Gatwick Airport expansion could bolster investment confidence in the UK

Plans to expand Gatwick Airport by bringing its second runway into routine use can proceed after campaigners lost a legal challenge against the government.

The conclusion of an eight-year planning and legal process means work can now begin and, according to BCIS chief economist Dr David Crosthwaite, represents a step towards positioning the UK as a more attractive and viable investment environment.

‘National schemes such as the Gatwick expansion are important in shaping the UK’s image as an attractive investment destination. This will hopefully encourage further private investment, which is desperately needed to stimulate construction activity, and by extension wider economic growth, and strengthen domestic supply chains,’ said Dr Crosthwaite.

‘The expansion is expected to complete in 2030, although this will likely depend on the construction industry’s capacity to deliver it. Discussions at recent meetings of the BCIS Civil Engineering Tender Price Index Panel have already shed light on skills shortages in the aviation subsector so labour will need to be managed carefully as the project progresses.

‘There could also be implications for smaller projects in the area surrounding Gatwick Airport. If the expansion absorbs a significant share of the available workforce, other projects could face delays and higher costs. However, this is only likely to become a more significant challenge if construction demand rises substantially, which appears unlikely in the near term.

‘That said, a green light for the project is welcome news and will hopefully provide greater certainty and a stronger pipeline of work for businesses and suppliers in the surrounding area.’

The Gatwick project is estimated to create around 14,000 jobs in the South East and contribute £1 billion a year to the regional economy.

With a reported value of £2.2 billion, it is described as one of the region’s largest capital investment projects for decades and is classed as a Nationally Significant Infrastructure Project.

A recent pulse survey by the Global Infrastructure Investor Association found evidence of growing investor appetite for UK infrastructure. In the second quarter of 2026, a larger share of respondents than in the previous year said they planned to invest between $2 billion and $3 billion over the following 12 months.

Challenges remain though with respondents citing the UK’s unattractive regulatory regime as the biggest barrier to infrastructure investment.

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