Travellers across the United Kingdom are being told to prepare for significant increases in air ticket prices. This follows the revelation that regional airports are confronting what industry experts label "unprecedented" surges in their property tax bills.
Steepest Increases in the Country
An analysis of official government data, prepared for the Press Association by global tax firm Ryan, shows that regional airports are facing some of the most extreme business rates rises of any UK sector. This is due to a major overhaul of the property valuations that form the basis of the tax.
The sector-wide uplift is a staggering 295%, according to the calculations based on Valuation Office Agency (VOA) figures. In some cases, rateable values have jumped more than six-fold. While London hubs Heathrow and Gatwick also face sharp increases, the most severe impacts are concentrated outside the capital.
Cash Impact on Major Hubs
Even with transitional relief capping next year's increase at 30%, regional airports will endure some of the largest cash hikes nationwide. Most will see their total bills more than double over the coming three years.
Manchester Airport is among the worst affected, with its business rates bill expected to surge by £4.2 million to £18.1 million next year. Bristol Airport faces a £1.2 million increase to £5.2 million, while Birmingham International Airport is set for a £1.8 million hike to £7.6 million. Newcastle International Airport will see a rise of £244,755 to £1.1 million.
Other airports facing mammoth increases include Liverpool (£233,100 rise to £1 million), East Midlands International (£437,895 increase to £1.9 million), and Bournemouth (£102,398 increase to £443,723).
Inevitable Pass-On to Passengers
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, stated the scale of the cost shock is unabsorbable for airports. "These increases will inevitably flow through the system: first into airport charges, then into airline costs, and ultimately into ticket prices," he told PA.
Airport operators have issued stark warnings that the tax blow could also stifle vital investment. A spokesperson for Manchester Airports Group said increases of over 100% force a re-evaluation of plans to invest more than £2 billion in its UK airports over the next five years.
"It is inevitable air travel will become more expensive as the industry absorbs these costs," the spokesperson added, highlighting the impact on both holidaymakers and businesses reliant on global connections.
Sector Warns of Wider Economic Damage
Industry trade body AirportsUK is preparing a response to the Treasury's consultation on the business rates plan, which closes in February. It has criticised the plans as "short-sighted," warning they will have a damaging knock-on effect for businesses nationwide that depend on airport connectivity.
The group argues this risks harming local economies that thrive on the supply chains, tourists, and global links their airports provide. It has emphasised the importance of a concurrent government review into how airport business rates are calculated, pledging to engage with the Treasury to seek a outcome that supports investment and economic growth.
