A THIRD runway at Heathrow airport could act as a gateway to the South West and boost the region's economy by £160 million a year, business leaders claim.

The British Chambers of Commerce singled out the region for being most likely to cash in on additional domestic flights to the capital, benefiting more than any part of the country outside London and the South East.

Additional regular flights from airports like Newquay, Exeter and Plymouth into a Heathrow "hub" would connect passengers to scores of international airlines, the BCC said.

It could also act as an easy route into the South West for tourists who may be put off by complicated connections between plane, train, car and London Underground.

Click here to read Matt Chorley's latest blog

However, last night environmental campaigners accused the BCC of "rehashing old arguments and peddling voodoo economics" to revive the controversial third runway plan.

The extra runway – which has been opposed by the Conservatives – could deliver £160 million-a-year for the South West in increased productivity and about £5.4 billion in wider economic benefits over 60 years, the report said.

Ministers approved plans for the third runway in January, sparking a furious backlash from green groups.

The BCC said the benefits of fewer delays and more regular services would include higher levels of employment and create more international links which are key to economic growth.

The UK loses between £900 million and £1.1 billion for each year building the runway is delayed, the report said.

Report author Paul Buchanan, from the economics and transport consultancy firm Colin Buchanan, told the WMN: "We see the regions as being the main beneficiaries of a third runway. Many of the regional airports have been dropped by Heathrow. The South West would do well because it has no flights into Heathrow at the moment and it is a long journey by train or car, so it would mean a big change in accessibility. It is just as much about getting overseas businessmen out to the regions. It's a two-way link."

Air Southwest, which flies from Plymouth, Newquay and Bristol, backed the idea of opening up additional slots at Heathrow. Commercial director Mike Coombes said: "Opportunities to secure domestic slots at Heathrow are extremely limited and although we continue to monitor the situation, any developments to increase capacity at Heathrow for regional air links are welcomed."

However, Plymouth and Newquay already benefit from "excellent air links" to the capital with up to four flights a day to London Gatwick and two to London City from both airports, he added.

Tim Jones, chief executive of Devon and Cornwall Business Council, said the region's business community would "warmly welcome" any investment in Heathrow, but not at the expense of investment in regional airports.

Other routes, including the railway mainline through Reading, need to be upgraded as much as building a third runway, he added.

"It would be difficult to justify how that amount of benefit would accrue for the South West economy."

CBI director general Richard Lambert welcomed the report, while TUC general secretary Brendan Barber said Heathrow expansion would "help safeguard jobs and the UK economy".

Anita Goldsmith, Greenpeace's senior transport campaigner, dismissed the report as "yet another PR stunt by the losing side" on the Heathrow third runway debate. Pointing to a poll which showed 95 per cent of businesses believed a third runway would make little or no difference to them, she added: "The BCC is rehashing old arguments and peddling voodoo economics in an increasingly desperate attempt to salvage a project that, it seems obvious to people in the South West and the rest of the country, will never get off the ground."

Shadow transport secretary Theresa Villiers said the report "fails to address the huge cost impact of the environmental damage that would be caused by a third runway".

Jamie Christon, managing director of Exeter International Airport, said: "We agree with the suggestion that enhanced air routes to the capital would be good for the South West economy and boost tourism.

"Improved capacity into a London hub airport is needed as the rail links to London are not likely to receive the infrastructure investment promised for other areas of the network.

"The operation of flights would be subject to an airline's strategy but we understand there is a great deal of public interest in an Exeter to London link."

Liberal Democrat transport spokesman Norman Baker said continued airport expansion was "an environmental disaster", but the Society of British Aerospace Companies said the report was "a welcome reminder of how vital aviation is to the UK economy".