The government has approved plans to expand London Luton Airport.

Luton Rising, the airport’s owners, wanted to increase airport capacity from 18 million annual passengers to 32 million by 2043.

This would involve building a new terminal, new taxiways and increasing the capacity in the existing terminal.

Transport Secretary Heidi Alexander approved the proposals despite the Planning Inspectorate recommending she reject them over environmental concerns.

Due to the scale of the project, the airport had to submit a Development Consent Order to the Secretary of State for Transport for a final decision.

The decision had been delayed three times – most recently so newly appointed Alexander could have more time to consider the application.

Paul Kehoe, the independent chair of Luton Rising which is owned by Luton Borough Council, welcomed the approval which could bring “significant economic, employment and social benefits for our town”.

He said: “At a new capacity of 32 million passengers per year, our scheme will deliver up to 11,000 new jobs, additional annual economic activity of up to £1.5bn, and up to an additional £13m every year for communities and good causes.”