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£6bn ‘black hole’ in Heathrow expansion

Heathrow denied that the comments by the government represented a blow to the third runway plan
Heathrow denied that the comments by the government represented a blow to the third runway plan

Plans to expand Heathrow airport were dealt a blow yesterday when the government confirmed it would not pay for new road and rail links, leaving a £6 billion “black hole” in the proposals.

The Department for Transport said it expected the airport to “meet the costs” of any surface access works needed if a third runway was approved.

Official estimates drawn up by the Airports Commission suggested that £5.7 billion would have to be spent on works such as tunnelling the M25 under the runway and widening the M4. Other projects would include diverting a number of local roads and creating a new southern rail link from the airport to London Waterloo, Surrey, Hampshire and the south coast.

It had been thought that the government would finance rail and road schemes, with Heathrow investors covering the £14 billion third runway.

However, Robert Goodwill, the aviation minister, said that all surface access costs would fall on Heathrow.

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The comments were seized upon by Gatwick, the West Sussex airport which is also vying to build an additional runway. It said the move would create a “£6 billion black hole at the heart of Heathrow’s plan”. It is claimed that additional costs may be even higher than the commission suggested, with Transport for London estimating that new rail and road links would actually require £20 billion.

Yesterday, Heathrow denied that the comments represented a blow to the third runway plan, insisting that costs had been overestimated and only £1 billion of public money would be needed for access upgrades.

However, Adam Afriyie, the Conservative MP for Windsor, who is opposed to Heathrow expansion, said: ““If Heathrow won’t pay and the government won’t pay, then the third runway is already dead in the water and it would be foolhardy for the government to choose Heathrow expansion.”

The Airports Commission, which was led by Sir Howard Davies, recommended that Heathrow should be allowed to build a third runway because it delivered more economic benefits to the nation. It effectively ruled out proposals for a second runway at Gatwick. The prime minister has said that a decision will be made by the end of the year.

Answering a parliamentary question yesterday, Mr Goodwill said: “In terms of surface access proposals, the government has been clear that it expects the scheme promoter to meet the costs of any surface access proposals that are required as a direct result of airport expansion and from which they will directly benefit.”

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The DfT insisted that the comment did not represent a U-turn, saying that its aviation policy framework, published in 2013, made similar conclusions.

Last night it was reported tha t Heathrow airport is in talks with the Scottish National P arty to improve its air links to Scotland in an attempt to secure the support of the nationalist party’s 56 MPs ahead of a potential House of Commons vote on the third runway.

The SNP, which is now the third-largest party in the chamber, could hold the key if David Cameron subsequently puts the decision to a final Commons vote.

Lobbyists from Gatwick and Heathrow are at the SNP conference in Aberdeen, with Heathrow paying for large banners in the main lobby of the Exhibition and Conference Centre.