Business leaders applied more pressure on the Government today over boosting the UK's airport capacity, warning that billions of pounds could be lost every year if the decision is delayed.
The CBI warned the UK could lose up to £31bn in trade by 2030 because of the failure to increase flights to the BRIC - Brazil, Russia, India and China - countries alone, describing this as the 'tip of the iceberg'.
In addition the business lobby claim some £5.3bn and rising could be lost every year in trade with the BRIC nations beyond 2030.
The Airports Commission, which last week recommended building a third runway at Heathrow rather than expanding Gatwick, suggested the earliest new capacity could be delivered is 2026 however the CBI suggests there is a ‘broad consensus’ that 2030 is more realistic.
Katja Hall, CBI deputy director-general, said: ‘Our failure to increase flights to BRIC countries alone will cost the UK as much as £31bn in lost trade in the period it takes to build a new runway. That’s just from a lack of flights to the BRIC countries – just the tip of the iceberg.
'In fact, in 15 years, if we still don’t have capacity up and running, the cost of lost trade to the BRICs will reach up to an additional £5.3bn a year. If we get to this point, we could be paying in excess of £600,000 an hour in lost trade.
‘We welcome the prime minister’s guarantee that he will deliver a decision this side of Christmas. He is right to – delaying into 2016 is too late. We need to get the legal process underway before the end of the year, and Parliament needs to get behind it.
'If it does that, we could see spades in the ground by 2020, with a new runway online between 2025 and 2030 and the whole country reaping the benefits by 2040.’
Despite the backing of the £20m Airports Commission inquiry, the Heathrow plan will still face tough opposition from within the Conservative Party.
Home secretary Theresa May, foreign secretary Phillip Hammond and London Mayor and MP for Uxbridge and Ruislip South Boris Johnson are all lined up to oppose the plan.
Michael Dugher MP, Labour’s shadow transport secretary, said: 'The CBI is right – more dither and delay over expanding our aviation capacity will cost the UK economy billions of pounds.
'Labour supports more airport capacity. It is vital to Britain’s economic success and in maintaining our status as Europe’s most important aviation hub. That’s why we have called on the Government to take a swift decision to back Sir Howard Davies’ proposals as long as some key economic and environmental tests can be met.'
The figures are based on research for the CBI’s 2013 Trading Places report, which estimated the additional trade per average flight to a high growth market – figures have been revised up for inflation.
