Chancellor George Osborne on The Andrew Marr Show. Picture: Jeff Overs/BBC/PA Wire

Chancellor George Osborne has said “all options” for increasing airport capacity should be considered, not ruling out a third runway at Heathrow.

Mr Osborne was speaking on The Andrew Marr Show this morning, just days after Downing Street said it would not reverse the policy that Heathrow should not get another runway.

Transport Secretary Justine Greening is about to launch a consultation on future airport provision.

Speaking this morning on the BBC show Mr Osborne emphasised his support for businesses who have been pressing for more capacity in the south east of England.

He said: “I am firmly in the camp of we need more airport capacity in the south east of England, we need more runway capacity in the south east of England. Then there is a question of where it should go - Heathrow, a new estuary airport, Stansted, Gatwick. People have lots of different options.

“What I would say is let’s examine all the options. Let’s do it now. Let’s make sure we can try and create a political consensus.

“We do need to deal with the fact that there is opposition across communities to particular airport developments.”

Mr Osborne also said that the success of the London Olympics showed that the country was capable of taking on major projects.

“We can deliver, when we have the energy and the effort, big infrastructure of the kind you think these days only the Chinese can deliver,” he said.

“I think we have demonstrated this summer that we are a competent and a strong nation.”