Air travellers across the UK could face higher ticket prices as regional airports brace for "unprecedented" increases in property tax next year. This comes as an analysis of official government data reveals that regional airports are among the sectors facing the most significant hikes in business rates.
While major hubs like London Heathrow and Gatwick are also set to incur substantial rises in their business rates bills, the data indicates that the most extreme cases are concentrated outside the capital, disproportionately affecting regional facilities.
Calculations by global tax firm Ryan, based on Valuation Office Agency (VOA) figures, show that rateable values have surged by more than six-fold in some instances following the latest property revaluation, leading to soaring tax demands.
Even with so-called transitional relief, which limits increases to 30% next year, regional airports will still endure some of the largest cash increases in the country.
And most airports will see their bills more than double over the next three years.
Manchester Airport is among the worst affected, with its business rates bill set to surge by £4.2 million to £18.1 million next year, according to Ryan’s data.
Bristol Airport will see a £1.2 million increase to £5.2 million, while Birmingham International Airport is expected to see a £1.8 million hike to £7.6 million.
Newcastle International Airport is in line for a £244,755 hike to £1.1 million.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, told PA: “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 warned the tax blow may also hold back investment in the sector.
A Manchester Airports Group spokesperson 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 working on a response to the Treasury’s consultation on the business rates plan, which closes in February.
It said the plans are “short-sighted” and will “have a knock-on effect for the businesses that depend on airport connectivity in all areas of England”.
This risks “negatively impacting local economies that depend on the supply chains, tourists and connections their airports provide”, according to the group.
“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.”
Other regional airports heading for mammoth bill increases include Liverpool Airport with a £233,100 rise to £1 million, East Midlands International Airport with a £437,895 increase to £1.9 million and Bournemouth Airport with a £102,398 increase to £443,723.
Your miracles of travel in 2025
Six US airports that are so good they might make you wish your flight was delayed
Warning as EU entry-exit system causing ‘three-hour waits’ at airports
UK airports expecting busiest Christmas on record
Some train passengers face soaring fares with new contactless payment rules
End of an era as New York subway finally switches payment system
