Heathrow runway could lose UK £9 billion says report

Uses Government's own methodolgy to suggest that building a third runway at Heathrow would result in a net £9 billion loss to the UK.

A new report by the Aviation Environment Federation shows that a third runway at Heathrow could COST the UK over 60 years and not provide the claimed £147 billion.

The report comes just after Gatwick published a 50-page document that rubbished virtually the entire process and final report of the Airports Commission.

According to the AEF, the Airports Commission has claimed, and the media has uncritically repeated, that a new runway at Heathrow would deliver ‘up to £147 billion’ benefit for the UK.

But this figure is based on analysis that takes no account of the environmental or surface access costs of expansion.

Indeed, the Commission’s own specialist economic advisers have criticised the analysis for double counting and questionable assumptions in relation to the indirect benefits associated with increased seat capacity.

The results generated by using the Government’s methodology for cost benefit analysis meanwhile, are dramatically different: the Commission’s own figures, based on this methodology, suggest that building a third runway at Heathrow would result in a net £9 billion loss to the UK once all environmental and surface access costs are included.

With some ‘wider economic benefits’ included, the benefit over sixty years would still be only £1.4 billion, as quoted in the Commission’s final report.

In the AEF briefing on the economic impacts of airport expansion, they look at how the Commission has presented its analysis of the costs and benefits of a new runway.

AEF has also published an assessment of whether the Airports Commission addressed their earlier concerns regarding a ‘carbon gap’ in the Commission’s analysis.

N.B. Image credit: telegraph.co.uk

Internet links

The Airports Commission’s economic fudge: How the economic case for expansion dissolves once climate change limits are accounted for

The Airports Commission’s final report – has it closed the carbon gap?

UK Government Transport Analysis Guide