Airport runway delay ‘could cost UK £5bn’

'We need this decision on airport capacity to be taken quickly. It is urgent and not optional'

Aerial view of planned third runway at Heathrow (PA)

Delaying the hugely controversial decision on expansion of UK airport capacity could cost the economy more than £5bn, the head of the Confederation of British Industry (CBI) warned.

The business lobby group’s new director-general, Carolyn Fairbairn, accused the Government of “a real failure of leadership” because ministers are poised to postpone their decision on airport growth – which was originally due by the end of this year – for at least six months.

The Airports Commission, led by Sir Howard Davies, said in July that it preferred a plan for a new runway at Heathrow over the extension of Heathrow’s existing northern runway, or building a second runway at Gatwick.

But any decision to go with Heathrow will be a political embarrassment for David Cameron, who pledged before the 2010 election to oppose a third Heathrow runway with “no ifs, no buts”. It will also undermine the Conservative Zac Goldsmith’s bid to succeed Boris Johnson as Mayor of London next May. Mr Goldsmith, the MP for Richmond Park, has been a consistent opponent of Heathrow expansion.

The Government is also understood to be concerned by potential legal challenges about the environmental impact of a third runway at the west London airport, because pollution levels in the area already breach European safety limits. Ms Fairbairn said: “A failure to have new a new runway up and running by 2030 will cost the UK as much as £5.3bn a year in lost trade to the Bric countries [Brazil, Russia, India and China] alone.”

She told the BBC: “It feels like a real failure of leadership. We need this decision to be taken quickly. We really need a decision on airport capacity, it’s urgent and not optional.”

Her comments come after the CBI’s president, Paul Drechsler, urged ministers to “get on with it” and “not duck infrastructure decisions”.

Heathrow, which is running at full capacity, claims that a third runway would add £100bn to the economy and create 120,000 jobs.

The commission’s report on the new £23bn runway is calling for further night flight restrictions, a noise levy and a legal commitment to protect air quality.