The Airports Commission has backed a new runway at Heathrow Airport in a potential economic blow to Croydon.

A report by Sir Howard Davies said the west London airport presented the "strongest case" for expansion of UK aviation capacity.

Croydon businesses and politicians had championed a second runway at Gatwick Airport, which would bring thousands of jobs to south London and millions of pounds in investment in housing and transport.

After nearly three years of deliberation the commission "unanimously concluded" a third Heathrow runway offered the greatest benefits to the UK, including £147bn in economic growth and 70,000 new jobs by 2050.

But it left the door open to Gatwick expansion, which the report said was "feasible" and would be less detrimental in terms of noise and air quality.

NOVEMBER 2014: Croydon Council backing second Gatwick runway to boost borough's businesses

The final decision on any new runway will be made by the Government.

Councillor Tony Newman, Croydon Council leader, said: "We continue to pledge our support to Gatwick’s campaign for a second runway and I call on all politicians in Croydon to back my call for the Prime Minister to do the right thing and support the expansion of Gatwick.

"We believe Gatwick offers the best deal for Croydon, London and the UK as a whole.

"Croydon is on the brink of Olympic-scale transformation, and just 15 minutes away by train, Gatwick can make a really important contribution to the regeneration and investment already underway in our borough."

Last year the council agreed to campaign for the expansion of Gatwick in return for guarantees of investment if the airport built a second runway.

As part of the deal, Gatwick pledged to help Croydon students access jobs at the airport, invest £46.5m in housing and push for improved transport links from Brighton to London.

It predicted a new runway would bring 14,000 jobs to south London, centred on Croydon, as well as 22,000 airport-related roles. 

The Davies Commission predicted the rate of job creation would be slower than that of Heathrow, with only 4,000 to 7,000 new positions by 2030.

But it said Gatwick expansion would bring "valuable economic and employment benefits" and better transport links to Croydon "with greater international connectivity helping local businesses reach growth markets more quickly and more affordably".

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Gatwick's proposed expansion plans

Croydon's Great London Assembly member, Steve O'Connell, who once called for Gatwick to be renamed Croydon International Airport, said the commission had "ended up picking the wrong airport".

He added: "Expanding Gatwick was the right decision for London. It provides south London with an easy link to destinations around the world. This link brings business and local jobs to the area. 

"When Gatwick expands so does the local economy. The Government now has no choice but to go back to the drawing board."

Stewart Wingate, Gatwick chief executive, said the airport was "still very much in the race".

He added: "We are confident that when the Government makes that decision they will choose Gatwick as the only deliverable option. For instance, this report highlights the very significant environmental challenges at Heathrow such as air quality and noise impact."

Mayor of London Boris Johnson said a third Heathrow runway would be "catastrophic" and "will never be built".

A new runway at either airport would be strongly opposed by environmental campaigners, who say air pollution, noise levels and congestion would damage quality of life for thousands of people.

Click here to read the Airports Commission's report.