Heathrow has launched a new report ‘Supporting a Global Britain – The economic impact of Heathrow Airport’. Written by economics consultancy CEBR, it highlights the importance of aviation and Heathrow, as the UK’s hub airport, to the country’s trading future post-Brexit.
The report contains findings that will be of interest to you. It concludes that the UK will undergo an economic pivot over the next five years, increasing trade with non-EU countries by over 10% and trading less with the EU. As the UK’s largest port by value, Heathrow will be central to this growth, with the value of non-EU trade through Heathrow increasing by 11% during this period. This is down to the unique nature of air freight and Heathrow’s global connections, carrying high-value goods around the world to new trading partners, such as the CPTPP trade bloc.
A few of the headline findings include:
By 2025, the value of trade through Heathrow could grow to over £204bn, representing more than a fifth of the UK’s total trade in goods.
Heathrow is a major facilitator of UK trade, accounting for two thirds of all trade transported in the UK by value, with this figure rising to over 75% for non-EU trade specifically.
This growth in trade could boost every part of the UK. Regions with high manufacturing propensities – including the Midlands and North East – are likely to benefit most from increased trade passing through Heathrow.
Nearly half of all UK trade by value to CPTPP countries passes through Heathrow, including 65% of trade with Australia.
This new report comes soon after the UK-Australia FTA, G7 Summit and opening of negotiations with the CPTPP trade bloc and shows the potential shape of the UK’s post-Brexit, post-COVID economy in the future. It demonstrates the value of Heathrow to UK trade, with the vast majority of this cargo being carried on passenger planes. However, this trade boost may not be realised without the Government’s support for the aviation industry and the sector allowed to resume – latest figures show European competitor airports handling more trade than Heathrow, compared to 2019 levels.
