Third Heathrow runway 'worth £1bn a year to UK'

The British economy loses £1 billion every year that it postpones construction of the third runway at Heathrow Airport, a troubling new report has warned.

With the UK still in the midst of a recession, the British Chamber of Commerce (BCC) found that the country is squandering billions of pounds in lost productivity and competitiveness.

Its warning comes as environmental campaigners – backed by the opposition Conservative Party – continue to oppose capacity expansion at the hub.

If the third runway is built it will deliver up to £12.8 billion in increased productivity, the report concluded, on top of £20 billion in wider economic benefits.

That boost will come from a variety of sources including higher employment and an influx of overseas business interests. Shorter delays and more frequent flights would also enhance the experience of the 68 million people who use Heathrow each year.

But at present, the report said the airport is losing out to other European hubs such as Amsterdam Schiphol, costing the economy as much as £1.1 billion annually.

"This comprehensive study clearly outlines the economic benefits of expanding Heathrow," asserted David Frost, Director General of the lobby group.

"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."

The Commons Transport Committee recently said that extra capacity at Heathrow could also be used to reduce plane 'stacking', or circling, above the capital's skies.

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