Travellers flying from regional airports across Britain should prepare for higher ticket prices as the sector confronts what industry experts are calling an “unprecedented” surge in property tax obligations.
airports outside London face some of the most dramatic business rates increases of any industry in the country, following a comprehensive reassessment of property valuations, according to new figures.
Global tax firm Ryan’s calculation of Valuation Office Agency (VOA) data found that the rateable values have jumped more than six-fold in some cases in the latest property revaluation, sending tax bills soaring higher.
Despite transitional relief measures capping rises at 30 per cent for the coming year, regional airports remain among the hardest hit, with the majority expected to see their bills more than double within three years.
Manchester Airport stands among the worst affected, facing a £4.2million jump in its business rates bill to reach £18.1million in the coming year, according to Ryan’s calculations.
Birmingham International Airport expects its liability to climb by £1.8million to £7.6million, whilst Bristol Airport will see an additional £1.2million added to its bill, bringing the total to £5.2million.
Further north, Newcastle International Airport is set for a £244,755 increase, pushing its annual payment to £1.1million.
Liverpool Airport faces a £233,100 rise to £1million, and East Midlands International Airport will see its bill grow by £437,895 to £1.9million.
Even smaller facilities are not spared, with Bournemouth Airport confronting a £102,398 increase to £443,723.
Airport operators have cautioned that the tax burden could also constrain future development across the sector
|
PA
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan said: “With an unprecedented 295 per cent sector-wide uplift, regional airports simply cannot absorb a cost shock of this magnitude.”
He warned: “These increases will inevitably flow through the system: first into airport charges, then into airline costs, and ultimately into ticket prices.”
Airport operators have cautioned that the tax burden could also constrain future development across the sector.
A Manchester Airports Group spokesperson said: “Airports were already some of the highest rates-payers in the country and were prepared to pay significantly more.”
These increases will inevitably flow into ticket prices
|
GETTYThe group added: “But increases of more than 100 per cent mean we have to look again at our plans to invest more than £2billion in our airports across the UK over the next five years.”
The Manchester Airports Group spokesperson stated: “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.”
AirportsUK, the trade body representing the sector, has described the government’s plans as “short-sighted” and warned they will “have a knock-on effect for the businesses that depend on airport connectivity in all areas of England”.
AirportsUK is pledging to engage with the Treasury to secure outcomes that support investment and economic growth
|
PAThe organisation cautioned this risks “negatively impacting local economies that depend on the supply chains, tourists and connections their airports provide”.
The industry group is preparing its response to the Treasury’s consultation on business rates, which closes in February.
AirportsUK emphasised the importance of a long-term review into how airport business rates are calculated, pledging to engage with Treasury to secure outcomes that support investment and economic growth.
