Out-Law News 1 min. read

The power of airports to generate growth and jobs cannot be ignored, a planning expert said


There are "serious deficiencies" in industrial policy and the UK needs to make strategic investments in aviation in order to underpin economic growth, Lord Heseltine has warned.

“Lord Heseltine understands regeneration and recognises the proven power of airports to generate growth and jobs. Additional capacity – especially in the south east – is needed urgently to ensure that UK plc doesn’t lose direct connections to growing overseas markets," said Jon Riley, a planning expert at Pinsent Masons.

Following the unveiling of Lord Foster's major airport proposals at the beginning of November, Ministers have ruled out making any decisions on whether to proceed with an airport hub in the Thames Estuary until at least next summer. This also blocks any decisions on London Mayor Boris Johnson's airport proposals, dubbed "Boris Island".  

But the Government's decision to hold off on airport plans could see Britain fall behind its competitors, Lord Heseltine warned. "Failure to invest in infrastructure can be disguised in the short run but is disastrous in the long run," he said. 

Plans for a third runway at Heathrow were dealt a further blow, when Labour joined the Conservatives and Liberal Democrats in declaring that a third runway at Heathrow was not an option.  "The answer for the south-east is not going to be to fall back on the proposed third runway at Heathrow. The local environmental impact means that this is off the agenda," Maria Eagle, shadow transport secretary, said. 

The Confederation of British Industry (CBI) has identified airport expansion as one of next year’s big policy battlegrounds. The UK “desperately” needs a bold decision to have a world leading airport," said John Cridland, director-general of CBI. 

The British Chambers of Commerce (BCC) has pointed to a study commissioned by Gatwick Airport management, which warns that the UK must find ways to increase aviation capacity in the South East. 

The study said that the UK could lose between £20 billion and£47bn in benefits over 30-50 years if the government does not reconsider “the current stance of no expansion”.

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