Rethink is urged on airports strategy

Failure to deliver a strong aviation policy will hinder jobs and growth, said the report from the British Chambers of Commerce (BCC).

The Government could either “mark time and meander its way on” or come up with a long-term aviation policy that boosted businesses and economic recovery, the BCC said.

The Government has ruled out expansion at South East airports, which has meant scrapping Labour’s plans for an extra, third, runway at Heathrow.

Today’s BCC report, entitled Flying in the Face of Jobs and Growth, said current aviation capacity would not cope with the projected 335 million passengers at UK airports expected by 2030.

The BCC said the Government should increase both the range and frequency of flights, ensure there was sufficient airport and airspace capacity and keep air transport prices competitive.

The report recommended the scrapping of planned increases in the APD airport departure tax which had increased massively since 2007.

Analysis in the report showed that a five per cent year-on-year rise in APD could cost the economy at least £70m by 2015, £190m by 2020 and £660m by 2030; and reduce the number of jobs by as much as 25,000 by 2015, 71,000 by 2020 and 250,000 by 2030.

BCC director general John Longworth said: “The Government now has a simple choice. It can set a bold, long-term aviation policy that serves our businesses and boosts economic recovery. Or it can mark time and meander its way to a more anodyne result.”