Third runway ‘buried’: how coalition affects London

Heathrow's third runway was "dead and buried" today after Labour was ousted from power.

The Conservatives and Liberal Democrats sealed their opposition to expansion at the west London airport in the coalition pact agreed last night.

The written agreement covers a string of issues crucial to the City and other Londoners which could influence Mayor Boris Johnson's chances of re-election in 2012.

On Heathrow, the Standard understands that Labour even offered to ditch the third runway plans as

Gordon Brown sought desperately to strike a deal with Nick Clegg to remain in government.

John Stewart, chairman of anti-Heathrow expansion group HACAN, said: "The third runway is firmly dead and buried.

"There will be rejoicing amongst the residents of west London and beyond.

"There is no possibility of a U-turn because of the coalition and also because both parties were so vocal in their opposition to it during the campaign."

Liberal Democrat MP Norman Baker, one of the most ardent parliamentary opponents of Heathrow growth, said: "This is perhaps for people in London the first fruit of the agreement."

Wealthy residents in the capital will be relieved that the Lib-Dem "mansion tax" on homes worth at least £2 million has been ditched.

The Tories have also promised to hold reviews before closing hospital departments in London and other parts of the country.

Proposed parking charges in Richmond Park and Bushy Park, both in south-west London, are now set to be dropped as they were opposed by both the Conservatives and the Lib-Dems.

How the capital will be affected

Tube

Boris Johnson has already launched a campaign to protect London's £39 billion 10-year transport funding settlement.

This covers Crossrail and the Tube, so any cuts could mean delays to repairs on the Jubilee, Piccadilly and Northern lines. But Chancellor George Osborne will have to find major cuts to tackle Britain's debt mountain. Business bosses have stressed the vital importance of upgrading key lines used by millions of passengers.

Crossrail

Business leaders in London were today looking for Chancellor George Osborne to confirm funding for Crossrail. Before the election, the Tories said they backed the west-to-east cross-London rail line.

But they stopped short of guaranteeing funds for the £16 billion scheme to ensure it is delivered by 2017. Vince Cable, the Liberal Democrats' Treasury expert, has already committed his party to Crossrail provided it does not run over budget.

Mayor

London Mayor Boris Johnson, left, was today in line to gain new powers. Under Tory plans he would become responsible for the capital's £1.1 housing billion budget and be handed control of Olympics legacy and the Royal Parks. City Hall would be able to appoint two directors of the Port of London Authority and have an "enhanced" role in rail franchises. The Tories want to hand the Metropolitan Police Authority's scrutiny role to the London Assembly.

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