Economy 'boosted £30billion' from Heathrow third runway

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".