Newham Council has refused planning permission for an upgrade of London City Airport, as directed by Mayor of London Boris Johnson.

The airport was formally notified on Tuesday that the proposed expansion would not be given approval from the council’s planning committee.

Proponents said it was set to create 2,000 jobs alongside £6.8million of training and much needed improvement to local transport infrastructure.

The decision was criticised by the Mayor of Newham, Sir Robin Wales, who said: “The decision we have been directed to take will strip the UK’s economy of up to £750million and threaten upcoming international investment in London’s Royal Docks.

“This much needed investment in east London is being strangled by the Mayor of London’s decision.”