Lack of third runway at Heathrow 'harms' economy, says MP Aviation group

RESTRICTIONS on capacity at London Heathrow is limiting Britain's economic potential, according to an ad hoc parliamentary aviation group, whose statement comes on the heels of a government rejection for a third runway.

The All Party Aviation Group said efforts should be made "to ensure the UK retains and grows hub capacity" at Heathrow or a new purpose-built hub airport, reported BBC News.

While finance minister, Chancellor George Osborne, said the government understood there was a need for additional capacity, the transport minister Justine Greening said the government remained opposed to a third runway at Heathrow.

The governing coalition between the Conservative and Liberal Democrats is divided on the issue, which rules out any expansion of Heathrow before the next election. Opposition Labour also opposes a third runway.

The All Party Aviation Group, which brings together MPs from across the parties with an interest in aviation but has no formal parliamentary role, said the UK was being left behind on aviation capacity.

It has taken evidence from 60 organisations and its chairman, Labour MP Brian Donohoe, said the findings "advocate a new direction for UK aviation".

"In order to achieve the greatest possible economic and social contribution from aviation, we need two things from government: a forward-looking aviation policy that allows for aviation growth; and a new approach to the taxation of aviation," said Mr Donohoe.

"Combined, a new approach could not only energise the sector but also provide a firm foundation for the UK's economic recovery.