Government Welcomes £1.1 Billion Investment to Boost Stansted Airport’s Capacity

Image Credit: Stansted Airport

The UK government has approved a significant five-year investment of £1.1 billion (US$1.4 billion) in London Stansted Airport, setting the stage for major upgrades that will unlock the airport’s full potential.

Of the total investment, £600 million (US$780 million) is earmarked for a terminal extension, while £500 million (US$650 million) will be used to enhance the existing terminal and upgrade the broader airport infrastructure. The terminal will expand by one-third, enabling Stansted to open new air routes to key business hubs and popular holiday destinations. These improvements will include a more enormous, more efficient security hall, an upgraded airfield taxiway, and revamped gate rooms, enhancing both capacity and comfort for travelers.

In addition to these upgrades, the project will also introduce a 14.3MW on-site solar farm, which will help meet the airport’s growing electricity demands. This follows Stansted’s newly created EV charging forecourt, further demonstrating the airport’s commitment to sustainability.

With planning permissions already in place, MAG (Manchester Airports Group), the owner of London Stansted, is in the final stages of procurement. Construction is slated to begin in 2025, with a projected timeline of two to three years for completion. As part of this investment, over 5,000 jobs are expected to be created, significantly boosting the local economy.

This investment is set to transform Stansted into a more efficient and sustainable airport and strengthen its role as a key gateway for both business and leisure travelers.

Boosting the UK’s economy

UK Transport Secretary Louise Haigh said, “We have been steadfast in our commitment to help British businesses grow and in turn boost the UK’s economy. This announcement is a clear signal that Britain is open for business. 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.”

Ken O’Toole, CEO of MAG, added, “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 UK. We are proud to be investing in our infrastructure in a way that will create jobs and stimulate trade, investment, and tourism. Aviation is an essential enabler of the success of the UK’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.”

Cath Bowtell, IFM Investors chair, said, “As co-owners of MAG, our commitment to this exciting new Stansted project reflects our confidence in the airport’s future growth story. As one of the world’s largest infrastructure investors, IFM has invested over decades to enhance the value to customers of the UK infrastructure we own and operate. MAG goes from strength to strength under the long-term stable co-ownership of IFM alongside Manchester and Greater Manchester local authorities.”