Partial commitment on UK airport capacity does not reassure global investors

Partial commitment on UK airport capacity

James Stamp, global head of aviation at KPMG, comments on Governments latest announcement on the decision about new runway capacity

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James Stamp, global head of aviation at KPMG said:   

“Now, more than ever, UK plc needs to demonstrate both its ability and willingness to connect to trading partners and investors in the rest of the world. This is the right time to send a strong message that we are open for business.

“Unfortunately, while the cabinet commitment to a specific scheme is positive, there is still significant uncertainty about when it will be formally approved, including the timing of a final vote by MP’s. Delays in actually committing to construction sends a somewhat indecisive message to business and global investors. In the U.K., it means businesses still can't really plan. To the rest of the world, this country looks unable (or unwilling) to move forward with real pace and vision.

“The debate about new runways in the UK has not just about where to lay 3000 metres of concrete; it’s fundamentally about how we secure our future economic prosperity. The reality is stark: currently London is not directly connected to 128 of the biggest cities in the world; we lack connections to 194 of the 309 cities that will have populations over two million in 2030; and our competitors already connect to 41 of these global growth engines.  

“A truly positive statement would have gone a long way to alleviate the concern that we are missing those global connections that are now so important for business, jobs, and growth. However, the partial commitment does nothing to really reassure investors that we are moving forward to establish our place in a post—Brexit world.”

ENDS

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