Travellers across the United Kingdom are being alerted to prepare for significant increases in air fares, as regional airports confront what industry experts describe as "unprecedented" rises in their property tax bills for the coming year.
Steepest Increases Hit Regional Hubs
Fresh analysis of government data, conducted for the Press Association by global tax firm Ryan, reveals a stark picture. Regional airports are facing some of the most severe hikes in business rates of any sector nationwide. This follows a major overhaul of the property valuations that form the basis of the tax.
While major London hubs like Heathrow and Gatwick are also seeing substantial increases, the figures indicate the most extreme cases are concentrated outside the capital. Ryan's calculations, based on Valuation Office Agency data, show rateable values have jumped more than six-fold in some instances during the latest property revaluation.
Even with transitional relief measures in place—which cap increases to 30% for the next financial year—regional airports will still endure some of the largest cash increases in the country. For most, their total bills are projected to more than double over the next three years.
Which Airports Are Worst Affected?
The financial impact varies by airport, but several key regional hubs are facing multi-million-pound increases:
- Manchester Airport is set for one of the largest rises, with its business rates bill expected to increase by £4.2 million to a total of £18.1 million next year.
- Bristol Airport will see a £1.2 million increase, taking its bill to £5.2 million.
- Birmingham International Airport faces a £1.8 million rise to £7.6 million.
- Newcastle International Airport is in line for a £244,755 increase to £1.1 million.
Other airports heading for substantial bill increases include Liverpool John Lennon Airport (£233,100 rise to £1 million), East Midlands International Airport (£437,895 increase to £1.9 million), and Bournemouth Airport (£102,398 increase to £443,723).
Inevitable Pass-On to Passengers and Investment Fears
Industry leaders warn that absorbing such a dramatic cost shock is impossible. Alex Probyn, Practice Leader for Europe and Asia-Pacific Property Tax at Ryan, stated: "With an unprecedented 295% sector-wide uplift, regional airports simply cannot absorb a cost shock of this magnitude." He outlined the inevitable chain reaction: "These increases will inevitably flow through the system: first into airport charges, then into airline costs, and ultimately into ticket prices."
Airport operators have expressed grave concern that the tax blow could also stifle vital investment. A spokesperson for Manchester Airports Group (MAG), which owns Manchester, London Stansted, and East Midlands airports, 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 £2bn in our airports across the UK over the next five years."
The spokesperson emphasised the broader economic consequence, noting 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."
The trade body AirportsUK has labelled the government's plans as "shortsighted," warning they will "have a knock-on effect for the businesses that depend on airport connectivity in all areas of England." The group argues this risks "negatively impacting local economies that depend on the supply chains, tourists and connections their airports provide." AirportsUK is currently formulating a response to the Treasury's consultation on the business rates plan, which closes in February.
