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2 FEBRUARY 2015

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Article from BTNews 2 FEBRUARY 2015

Birmingham v Airport Commission

The Airports Commission’s research on the effect of runway expansion on UK regions could be flawed, according to new analysis.  Whilst it is mandated with taking a “UK-wide perspective,” new analysis has questioned whether it has properly investigated the potential economic effect on the country’s regions of the shortlisted runway options.
 
A study by economic analysts Oxera, commissioned by Birmingham Airport, says that the methodology used by PwC on behalf of the Airports Commission could hide winners and losers in UK regions, and underplays the negative effect that Heathrow expansion could have on some UK regions.
 
Oxera explains that this is because, rather than modelling what could happen to the Midlands and other UK regions under the Heathrow and Gatwick scenarios, PwC split the UK into three large blocks: London & the South East, the Rest of England, and the Rest of the UK.

The Oxera analysis says that: “A more relevant question for analysis which could have been asked by the Airports Commission and PwC is where the national losses and gains are accrued and how they are distributed.”  Oxera concludes that Heathrow expansion would be more likely to exacerbate rather than mitigate regional imbalances, by drawing more business into the London area.  www.gov.uk/government/uploads/system/uploads/attachment_data/file/374660/AC05-forecasts.pdf

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