A leading UK airport operator has launched a stinging critique of Chancellor Rachel Reeves' recent Budget, claiming the proposed business rate increases will unfairly target hard-working people and jeopardise future investment.
Budget Backlash from Aviation Giant
The Chancellor of the Exchequer has announced a significant rise in business rates, a move that will see major airports across the country facing colossal increases to their bills. Manchester Airports Group (MAG), which operates Manchester Airport, East Midlands Airport, and Stansted, is set to be charged an additional £75 million.
A spokesperson for the company told the Daily Mail that the scale of the increase forces them to re-evaluate their ambitious spending strategy. The group had planned to invest more than £2 billion in its UK airports over the next five years, but this is now under review.
Inevitable Fare Hikes and Investment Concerns
The airport group was quick to point out a perceived contradiction in the government's position. They acknowledged the government's stated support for aviation's role in driving economic growth and infrastructure investment. However, they labelled the decision to more than double airports' business rates as "inconsistent" with this growth mission.
The spokesperson stated bluntly that it is "inevitable air travel will become more expensive" as the industry is forced to absorb these new costs. This, they argued, directly impacts hard-working families throughout the nation and creates additional barriers for businesses engaged in global trade.
The problem is not isolated to MAG. According to tax advisors Ryan LLC, Heathrow Airport, already the country's highest rates-payer, will see its bill skyrocket from £117 million to £240 million within three years. This represents a staggering 353% increase in its rateable value by 2026 compared to its 2023 valuation.
Similarly, London Gatwick Airport is facing a bill that will more than double, culminating in an £80 million charge by the 2028-29 financial year.
Industry-Wide Condemnation and Passenger Impact
Karen Dee, the chief executive of Airports UK, echoed these concerns in comments to The Telegraph. She described the Budget move as "short-sighted" and warned that the consequences would be felt directly by holidaymakers.
"It's a short-sighted move that passengers will feel in their pockets with both hard-working families and business flyers experiencing price rises and more limited choices," Ms Dee said.
She highlighted the paradox of the government supporting new terminals and runways while simultaneously imposing charges that could make such infrastructure projects unviable. The expert warned that the increases could force companies to "review billions of pounds of transformational investments" and potentially put jobs at risk.
Ms Dee also pointed to a wider economic ripple effect, negatively impacting local economies that rely on airport supply chains, tourism, and global connections. She attributed the harsh rate reassessments to the travel industry's successful post-pandemic recovery, a success that now means higher costs are being passed to airlines and, ultimately, to passengers in the form of increased airfares.
