UK airports warn of higher air fares and fewer routes if business rates soar

Highly rated: London Heathrow Terminal 5 - (Simon Calder)

Air fares will rise and some routes will be cancelled if Britain’s airports are hit with a £1bn increase in business rates, the chancellor is to be warned.

Sky News has seen a draft letter from the trade association AirportsUK to Rachel Reeves which warns of a “catastrophic” impact from April 2026 if the rise in the property tax goes ahead.