Budget could benefit Manchester Airport, says aviation expert

The scheme is aimed at unlocking stalled infrastructure projects and devolving more powers from central Government to Greater Manchester, the Chancellor said in his speech. The infrastructure provided under the scheme is likely to give Manchester Airport a real boost, an expert said.

“The UK’s regions are convinced of airports’ abilities to unlock inward investment and economic growth," said Jon Riley, a planning and aviation expert at Pinsent Masons. "It’s perhaps ironic that whilst George Osborne signalled yesterday in the budget that consultation on the Government’s aviation framework is delayed until the summer, the local authorities around his constituency are pro-actively taking their own decisions which will support the growth of Manchester Airport."

The deal with the GMCA, which is made up of ten of Greater Manchester's local authorities, is the second 'city deal' the Government has made with one of the Core Cities. The first deal was made with Liverpool in February.

Projects previously seen as being on the back burner because of spending cuts, including the Metrolink extension to Trafford Park and A6 to Manchester Airport relief road, could now be brought forward for ‘early implementation’, although no dates have been set, the GMCA said according to a local report.

"Early implementation of the A6 relief road, and the clear emphasis placed on links with emerging BRIC economies are very positive for Manchester Airport and will add to the growing momentum of its Airport City enterprise zone,” said Riley.

Under the agreement GMCA has agreed to £1.2bn of infrastructure investment and, in return, the Government has agreed to return up to £30m per year for 30 years, of the additional tax it receives as a result of increased economic activity in the city region to Greater Manchester.

Proposals for similar agreements with Bristol, Birmingham, Leeds, Newcastle, Nottingham and Sheffield will be finalised over the course of 2012, Osborne said.