The Chancellor of the Exchequer, Phillip Hammond, has confirmed the investment, which includes plans for seven new aircraft stands, a parallel taxiway and a passenger terminal extension.
The airport, which currently welcomes 4.3m passengers a year, is expecting this to grow to 6.5m by 2025.
The expansion should create more terminal facilities, more space, and a greater number of flights. It also widens the possible destination choices, as airlines look to fly to more long-haul destinations.
The airport is located 20 minutes from London.
• For more breaking news and in-depth features, sign up to C&IT Magazine's daily Newstracker here