Passengers flying from regional UK airports have been warned to expect higher ticket prices after a government property revaluation will cause business rates bills to soar. Analysis by global tax firm Ryan, using Valuation Office Agency data, shows that rateable values have jumped more than sixfold in some cases, with regional airports among the worst affected.
Manchester Airport is facing the largest cash increase, with its business rates bill rising by £4.2 million to £18.1 million next year, even with transitional relief limiting the rise to 30%. Bristol Airport will see a £1.2 million increase to £5.2 million, Birmingham International Airport a £1.8 million rise to £7.6 million, and Newcastle International Airport a £244,755 increase to £1.1 million.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, described the situation as 'unprecedented', with a sector-wide uplift of 295%. He said airports could not absorb such costs, and the increases would flow through to airport charges, airline costs, and ultimately ticket prices.
A spokesperson for Manchester Airports Group said the rises of more than 100% meant it had to reconsider its plans to invest over £2 billion in UK airports over the next five years. They added that air travel would inevitably become more expensive, impacting hard-working people and making global trade harder for businesses.
Trade body AirportsUK, which is responding to a Treasury consultation on business rates, called the plans 'shortsighted'. It warned of knock-on effects for businesses that depend on airport connectivity and local economies reliant on supply chains, tourists, and connections. The group said a long-term review into how airport business rates are calculated was crucial to drive investment and economic growth.
