GEORGE Osborne is reportedly set to rule out a second runway at Gatwick in a bid to boost the case for expansion of Heathrow.

Mr Osborne is expected to argue it is "Heathrow or nothing" in the coming weeks.

In July, a report by Sir Howard Davies recommended a third runway be built at Heathrow, saying the investment would add £147 billion to economic growth and 70,000 jobs by 2050.

According to a national newspaper, sources close to Mr Osborne claim he had been convinced by the Davies report and is therefore ready to rule out Gatwick.

But one ally of the Chancellor told the Times: “George doesn’t have a settled view on this. He just wants to see a runway built somewhere as soon as possible once all the proper processes are concluded.”

The Sussex airport says it offers the quickest, easiest and cheapest option, and would solve the UK's air travel problem for a generation.

The plans would cost between £5 and £9 billion - a fraction of the cost of expansion at Heathrow - and would be privately financed and require a lesser public subsidy.

Meanwhile the impact on noise and air quality would be much smaller than Heathrow, directors say.

However campaigners say thousands will be affected by noise if the airport gets the all clear for a new runway.

Brendon Sewill, chairman of the Gatwick Area Conservation Campaign, previously said: “Some people may benefit from the changes but thousands are going to find themselves under a new flight path, with their peace shattered and their house devalued."

The conservation group is arguing that expanding Gatwick would be bad news for everyone within a 20-mile radius of the airport, and would affect around 18,000 homes.

A committee of ministers, of which Mr Osborne is a part, will take the decision in the next few weeks.