Government's economic case for third runway at Heathrow is "flawed and misleading"

A new report published today undermines the economic case for building a third runway at Heathrow Airport. It shows that the Department for Transport (DfT) based part of its case for expansion on an Oxford Economic Forecasting (OEF) study commissioned by BAA, the company who own and manage Heathrow.

Unsurprisingly, the BAA funded study over- estimates the benefits of a third runway, assuming it would generate an extra 3 million business passengers contributing £400 each to the UK economy (making it worth £5billion over 70 years) - the DfT's original estimate was for half a million new business passengers spending around £120 each.

The new report, 'The economics of Heathrow expansion', produced by independent research and consultancy firm CE Delft for HACAN Clearskies, is critical of many of the conclusions of the OEF study for dramatically inflating the number of jobs created and the economic value to the country.

Speaking at the report's launch, former transport minister and London Mayoral candidate Steve Norris made the point that "The Government is pushing ahead with plans for a third runway without really understanding what that means for the economy. It seems that the OEF report is fundamentally flawed and that by relying on it the Government are misleading us over the need for a third runway at Heathrow.

"We are often told that a third runway is essential for the Capital's economy. But this report shows those benefits have been overstated by the Government and the aviation lobby. How can we compare the cost of valid alternatives, such as high-speed rail, if we are over-estimating the value of more runways?"

Read the CE DElft press release and key points summary

Read the CE DElft report