Airports uk warns of business rates catastrophe amid budget backlash
- Airports UK plans to send a letter to Rachel Reeves regarding proposed business rates increases.
- The proposed rates increase could lead to a £1 billion business rates bill, with some airports facing up to 12 times their current rates.
- The aviation sector warns that these changes could result in route cancellations and increased costs for passengers.
In the United Kingdom, major airports are expressing significant concerns over proposed business rates increases outlined in Rachel Reeves's recent budget. The industry trade body, Airports UK, which represents over 50 airports, has indicated that the new business rates will lead to a fivefold increase in rates bills, surpassing £1 billion. This steep rise, expected to take effect from April 2026, is projected to have a devastating impact on the aviation sector, including the cancellation of routes and increased costs for travelers. The draft letter obtained by Sky News calls for an urgent meeting with the chancellor to discuss these changes and their implications. Airports emphasize that, currently, they are among the largest rate payers in the country and that these enhancements will lead to average bills rising by over 450%, with some airports facing increases as high as twelve times their current rates. The letter also warns that such drastic measures would compromise the government’s growth agenda and negatively affect investment in airport infrastructure, regional connectivity, and overall economic stability. The trepidation voiced by airports parallels similar warnings from other sectors, such as hospitality and retail, which have raised concerns about impending job losses and closures due to increased national insurance contributions scheduled for the following April. Without addressing the situation effectively, stakeholders believe that not only will British travelers be adversely impacted, but the UK’s standing as a global aviation leader could also be jeopardized.