Government Defers Heathrow Runway Decision

3.44.43pm GMT Mon 8th Dec 2008

The Government has postponed its decision on the Heathrow third runway until after the New Year.

It is believed that the government is worried about a legal challenge either over the consultation process or its interpretation of the European laws governing pollution limits.

Vincent Cable said: "it is obvious that the government is in trouble over Heathrow expansion. Politically it faces a united front of hostility form the two main opposition parties and a likely reversal of any approval. Economically, the recession is undermining the business case. Legally, there were serious flaws in the consultation process".

"My judgement is that the government will still give the green light for the third runway in the New Year. But it is looking increasingly implausible that the project will proceed. I think it is much more likely that the airport company will go for the softer, less controversial option of ending runway alternation which would have a bigger impact on our part of London than the new runway. We must therefore be vigilant".