Thursday 10 December 2015

Airports 'mess' is a political calculation that could ground UK economy

Ahead of the announcement tonight from the Government on how it will respond to the Airports Commission recommendations, London Chamber of Commerce and Industry (LCCI) has warned that any further delay could seriously impact on efforts to secure future investment for wider UK projects.

Colin Stanbridge, London Chamber of Commerce and Industry Chief Executive said: "The Prime Minister assured Parliament in July that a clear decision would be made on the final report of the Airports Commission by the end of this year. However the current speculation of a delay until next spring is deeply worrying and could have potentially damaging consequences.

"Heathrow is a privately-owned venture ready to develop a strategic asset of significant benefit to the whole UK - it would be incredible if government decided to delay their development plans. What message would that send to international investors currently looking at opportunities in major UK infrastructure? Why invest and then meet obstacles and hurdles?

"However, tonight there is another pressing challenge for Government to address - filling the capacity gap over the next decade. A new runway will not be operational until the mid-2020s, therefore ministers need to act now to put in place short-term measures to boost capacity within the next decade, such as:

• improved rail links to Gatwick
• increased early morning arrivals at Heathrow
• airfield and terminal enhancements at London City Airport

"LCCI has long advocated for both Heathrow and Gatwick to be given the go-ahead to expand as a means of futureproofing the UK economy. However, at the moment it appears that we have paralysis from the government in making any decision at all.

"I fear that the government's current approach on airports is an unnecessary 'mess' that perhaps owes more to political calculations related to next year's mayoral contest. However, those calculations could unintentionally ground the UK economy by eroding confidence and generating confusion among potential infrastructure investors."

ENDS

Media contact
Natalie Davison
T: +44 (0)20 7203 1897
M: +44 (0)7827 241528
E: ndavison@londonchamber.co.uk

NOTES TO EDITOR:

1. London Chamber of Commerce and Industry (LCCI) is the capital's largest and most representative business organization, with members ranging in size from multi-national companies to SMEs and sole traders.
2. Colin Stanbridge is available for further comment and interview.