Air passengers across the United Kingdom are being warned to brace for higher ticket prices, as regional airports face an unprecedented surge in their property tax bills. New analysis reveals that airports outside London are confronting some of the most severe business rates increases in the country, a cost that will inevitably be passed on to travellers.
Unprecedented Tax Hikes for Aviation Hubs
According to an examination of official government data by global tax firm Ryan, the rateable values for many regional airports have skyrocketed following the latest property revaluation. In some instances, values have surged by more than six-fold. This has led to soaring tax demands, with the sector facing an average uplift of a staggering 295%.
Even with transitional relief measures that cap the initial increase to 30% next year, regional airports will still endure some of the largest cash increases nationwide. The data indicates that most airports will see their bills more than double over the next three years.
Which Airports Are Worst Affected?
The financial blow is not evenly distributed, with several key regional hubs facing monumental bill increases. Based on Ryan's analysis of Valuation Office Agency (VOA) figures:
- Manchester Airport is set for the largest cash increase, with its bill rising by £4.2 million to £18.1 million next year.
- Bristol Airport will see a £1.2 million hike, taking its total to £5.2 million.
- Birmingham International Airport faces a £1.8 million increase, resulting in a £7.6 million bill.
- Other significant rises include Newcastle International Airport (£244,755 to £1.1m), Liverpool Airport (£233,100 to £1m), East Midlands International Airport (£437,895 to £1.9m), and Bournemouth Airport (£102,398 to £443,723).
Inevitable Ripple Effect: From Tax Bills to Ticket Prices
Industry experts and airport operators are united in their warning: these costs cannot be absorbed and will filter down to consumers. Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, stated plainly: “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.”
A spokesperson for Manchester Airports Group echoed this, highlighting the broader economic impact. “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 tax shock also threatens vital investment. The same spokesperson noted that increases of more than 100% force a re-evaluation of plans to invest over £2 billion in UK airports over the next five years.
The trade body AirportsUK has labelled the government's business rates plan as “short-sighted,” warning it will “have a knock-on effect for the businesses that depend on airport connectivity in all areas of England.” The group is preparing a response to the Treasury’s consultation, which closes in February 2026, and will engage on a separate long-term review into how airport business rates are calculated.
