London Airports - The UK chancellor has insisted a decision on new airport capacity in south-east England will come this autumn

The UK chancellor has insisted a decision on new airport capacity in south-east England will come this autumn, saying it has taken “longer than many people would have liked” for the government to make up its mind.

Philip Hammond was speaking at London City airport after the government gave the go-ahead for a ￡330m expansion, as part of efforts to boost investment in the UK after June’s Brexit vote. 

Neither Mr Hammond nor Lord Ahmad, the aviation minister, gave a date for a decision on the bigger airports. Ministers are considering three options: lengthening of one of Heathrow’s two existing runways, a third runway at Heathrow and a second runway at Gatwick airport.

Airport capacity in south-east England was an “important driver” of the UK economy, Mr Hammond said. “We need to make a decision on this and that we will do in the autumn.”

Ministers have been repeatedly criticised for failing to reach a decision on airport capacity, despite a clear recommendation last year by the Airports Commission for a new runway at Heathrow.

Mr Hammond acknowledged the recommendation of the commission, chaired by Howard Davies. The commission considered the new Heathrow runway plan alongside alternatives such as Gatwick expansion or new capacity at Stansted, north-east of the capital.

However, the chancellor added that the recommendation had come with the proviso that air quality around Heathrow was a “very important issue”, as was noise.

“The decision was taken to go back and do some more work on the air-quality issue and the sustainability of the air quality standards that would be required,” Mr Hammond said.

That work had been completed and was being studied ahead of the decision.

“I know that it’s taken longer than many people would have liked but it’s important to get this right,” Mr Hammond said.

The owners of Heathrow and Gatwick, both controlled by consortiums of global investors, have been engaged in a lobbying. Gatwick argues that a second runway at its facility would be easier to build than a third at Heathrow and that noise and pollution there would affect fewer residents.

Heathrow argues — in line with the Airports Commission recommendation — that its expansion is vital to maintain the airport’s status as the UK’s only international aviation hub.

The planning permission for City airport in London’s docklands will allow it to build an extended terminal, a new taxiway and additional standing spots for aircraft.

Declan Collier, the chief executive, said the expansion would allow the airport to handle new, larger aircraft such as Bombardier’s C Series. It hoped to introduce longer-haul flights to destinations such as Russia, India and Canada.

Heathrow airport welcomed the news on City airport. “We look forward to a final government decision on the Airports Commission’s clear recommendation for a third runway at Heathrow,” it said.