THE North-East is losing £115m every year Heathrow is not expanded, according to business leaders.

A study by the British Chambers of Commerce (BCC) claims that the failure to build a third runway at the London hub is costing the country £1bn a year – with more than ten per cent of the loss occurring in the North-East.

According to the BCC, the expansion could be worth up to £30bn to the country over 60 years.

The report, called Economic Impacts of Hub Airports, says a third runway would save business passengers time and increase their productivity by reducing delays and increasing the frequency of flights.

Passengers would also benefit from flights to new destinations, removing the need to wait for transfers at airports outside the UK, it is claimed.

David Frost, director general of the BCC, said: “The UK is a trading nation. We need to get our business around the world, and this report shows that Heathrow is the key to that.

“What’s happening at the moment is that the regional airports are closing their links to Heathrow.

“The expansion would allow businesses in the North-East and elsewhere to have very much greater access to Heathrow and, therefore, to markets around the world.”

Mr Frost said that the economic benefits would occur even if highspeed rail links to the North were built.

“It’s not an ‘either or’ situation – we need both the high-speed rail and the third runway,” he added.

The report says that the airport has been left behind by its rivals in serving the growing economies of Brazil, Russia, India and China.

The number of UK regional cities it serves has fallen from 21 to six, it adds.

Brendan Barber, general secretary of the Trades Union Congress (TUC) last night welcomed the report’s findings.

He said: “By making clear the business benefits of airport expansion, it backs up the TUC’s view that, within very strict environmental limits that are rigorously scrutinised and enforced, it can help safeguard jobs and the UK economy. Doing nothing is not an option.”

However, Shadow Transport Secretary Theresa Villiers said the report failed to address the “huge cost impact of the environmental damage that would be caused by a third runway”