Neil666 is wholly correct. Not only is this crass decision a disaster for the business and GA users at the airfield, it is also a disaster for the local community as a whole.
I have lived in this area for over 40years. During that time I have seen how the Navy and business have withdrawn leaving brownfield sites for developers to make money building more houses. The Gosport peninsula now has the cheapest housing in the south due to the oversupply of houses, gridlocked roads, and some of the highest unemployment. It also has one of the highest "out commutes" of any town in the country.
When SEEDA said they would develop the airfield site with a particular emphasis on marine and aviation, the local community at last felt that some attention was to be paid to providing an asset that we could be proud of. Of course it would take time to build up, but with public help from SEEDA this could have been achieved.
Instead the so called "economic development agency" has done nothing but put obstacles in the way of those wanting to develop the airfield for aviation business. Other posters are right that the Health and Safety issue is just a smoke screen. Go to the EGHF website and read the report SEEDA commissioned. You will see it was written by the management of Shoreham Airport! Yes that’s right - that lot who were investigated for fraud last year and would stand to benefit as one of the nearest competitors with a hard runway suitable for GA!
This is not just an issue for those in aviation. This is an issue which will affect the whole of the area. SEEDA should be thoroughly ashamed that they have stood by and watched this happen.