airport’s long-term expansion plans cleared their final legal hurdle.
Luton Rising, the Luton Council-owned company that owns the airport, has announced that all legal processes have now been completed, allowing plans to increase the airport’s annual capacity from 19 million to 32 million passengers by the mid-2040s to move forward.
The expansion is expected to create up to 11,000 new jobs and generate an additional £1.5 billion a year for the local economy, while significantly increasing the amount of money invested back into Luton and neighbouring communities.
A new Community First Fund will see £1 invested into community projects for every additional passenger travelling through the airport above its current capacity of 19 million passengers a year.
By the mid-2040s, the fund could be worth up to £13 million annually, with at least 40 per cent of the money going to communities living closest to the airport. During its first five years, funding will focus on projects that tackle poverty and support decarbonisation.
The airport has already generated more than £500 million for frontline and community services in Luton since 1998, with Luton Rising saying the expansion will allow that investment to increase significantly in the years ahead.
Councillor Tahmina Saleem, leader of Luton Council, said: “London Luton Airport sits at the heart of our town, and I’ve seen first-hand what Luton Rising’s community investment funding can mean for local families – helping lift children out of poverty, bringing greater employment opportunities, and giving young people the self-belief that they can go further in their aspirations. As the airport grows, so does the power to change local lives and so we are determined to make the most of this once-in-a-generation opportunity.”
Rachel Hopkins, MP for Luton South and South Bedfordshire, said: “Luton Airport drives investment and opportunity in our town, for our town, so it’s welcome news that plans for long-term growth have been approved.
“At its core, this development will help to deliver our shared priorities of skilled, local jobs of the future for our young people and long-term investment directly into our communities. Importantly, the Green Controlled Growth framework will ensure our local area is protected and residents prioritised.”
The expansion will be governed by Luton Rising’s legally binding Green Controlled Growth framework, which requires strict limits on noise, carbon emissions, air quality and transport impacts to be met before passenger numbers can increase.
Paul Kehoe, chair of Luton Rising, said: “This is a landmark moment, not just for Luton, but also for how the UK thinks about publicly-owned infrastructure delivering for communities and the country.
“We are very pleased to now have the certainty we have been working towards. As a community-owned organisation, every passenger travelling through our airport means more investment in local people and services.”
Alberto Martin, chief executive of Luton Airport, said: “London Luton Airport is a stand-out example of a public-private partnership, backed by Aena, the world’s largest airport operator, and InfraBridge, a specialist infrastructure fund.
“As the operator of the airport, we have delivered the fastest growth period in London Luton Airport’s history and record customer satisfaction, with annual passenger numbers increasing from 10 million in 2013 to more than 18 million today. We are proud to operate one of the UK’s most community-driven infrastructure assets, and by working with Luton Rising have helped deliver exceptional outcomes for Luton, airport users, and our airline partners.”
The legal milestone follows the Government granting the airport a Development Consent Order earlier this year, making Luton Rising the first council-owned company in the UK to secure planning approval for a major airport expansion.
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