The government says a significant £1.1bn investment into London Stansted Airport could generate over 5,000 jobs.
Prime Minister Keir Starmer, speaking at the International Investment Summit in London on Monday, endorsed Manchester Airports Group's plans to increase the size of Stansted's existing terminal building by one third.
This expansion will allow the Essex hub to accommodate approximately 43m passengers annually and is projected to double its yearly contribution to the º£½ÇÊÓƵ economy to £2bn.
Planning permission was granted last October and construction is set to commence in 2025, with the project anticipated to take between two to three years to complete, as reported by .
Transport Secretary Louise Haigh stated: "We have been steadfast in our commitment to help British businesses grow and in turn boost the º£½ÇÊÓƵ's economy. This announcement is a clear signal that Britain is open for business."
The investment comprises £600m for the terminal extension and an additional £500m to enhance the existing terminal and broader airport infrastructure.
This includes the establishment of a 14.3MW solar farm on Stansted's estate, a crucial element of its decarbonisation strategy.
The announcement follows a surge in flights from Stansted, part of the wider Manchester Airports Group (MAG), in 2024 due to a resurgence in travel demand. The hub experienced its busiest ever summer season between June and August, with a record-breaking total of 8.8m passengers passing through.
Ken O'Toole, chief executive of MAG, announced: "By investing more than £1bn in Stansted over the next five years, we will be able to connect people and businesses in London and the east of England to even more global destinations, while welcoming millions more visitors to the º£½ÇÊÓƵ,".
He further added: "Aviation is an essential enabler of the success of the º£½ÇÊÓƵ's key high-value industries, and we look forward to helping the government achieve the highest sustained growth in the G7 through the sustainable growth of our airports."
Currently, several airports across the º£½ÇÊÓƵ are exploring their own expansion proposals.
Heathrow is considering whether to proceed with its long-delayed plans for a third runway, while Gatwick has already submitted an application to bring its second runway into routine use, at a cost of around £2.2bn.
Stansted plays a crucial role in the º£½ÇÊÓƵ's tech ecosystem. The airport is located at the heart of the so-called Golden Triangle to the north of London, a region that houses companies such as Google, GSK and Microsoft, as well as both Oxford and Cambridge University.
Haigh commented: "Transport is central to this Government's core mission of growing the economy. This is about giving companies like Manchester Airports Group the confidence to invest, boosting regional and national economic growth, and supporting the aviation sector while also meeting our existing environmental obligations."
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