‘How Labour councils can help Starmer and Reeves deliver their growth mission’

Economic growth is at the heart of our new government’s agenda, and rightly so. For too long we have stagnated, or even regressed, in our quality of life. The Government should be looking for examples of towns and cities across the country that have a solid plan in place that can support its mission of securing the highest sustained growth in the G7.

The conversation is, understandably, focused on how the Government can fund all the infrastructure projects it wants to achieve. There’s talk of increasing market favourability towards gilts, but achieving the Government’s growth mission doesn’t happen without Labour councils.

Consequently, other innovative methods are needed to unlock the spending power to facilitate delivering the best for our residents. In Luton, to unlock spending power to encourage growth and support communities, the council owns a range of assets through our wholly owned company, Luton Rising, including London Luton Airport, which ensures that financial benefits arising can flow directly into local and nearby communities.

Luton Rising

Luton Rising is bringing forward one of the biggest job creation programme opportunities in ageneration through the proposed expansion of London Luton Airport. If approved, the airport will increase the passenger capacity from 19 million passengers per annum (mppa) to 32mppa.

The expansion of London Luton Airport would add up to 11,000 new jobs at the airport and in the supply chain across the region, with around 4,800 directly in Luton. It would also deliver fair, high-quality and well-paid jobs that are on average 34% higher than the national average wage.

This is on top of the airport already being the most important employer in the region, with employment in and around the airport increasing by 9% in 2023 to an all-time high of 12,100 jobs, with 84% of these full-time.

READ MORE: Budget 2024: The tax rises and spending plans to expect as PM revises bus fare cap and reveals back-to-work package

The proposed expansion of London Luton Airport, which would see a second terminal added while making best use of the airport’s existing runway and assets, will play a crucial role in stimulating regional economic growth by enhancing trade, attracting investment, boosting tourism, and generating jobs that benefit the entire region.

If expansion is permitted, it’s anticipated to generate an extra £1.5billion annually in economic benefits and high-paying jobs. And it is key to our bold vision for eradicating poverty – our Luton 2040 Vision.

As a direct result of the council’s sole shareholding in Luton Rising, the airport has provided almost £500million to frontline services and vital voluntary, community and charitable organisations.

This annual provision allows vital community organisations to continue their work across our town and makes Luton the UK’s most socially impactful airport. For every passenger travelling through our airport, 53p is invested directly in local community causes – in 2019, this equated to 20 times that of any other UK airport.

READ MORE: Budget 2024: ‘We can avoid taxing workers by hiking capital gains tax’

It must also be said that the plans to expand London Luton Airport do not need to be in tension with Net Zero targets. If the government approves our plans, we have committed to introducing a unique and ground-breaking initiative called the Green Controlled Growth framework (GCG).

GCG is a new, environmentally-focused approach to managing growth at the airport, and is one of the most far-reaching commitments to the sustainable operation of an airport ever to be introduced in the UK.

It introduces maximum limits for the airport’s noise, greenhouse gases, air quality and surface access impacts. These are the areas in which, as the airport grows over time, there is most scope for impacts to increase in line with growth.

Potential of councils

It’s also not just the airport within Luton Rising’s portfolio – it has £1.5bn – £2bn worth of assets, such as the recently launched Luton DART (Direct Air-Rail Transit) that enables rail travel from London St Pancras International to London Luton Airport in just 32 minutes by the fastest trains and delivers a significantly better passenger experience.

We also have proposals to develop Green Horizons Science and Innovation Park that aims to bring forward 3,200 new jobs and establish a hub of sustainable industries and innovation. Bartlett Square and Morton House are other commercial developments in Luton Rising’s ownership that will deliver up to 2,000 and 200 new jobs respectively.

The government needs Labour councils to prioritise growth in line with its own agenda, and Luton Council is setting the stage for growth in our town. More local authorities across the country could adopt this model of utilising council-owned infrastructure to drive spending power – it’s clear to see the crucial role it plays in our town helping the council deliver for our residents.

It’s also clear that supporting Luton Rising’s ambitions to expand London Luton Airport is a vote for growth in Luton, neighbouring communities and businesses, and securing a more prosperous future​.

Read more of our Budget 2024 coverage:

• Labour’s Budget 2024: What policies could Rachel Reeves announce?
• ‘No fiscal rule is perfect. But this one means welcome investment’
• Fiscal rules: What is Reeves changing – and why does it matter?
• ‘We can avoid taxing workers by hiking capital gains tax’
• ‘A case against cuts, from the winter fuel allowance to the £2 bus fare cap’
• Minister says ‘normal’ for cabinet to seek good deal for departments amid unrest over cuts
• ‘How Labour can fix the worst economic inheritance since 1945′

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