Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Streeting backs Burnham as ‘King of the North’ calls for ‘orderly’ transfer of power

      Andy Burnham delivering a speech at a public event, wearing a suit and tie, addressing an audience with a serious expression.

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Monzo taps into English cricket with The Hundred sponsorship

      Getty Images logo with abstract design elements in a news/business context

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Nestle launches probe over ties to sanctioned Russian propaganda channel

      Nestlé's brands include KitKat chocolate, Häagen-Dazs ice-cream and Nespresso.

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Friday 15 January 2016 5:53 am

Let local leaders rule on infrastructure projects

By: Caitlin Morrison

Add as a preferred source on Google

We will have to wait until at least the summer before the government is ready to make a decision on airport expansion. Would you be surprised if it finds some reason to put it off again?

No full-length runway has been built in the south east since the Second World War, and the continuing delay is a disaster for London. Not only is the capacity crunch already restricting trade growth, but this is yet more evidence that small groups of Nimbys are capable of capturing the levers of power.

This is a problem of successive governments’ own making. However many expert panels they assemble to “take the politics” out of big infrastructure decisions, they still bolt at the fence when it’s time to choose.

Centrally planning projects in Whitehall has this effect. When the benefits of development are dispersed across the country but the downside is concentrated on a small area, it’s far easier to prevaricate until after that coming election or tricky vote in parliament to keep angry and motivated groups of voters or MPs happy, especially when the government of the day has a small majority.

But there is an elegant solution: devolve both decisions on infrastructure projects and the upside associated with them (particularly growth in tax receipts) to the local council level.

The chancellor is already devolving business rates, incentivising councils to pursue business-friendly policies in order to grow their local tax base. Giving residents more of the benefits of new runways would surely have the same effect.

Would you mind having an airport on your doorstep if, as a result of development, you paid zero council tax or even received a rebate? There would be complications, but there is no reason councils cannot be trusted with decisions on projects of national importance.

First, this is not a command economy and it’s vital there is strong local support for development. Second, assuming council incompetence is self-fulfilling. If they have no power, they will indulge in trivialities. Finally, councils may well have a greater sense of perspective than authorities with wider responsibilities.

Plans to expand London City Airport have not hit the buffers because of Newham Council (which supports the proposal), but because the mayor of London decided to veto planning permission.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

Trending Articles

  • Starmer will resign, Trump says

  • FTSE 100 Live: Stocks rise after ‘encouraging progress’ in US-Iran talks and Starmer resignation

  • Who could be Andy Burnham’s Chancellor? 

  • Judge rejects Gatwick Airport bid to block new relaxed runway slot rules

  • Kaleb Cooper: Brits don’t care about the price of milk 

More from CityAM

  • Fuse boss attacks planning rules as a ‘self-imposed bottleneck for growth’

    Energy
    UK industrial electricity prices are the highest in the G7 and 46 per cent above the average of the International Energy Agency.
  • Carbon markets must industrialise or the net zero transition stalls

    Partner
    Close-up of a sapling at Aranya Reforestation site in India, showcasing efforts in sustainable forestry and ecological res...
  • Argan, Inc. Declares Regular Quarterly Cash Dividend of $0.50 Per Common Share

    Business Wire
  • Let’s help London’s £53.5bn airport investment opportunity take off

    Opinion
    Commercial airplane flying in clear blue sky, representing aviation news and current trends in the airline industry.
  • Andy Burnham ducks ‘fiscal rules exam’ despite pledge to stick to them

    Politics
    Andy Burnham speaking at a Labour Party event, addressing current political issues, with a focused and determined expression.
  • British pensions are about to bankroll the American tech revolution

    Opinion
    SpaceX Falcon 9 rocket launching into a clear sky during May 2026 mission, showcasing advanced aerospace technology
  • Why can the Faroe Islands build faster than Britain?

    Opinion
    Underwater roundabout in the Eysturoy Tunnel, featuring modern engineering and design, credit Getty Images
  • ‘Dire’: Rapid decline in construction as sector slashes jobs

    Economics
    Construction workers building a residential complex, symbolizing Labours push for renters rights legislation

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies