Delaying Tactics

After much debating, many angry business community voices and plenty of news coverage nationally, the time was here. However, now the government has announced that the decision between expansion at Heathrow vs. Gatwick will be postponed until Summer 2016…

 

Gatwick or Heathrow: the decision was within reach. However the government announced in early December that they needed more time to investigate in more detail the environmental impact of a new runway at Heathrow. Although plenty of business and union leaders will likely be hugely frustrated at yet another delay, it means that expansion at Gatwick will not be ruled out until another review. The verdict will now be given in Summer 2016.

Stephen Oliver, Partner at Vail Williams’ Gatwick office, explained that the failure to make a decision over the possible expansion of Gatwick airport will put on hold even more business development plans: “The government needs to stop procrastinating and make a decision. This uncertainty is making it so difficult for businesses to plan ahead. We are aware of a number of property transactions that have stalled in the last 12-18 months due to the uncertainty over expansion at Gatwick. With another six months likely to pass before we hear any progress, it’s hard to think even more deals won’t get caught up in this frustrating holding pattern.

Stephen added: “We need to know one way or another. Even if the Gatwick expansion is refused, at least it would give the certainty businesses need to get their property arrangements in order, now they finally know the lie of the land. There may be new arrivals too, attracted by the settled conditions of a strong region.”

It wasn’t all bad news to everyone though. Gatwick Airport CEO, Stewart Wingate responded to the Government’s decision to postpone, again taking the opportunity to point out the clear benefits of an expansion at Gatwick: “We are glad that the Government recognises that more work on environmental impact needs to be done. Air quality, for example, is a public health priority and obviously the legal safeguards around it cannot be wished away.

“Even Heathrow’s most vocal supporters must now realise a third runway at Heathrow will never take off as the environmental hurdles are just too high. If they want Britain to have the benefits of expansion and competition they should now look to Gatwick. Expansion has been in a holding pattern for decades. Momentum is now behind Gatwick as it becomes ever clearer that it is the obvious solution. We will continue to work closely with Government to take forward our plan which is legal, affordable and can actually deliver for Britain.”

Coast to Capital LEP also welcomed the announcement. Tim Wates, Chairman of Coast to Capital, recently wrote to the Prime Minister urging him to consider a second runway at Gatwick, instead of Heathrow. He said: “It’s clear from research that expanding Gatwick would cost half as much as expanding Heathrow and requires no public funding. It will stay well within EU air quality limits, even after expansion, and would result in far fewer people being affected by noise than at Heathrow.

“It is essential that over the coming months that we work closely with the business community and our partners to continue to highlight to Government that Gatwick is the best option for this area and the UK.”