Businesses have started to lose confidence in the government to make tough decisions on the UK’s infrastructure following the delayed decision on airport expansion, according to the Federation of Small Businesses (FSB).

Speaking today at a media briefing before the GTMC’s AGM in central London, Matt Jaffa, senior development manager from the FSB, said he expects a decision to be made this summer but the delay in choosing to expand Heathrow or Gatwick last November has damaged business confidence.

“Because the government so badly managed the decision, businesses have started to lose confidence in other decisions that they make.

“Business confidence will suffer and as a result stock markets will suffer. It’s now a very much politicised decision,” he added.

Jaffa said members of the FSB, which has a politically neutral stance, are “crying out” for more capacity to help drive an export-led recovery.

“We are already seeing businesses suffer and if we don’t make this decision soon we will lose out to the Schiphols and Frankfurts who have the capacity to grow,” he said.

Over the past year Heathrow has seen many heavyweight politicians stand against expanding the airport including mayoral hopefuls Sadiq Khan, Zac Goldsmith and Boris Johnson. Earlier this week, the airport attempted to give its environmental credentials a boost by unveiling plans to invest £105 million in creating green spaces around the airport.


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