THE latest delay in making a decision on airport expansion has received widespread criticism.

Transport Secretary Patrick McLoughlin said the government needed to "undertake more work on environmental impacts, including air quality, noise and carbon" before deciding on how best to expand airport capacity in south-east England. A decision had been promised previously by the end of the year.

There are three options - a third runway at Heathrow, which business groups favour, a second runway at Gatwick Airport, or extending an existing runway at Heathrow.

Ross Smith, Director of Policy at the North East Chamber of Commerce, said: "It is incredibly disappointing. An expanded national hub is an essential requirement and Sir Howard Davies’ Report gave the right recommendation.

“Heathrow Airport offers the only option that brings benefits to all regions and nations of the United Kingdom, bringing capacity for exporters, investors and tourism sectors alike.

“It is especially important to the North-East as it is a key link for Newcastle Airport with approximately 500,000 passengers flying between the two airports annually, half of which are on business. It is also critical for the North East's £4bn tourism economy.

“We have known for years that a decision to expand airport capacity was needed. The economic benefits of a third runway at Heathrow Airport are way in advance of any other options so it is obviously frustrating that our Government cannot show a bit of leadership.”

"Businesses will see this as a gutless move by a government that promised a clear decision on a new runway by the end of the year," said John Longworth, director general at the BCC.

"Ministers need to stop prevaricating and get on with doing what the country sorely needs," he said.

The Institute of Directors (IoD) said business leaders would be "tearing their hair out" with frustration.

Labour's candidate to be mayor of London, Sadiq Khan, accused the Government of delaying a decision "to avoid embarrassing" their mayoral candidate Zac Goldsmith, who is against expansion.

"We can't afford more dithering over aviation capacity. Businesses desperately need more airport capacity around London, and the Tories are letting them down.

"Gatwick stands ready to deliver it sooner, at a lower public expense and without the damaging impact of Heathrow expansion," he said.

TUC General Secretary Frances O’Grady said: “Trade unions and businesses stand ready to work together to deliver the Heathrow expansion recommended by the Airports Commission. But while the government keeps delaying, the British people will lose out on new jobs, new apprenticeships and economic growth. And there is a big danger that the UK’s global position will slip while this crucial infrastructure for doing business with the world is delayed.”

Stephen Joseph, chief executive of the Campaign for Better Transport, insisted that the Government is right to consider the impact of aviation on the environment.

But he added: "We are disappointed that it has accepted the case in principle for a new runway without looking at alternatives, including a frequent flyer levy that would avoid the need for expansion at all.

"The cost of sufficiently improving surface access to avoid unacceptable congestion and pollution would be so high as to make airport expansion unaffordable. If the Government were truly serious about emissions and noise, it would abandon these plans for a new runway in the South East."