The final decision on whether to develop a third runway at Heathrow will be made in the summer, the UK Government has confirmed.

The announcement was made after a meeting with the Airports Sub Committee on 10 December.

In its three shortlisted schemes, the Airports Commission published detailed analysis on air quality and greenhouse gas emissions.

It will now develop the 'best possible package' of measures to mitigate the impacts on the pubic and the environment, including a package for local communities to include compensation, maximising local economic opportunities through new jobs and apprenticeships, and measures to tackle noise.

Transport Secretary Patrick McLoughlin said: "The case for aviation expansion is clear – but it's vitally important we get the decision right so that it will benefit generations to come. We will undertake more work on environmental impacts, including air quality, noise and carbon.

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"We must develop the best possible package of measures to mitigate the impacts on local people. We will continue work on all the shortlisted locations, so that the timetable for more capacity set out by Sir Howard is met."

However, while the government faces a challenge to deliver this capacity, the move to delay making a decision until summer has been criticised by CBI Director-General, Carolyn Fairbairn.

Calling the delay 'deeply disappointing', Ms Fairbairn emphases that while it is essential environmental conditions are met, the Airports Commission has spent three years analysing impartial evidence.

"We urgently need to increase our runway capacity to spur trade growth, investment and job creation. Just eight new routes to emerging markets could boost our exports by up to £1 billion a year," she said.

"But by 2025 - the earliest a new runway would be built - London's airports could already be operating at full capacity and the longer we wait the further we fall behind the likes of Amsterdam and Paris. If we don't have a new runway up and running by 2030 the cost to the UK will be as much as £5.3 billion a year in lost trade to the BRICs alone.

"It is of course essential that environmental conditions are met. But the Airports Commission spent three years analysing impartial evidence, at a cost of £20 million, and the National Infrastructure Commission was set up just two months ago to take an evidence-based approach to our needs. We cannot fall into the habit of simply commissioning new evidence, instead of the Government taking the tough decisions needed at the end of the process."

(LM/CD)