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George Osborne says Heathrow third runway is an option George Osborne says Heathrow third runway is an option
(about 1 hour later)
George Osborne has not ruled out a third runway at Heathrow airport to help boost growth. Chancellor George Osborne has not ruled out a third runway at Heathrow airport to help boost growth, days after No 10 repeated its pledge not to build one.
The chancellor told BBC One's Andrew Marr Show more airport capacity was needed in the South East of England and "all options" should be considered. He told the BBC more airport capacity was needed in the South East of England and "all options" should be considered.
He said new measures to speed up the planning process and underwrite spending on big infrastructure projects would also be announced shortly.He said new measures to speed up the planning process and underwrite spending on big infrastructure projects would also be announced shortly.
Labour said tax breaks for businesses and a VAT cut were needed.Labour said tax breaks for businesses and a VAT cut were needed.
On Tuesday, Downing Street dismissed an outspoken attack by senior Tory backbencher Tim Yeo who challenged Prime Minister David Cameron to show if he was "man or mouse" and defy his critics by reversing policy on Heathrow.On Tuesday, Downing Street dismissed an outspoken attack by senior Tory backbencher Tim Yeo who challenged Prime Minister David Cameron to show if he was "man or mouse" and defy his critics by reversing policy on Heathrow.
A spokesman said: "The coalition parties have made a pledge not to have a third runway and that is a pledge that we will keep. We don't see the argument for a third runway."A spokesman said: "The coalition parties have made a pledge not to have a third runway and that is a pledge that we will keep. We don't see the argument for a third runway."
And Foreign Secretary William Hague, speaking to Sky News on Sunday, also ruled out a change of policy.And Foreign Secretary William Hague, speaking to Sky News on Sunday, also ruled out a change of policy.
"The circumstances have not changed... it's important to stick to that election promise. It's important to make the right decision about this and study all the options."The circumstances have not changed... it's important to stick to that election promise. It's important to make the right decision about this and study all the options.
"We said very specifically we would not be (building a third runway).""We said very specifically we would not be (building a third runway)."
'Fighting spirit''Fighting spirit'
But Mr Osborne told Andrew Marr extra runway capacity was needed in the South East of England and "then it is a question of where it should go - Heathrow, a new estuary airport, Stansted, Gatwick - people have lots of different options.But Mr Osborne told Andrew Marr extra runway capacity was needed in the South East of England and "then it is a question of where it should go - Heathrow, a new estuary airport, Stansted, Gatwick - people have lots of different options.
"What I would say is - let's examine all the options, let's do it now, let's make sure we can create a political consensus.""What I would say is - let's examine all the options, let's do it now, let's make sure we can create a political consensus."
He added: "I understand all about the local pressures but you have got, as a nation, to be able to overcome those and make a sensible decision about where that extra runway capacity in the south-east should be."He added: "I understand all about the local pressures but you have got, as a nation, to be able to overcome those and make a sensible decision about where that extra runway capacity in the south-east should be."
A consultation on future air capacity in the South East of England has twice been delayed amid reported divisions within the coalition and Conservative ranks.A consultation on future air capacity in the South East of England has twice been delayed amid reported divisions within the coalition and Conservative ranks.
On Sunday, Scottish Conservative leader Ruth Davidson added her voice to those backing a third runway at Heathrow, arguing the move is in Scotland's economic interests.On Sunday, Scottish Conservative leader Ruth Davidson added her voice to those backing a third runway at Heathrow, arguing the move is in Scotland's economic interests.
But the Lib Dems have rejected any expansion of the airport - which was explicitly ruled out in the manifestos of both coalition partners.But the Lib Dems have rejected any expansion of the airport - which was explicitly ruled out in the manifestos of both coalition partners.
It comes as Mr Cameron has vowed to show "fighting spirit" as he prepares to announce a series of measures designed to promote economic growth.It comes as Mr Cameron has vowed to show "fighting spirit" as he prepares to announce a series of measures designed to promote economic growth.
Writing in the Mail on Sunday, he said a key part of economic recovery was "building the houses our people need".Writing in the Mail on Sunday, he said a key part of economic recovery was "building the houses our people need".
Labour said it would "look closely" at any planning reforms but said more needed to be done to kickstart the faltering economy and boost jobs, including "genuinely bringing forward infrastructure projects".Labour said it would "look closely" at any planning reforms but said more needed to be done to kickstart the faltering economy and boost jobs, including "genuinely bringing forward infrastructure projects".
Shadow business secretary Chuka Umunna said Labour would give firms a National Insurance break "to take on extra workers" and reverse the government's VAT increase "which would get money back into our economy".Shadow business secretary Chuka Umunna said Labour would give firms a National Insurance break "to take on extra workers" and reverse the government's VAT increase "which would get money back into our economy".
'Radical agenda''Radical agenda'
Mr Umunna also accused ministers of sending out mixed signals on planning, saying they had come up with a national policy framework for planning in March but "now they are going to throw all the chips up in the air".Mr Umunna also accused ministers of sending out mixed signals on planning, saying they had come up with a national policy framework for planning in March but "now they are going to throw all the chips up in the air".
He told the BBC's Andrew Marr Show the government needed to "make their minds up and stick to it".He told the BBC's Andrew Marr Show the government needed to "make their minds up and stick to it".
Mr Osborne insisted the government was not "tearing up" its national policy framework on planning, just introducing further measures to speed up the process when Parliament returns this week.Mr Osborne insisted the government was not "tearing up" its national policy framework on planning, just introducing further measures to speed up the process when Parliament returns this week.
He said ministers would be encouraging local authorities to use existing powers enabling them to build on Green Belt land if an equivalent area of land elsewhere is brought into the Green Belt.He said ministers would be encouraging local authorities to use existing powers enabling them to build on Green Belt land if an equivalent area of land elsewhere is brought into the Green Belt.
He warned that the country could not afford to wait years for new development at a time when the economy was struggling.He warned that the country could not afford to wait years for new development at a time when the economy was struggling.
"We have to do more and we have to do it faster," he told Andrew Marr."We have to do more and we have to do it faster," he told Andrew Marr.
"They are difficult times for the British economy, difficult times for the world but our economy is healing, jobs are being created, it is taking time, but there is no easy route to a magical recovery.""They are difficult times for the British economy, difficult times for the world but our economy is healing, jobs are being created, it is taking time, but there is no easy route to a magical recovery."
Influential Tory backbencher David Davis, who also backs a third runway at Heathrow, has meanwhile come up with his own plan to boost growth.Influential Tory backbencher David Davis, who also backs a third runway at Heathrow, has meanwhile come up with his own plan to boost growth.
The former shadow home secretary told the Sunday Telegraph it was not about individual policy areas and called for a "radical pro-growth agenda".The former shadow home secretary told the Sunday Telegraph it was not about individual policy areas and called for a "radical pro-growth agenda".
The Tory MP wants more tax cuts, school leavers to be encouraged to start their own businesses and more done to encourage banks to lend.The Tory MP wants more tax cuts, school leavers to be encouraged to start their own businesses and more done to encourage banks to lend.