Ministers have granted permission for London City Airport to undertake a £344m expansion, including an extended terminal, more space for planes to taxi to and from the runway, and new aircraft stands to allow bigger and more modern airplanes to use the airport.

The airport currently serves around 4 million passengers a year, but it is aimed that this will increase to 6 million a year by 2023, increasing the number of flights in and out of the airport from 70,000 a year to 111,000.

Caroline Russel, a Green Party London assembly member, has dubbed the “terrible” decision “reckless”, but Chancellor Philip Hammond said the investment was a “vote of confidence in the resilience of our economy.”

The scheme is estimated to create 1,600 jobs for airport staff, as well as another 500 construction jobs.

Mr Hammond said: “London City Airport’s ambitious growth plans will boost international connections, strengthening the City of London’s links to destinations across the world, and send a clear signal that Britain is open for business.”

Former Mayor Boris Johnson blocked the proposals, but Sadiq Khan quickly lifted his predecessor’s objections once he was elected, paving the way for the decision, which was formally approved by Mr Hammond, along with Transport Secretary Chris Grayling and Communities and Local Government Secretary Sajid Javid.

Ms Russell claims that the decision goes against Mr Khan’s pledge to be London’s greenest mayor ever. “From not being able to sleep with the windows open due to aircraft noise at night, to higher levels of asthma in children who live in the area – people in east London are really going to suffer because of this reckless decision,” she said.

However, the government has said that there will be a “generous” compensation package for the local residents.