The new coalition government announced that plans for a third runway at Heathrow Airport have been cancelled. There will also be no further expansion to Gatwick Airport and Stansted Airport.

If the plans for the runway at Heathrow had gone ahead, some local residents will have lost their homes. Naturally they are delighted by the decision. Residents of Sipson have benefited from the new government as Labour would have let the plans for the new runway go ahead.

The chairwoman of the No Third Runway Action Group was told that she had no hope of winning under a Labour government.

While many villagers are rejoicing, the village butcher in Sipson is taking a realistic view of the current situation. He said: "We’ve hardly any local customers left, as so many sold up for more than their homes are worth under the BAA bond scheme. It has ripped the heart out of the community. This government could be out in two years and we’ll have Labour back. What then?"

Though residents of the Heathrow area are pleased, the aviation industry does not have such a favourable view of the decision. BA firmly backed the third runway project, stating it would have an economic benefit to the travel industry.

The new coalition government has also altered the Air Passenger Duty (APD) taxes, which penalises planes that are half full when they fly. The APD has now been changed from a per-passenger to a per-plane levy.

With the airport expansion plans axed, the new coalition government are turning their efforts towards a new high speed rail network.