Morning:
6°c
Economy 'boosted £30billion' from Heathrow third runway
13 Jul 2009
Building a third runway at Heathrow airport could benefit the UK economy by £30 billion, a report from the British Chambers of Commerce (BCC) said today.
The extra runway - opposed by the Conservatives - would deliver between £8.6 billion and £12.8 billion in increased productivity and about £20 billion in wider economic benefits over 60 years.
These benefits would include higher levels of employment, with around 60% of benefits being outside the area of London and south east England.
Produced for the BCC by the economics and transport consultancy company Colin Buchanan, the report said that the UK loses between £900 million and £1.1 billion for each year that building the runway is delayed.
The report said that by reducing delays and increasing the frequency of flights, a third runway would save business passengers time and increase their productivity. Passengers would also benefit from flights to new destinations, removing the need to wait for transfers at airports outside the UK.
The report said Heathrow's shortage of capacity meant it was falling behind European competitors such as Amsterdam and Frankfurt airports and that over the last 20 years Heathrow had fallen from being the leading airport in Europe by destinations served to fifth place.
BCC director general David Frost said: "This comprehensive study clearly outlines the economic benefits of expanding Heathrow - an important part of the debate which too few people fully understand.
"Connectivity is vital to the UK economy as businesses seek to develop new global opportunities that will allow them to generate wealth and jobs. Without additional capacity at our major hub airport, we will continue to fall behind our continental competitors."
CBI director general Richard Lambert welcomed the report, while TUC general secretary Brendan Barber said Heathrow expansion would "help safeguard jobs and the UK economy".
Reader views (4)
Its going to have to be a big number as the class actions against the aviaion lobby and government for the signifiant ill health associated with this operation will swamp any profits. if i were a shareholder i would be running away from aviation and looking at mass high speed rail and other futureproof transpor options
- Christian Ball, London UK, 15/07/2009 11:43
Report abuse
According to this grossly biased report the answer to all UK financial problems is solved.
Go ahead muppets - just build another 500 airports across the UK, each allegedly producing GBP500,000,000 benefit to the UK economy every year - and see how such tripe squares with Milibanana's views on further alleged climate change and global warming spin and waffle, smoke and mirrors.
HYPOCRITES THE LOT OF THEM.
- Reuben Camara, Republic of Morecambe, UK, 14/07/2009 06:18
Report abuse
I wouldn't expect the umbrella body for all interested parties to say otherwise, so let's have an independent opinion.
- Dave Davies, Basingstoke, Hants, 13/07/2009 16:59
Report abuse
This report was commissioned by big business to represent the short-term benefits to big business. It conveniently overlooks the costs that will be picked up by those of us who aren't part of this cosy collaborative clique - the social, environmental and tax costs of allowing yet more planes to use Heathrow. What price stopping climate change?
- Austen, London, 13/07/2009 14:06
Report abuse
