Airports outside London are set to be ‘most extreme’ as they face ‘unprecedented’ rises
Air travellers are being urged to prepare for soaring ticket prices as regional airports throughout the UK brace for “unprecedented” property tax increases next year. An examination of official Government figures for the Press Association has shown that regional airports are among those confronting the sharpest business rates rises of any industry in the UK during a comprehensive overhaul of property assessments that determine the levy.
While London’s Heathrow and Gatwick are also being hammered with staggering business rates increases, the data reveals that the most severe cases are concentrated beyond London, with regional airports poised to bear the brunt. Global tax consultancy Ryan’s analysis of Valuation Office Agency (VOA) figures discovered that rateable values have rocketed more than six times over in certain instances during the latest property reassessment, causing tax demands to skyrocket.
Despite so-called transitional relief, which caps rises at 30% next year, regional airports will still face some of the most substantial cash hikes nationwide. The majority of airports will witness their bills more than treble over the coming three years.
Manchester Airport stands among the hardest hit, with its business rates demand poised to leap by £4.2 million to £18.1 million next year, Ryan’s figures show. Bristol Airport will experience a £1.2 million jump to £5.2 million, whilst Birmingham International Airport anticipates a £1.8 million surge to £7.6 million.
Newcastle International Airport faces a £244,755 rise to £1.1 million. Alex Probyn, who leads property tax practice for Europe and Asia-Pacific at Ryan, said: “With an unprecedented 295% sector-wide uplift, regional airports simply cannot absorb a cost shock of this magnitude. These increases will inevitably flow through the system: first into airport charges, then into airline costs, and ultimately into ticket prices.”
Airport operators have raised concerns that this tax hike could stifle investment in the sector.
A spokesperson from Manchester Airports Group said: “Airports were already some of the highest rates-payers in the country and were prepared to pay significantly more. But increases of more than 100% mean we have to look again at our plans to invest more than £2 billion in our airports across the UK over the next five years.
“It is inevitable air travel will become more expensive as the industry absorbs these costs. That impacts hard-working people throughout the country and makes global trade harder for businesses.”
AirportsUK, the trade group representing the sector, is formulating a response to the Treasury’s consultation on the business rates plan, which concludes in February. It criticised the plans as “short-sighted” and warned they will “have a knock-on effect for the businesses that depend on airport connectivity in all areas of England”. This threatens to “negatively impacting local economies that depend on the supply chains, tourists and connections their airports provide”, the organisation warned.
The group emphasised the significance of government intervention: “That is why the long-term review into how airport business rates are calculated, also announced by Government, is so important and we will engage with Treasury to ensure this delivers the positive outcome airports need to drive investment and economic growth.”
Additional regional airports bracing for colossal rate hikes include Liverpool Airport facing a £233,100 surge to £1 million, East Midlands International Airport confronting a £437,895 leap to £1.9 million and Bournemouth Airport dealing with a £102,398 jump to £443,723.