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Heathrow delay is harming economy, MPs warn Theresa May Heathrow delay is harming economy, MPs warn Theresa May
(about 1 month later)
Theresa May faces the first big challenge to her fledgling premiership as 36 Conservative MPs, led by the former party chairman Grant Shapps, demand an urgent decision on Heathrow airport’s expansion, warning that continued delay is damaging the UK economy.Theresa May faces the first big challenge to her fledgling premiership as 36 Conservative MPs, led by the former party chairman Grant Shapps, demand an urgent decision on Heathrow airport’s expansion, warning that continued delay is damaging the UK economy.
Related: Brexit vote has bolstered Heathrow's fortunes, says airport chief
Along with five MPs from rival parties, the Tory backbenchers claim that confidence in the government’s ambition of growing international trade is being eroded. The MPs, who belong to the cross-party British Infrastructure Group, write in a report that “a decision is needed, to show the new leadership’s mettle”.Along with five MPs from rival parties, the Tory backbenchers claim that confidence in the government’s ambition of growing international trade is being eroded. The MPs, who belong to the cross-party British Infrastructure Group, write in a report that “a decision is needed, to show the new leadership’s mettle”.
It says: “This report concludes that the government must select the new hub as a matter of extreme urgency. The decision on EU membership has not altered this fundamental fact. We believe this choice should be one of the first across the new prime minister’s desk.”It says: “This report concludes that the government must select the new hub as a matter of extreme urgency. The decision on EU membership has not altered this fundamental fact. We believe this choice should be one of the first across the new prime minister’s desk.”
Shapps, who was the party’s co-chairman until 2015, said: “Following Brexit, this decision is all the more important. We need to show Britain is open for business.”Shapps, who was the party’s co-chairman until 2015, said: “Following Brexit, this decision is all the more important. We need to show Britain is open for business.”
Last year, the independent Airports Commission, led by Howard Davies, recommended building a third runway at Heathrow on condition of a ban on night flights, a legally binding cap on noise, acceptable performance on air quality and legislation to rule out ever building a fourth runway. The proposed 3,500-metre runway, north of the existing two, is estimated to cost £18.6bn but would mean 250,000 more flights a year, providing a £150bn boost to GDP over 60 years and 70,000 jobs.Last year, the independent Airports Commission, led by Howard Davies, recommended building a third runway at Heathrow on condition of a ban on night flights, a legally binding cap on noise, acceptable performance on air quality and legislation to rule out ever building a fourth runway. The proposed 3,500-metre runway, north of the existing two, is estimated to cost £18.6bn but would mean 250,000 more flights a year, providing a £150bn boost to GDP over 60 years and 70,000 jobs.
Following the publication of the Davies report, the government postponed its decision, first to October 2015, then to June. After the EU referendum result and David Cameron’s resignation, the then transport secretary, Patrick McLoughlin, stated that a decision would not be made until a new leader entered office. A decision now appears to be unlikely before October.Following the publication of the Davies report, the government postponed its decision, first to October 2015, then to June. After the EU referendum result and David Cameron’s resignation, the then transport secretary, Patrick McLoughlin, stated that a decision would not be made until a new leader entered office. A decision now appears to be unlikely before October.
May’s government includes several members who fiercely oppose Heathrow expansion. Earlier this month, a deleted web archive revealed that the new prime minister repeatedly attacked plans for airport development in west London, while serving in the shadow cabinet under Cameron in the late 2000s. May, the MP for Maidenhead, said her constituents faced the “prospect of a reduction in their quality of life with more planes flying overhead”.May’s government includes several members who fiercely oppose Heathrow expansion. Earlier this month, a deleted web archive revealed that the new prime minister repeatedly attacked plans for airport development in west London, while serving in the shadow cabinet under Cameron in the late 2000s. May, the MP for Maidenhead, said her constituents faced the “prospect of a reduction in their quality of life with more planes flying overhead”.
The MPs write that, while not dictating to the prime minister on whether to green light expansion at Heathrow or its rival Gatwick, the decision on how to increase capacity in south-east England is now urgent:“Either Heathrow or Gatwick must expand.If Heathrow does so, it will have to fulfil various pledges towards regional aviation, including new domestic routes and a £10m route development fund. If Gatwick expands, it has similar promises to fulfil, though on a smaller scale.”The MPs write that, while not dictating to the prime minister on whether to green light expansion at Heathrow or its rival Gatwick, the decision on how to increase capacity in south-east England is now urgent:“Either Heathrow or Gatwick must expand.If Heathrow does so, it will have to fulfil various pledges towards regional aviation, including new domestic routes and a £10m route development fund. If Gatwick expands, it has similar promises to fulfil, though on a smaller scale.”
The MPs say the government should also look to expand regional airports and cut airport passenger duty, which is “many times the rate of similar taxes in European competitors and trading partners such as the US. ”.The MPs say the government should also look to expand regional airports and cut airport passenger duty, which is “many times the rate of similar taxes in European competitors and trading partners such as the US. ”.
They add: “The tax rate is higher than in any other country except Chad.” Airport passenger duty (APD) hinders exports, distorts the market and hits small carriers hard. As the UK seeks to forge new trading relationships post-Brexit, we can’t afford to maintain any barriers to trade, including APD. BIG believes that a lowered rate, by boosting the wider economy, would eventually be cost neutral for the Treasury.”They add: “The tax rate is higher than in any other country except Chad.” Airport passenger duty (APD) hinders exports, distorts the market and hits small carriers hard. As the UK seeks to forge new trading relationships post-Brexit, we can’t afford to maintain any barriers to trade, including APD. BIG believes that a lowered rate, by boosting the wider economy, would eventually be cost neutral for the Treasury.”