As Britain wakes up after the most closely fought election in generations, one of the most pressing issues for the next government will be how to address the UK’s chronic shortage of airport capacity.
Sir Howard Davies’ Airports Commission is due to report shortly and we gained a clear insight into each party’s thinking in their election manifestos.
Labour made the most decisive statement, saying: “Following the Davies Review, we will make a swift decision on expanding airport capacity in London and the South East, balancing the need for growth and the environmental impact.”
The Conservatives were less emphatic: “We will deliver on our National Infrastructure Plan and respond to the Airports Commission’s final report.”
Of the parties that could hold the balance of power, the Scottish National Party indicated it would support airport expansion, but the Liberal Democrats said: “We remain opposed to any expansion of Heathrow, Stansted or Gatwick… we will ensure no net increase in runways across the UK.”
Any party serious about delivering jobs, growth and economic prosperity must consider airport expansion.
Expanding Heathrow will deliver £112bn-£211bn in economic benefits, by the commission’s own estimates – by far the most significant of any of the proposed solutions.
I will declare an interest: SEGRO owns 19m sq ft of commercial space within 10 miles of Heathrow, home to 800 businesses. We are also the dominant industrial landlord in and around Gatwick, and it is this and our customers’ detailed knowledge that allows us to understand the arguments put forward by both.
Export growth and keeping the economy competitive are at the heart of Heathrow’s case: 40% of the value of all Britain’s exports are transported in the bellyholds of planes leaving the airport. We also support expansion of Gatwick – but it cannot deliver the same economic impact.
While Britain has dithered, rivals in Dubai, at Amsterdam’s Schiphol, Frankfurt and Paris’s Charles de Gaulle have expanded. We also have to consider the counter-effect of not addressing airport capacity – that Britain’s role in world trade would shrink.
If we choose to expand Heathrow, we can help British exporters to compete in a global market, and it will not only be London and the South East that benefit. The Airports Commission expects 179,800 jobs to be created by 2050 if Heathrow expands, with 108,100 outside London and the South East owing to better connectivity with regional airports.
The benefits are recognised by SEGRO’s customers, the wider London business community and a number of key regions across the UK.
A survey of SEGRO customers that between them employ 20,500 people, published in March, showed that 84% supported expanding Heathrow over Gatwick, with 96% agreeing that airport expansion could be beneficial to businesses operating in the local area.
Another survey published by London First on 15 April showed that 59% of its members favoured Heathrow as the location for another runway in the South East, with 25% choosing Gatwick.
Some 89% of London First members said politicians should take swift action on the commission’s choice, and it is on this point that I want to conclude.
The bigger question is: what type of country does Britain want to be? Do we want to be a global player, operating seamlessly for business, helping exporters to grow and attracting inward investment? Or do we want to play second fiddle to our European hub rivals?
David Sleath is chief executive at SEGRO
