Full Breakdown
Regional Airports Face Significant Tax Hikes, Impacting Airfare
12/29/2025, 8:10:11 PM
Overview of the Tax Increases
Air travelers in the UK are likely to experience higher ticket prices as regional airports prepare for unprecedented increases in property taxes starting in 2026. An analysis by global tax firm Ryan, based on data from the Valuation Office Agency (VOA), reveals that regional airports are among the sectors facing the steepest hikes in business rates due to a comprehensive revaluation of property taxes. While major airports like London Heathrow and Gatwick will also see substantial increases, the most severe impacts are expected to be felt outside the capital.
Financial Implications for Regional Airports
The analysis indicates that rateable values for some regional airports have surged by more than six-fold, leading to significant tax demands. For instance, Manchester Airport's business rates bill is projected to rise by £4.2 million to £18.1 million next year. Other notable increases include Bristol Airport, which will see a £1.2 million hike to £5.2 million, and Birmingham International Airport, expected to rise by £1.8 million to £7.6 million. Newcastle International Airport is set for a £244,755 increase to £1.1 million.
Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, stated, “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.”
Criticism from Airport Operators
Airport operators have expressed concerns that these tax increases may hinder investment in the sector. A spokesperson for Manchester Airports Group noted that airports were already among the highest rate-payers in the country and were prepared to pay more. However, they emphasized that increases exceeding 100% necessitate a reevaluation of their plans to invest over £2 billion in UK airports over the next five years.
AirportsUK, the trade group representing the sector, criticized the government's plans as "short-sighted," warning that they could negatively impact local economies reliant on airport connectivity. The group is preparing a response to the Treasury's consultation on the business rates plan, which is set to close in February.
Broader Economic Impact
The anticipated rise in airfares due to these tax hikes is expected to affect not only travelers but also businesses that depend on air travel for global trade. The increased costs could make air travel less accessible for hard-working individuals and complicate logistics for businesses relying on efficient transport networks.
Verbatim Quotes
- “Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, told PA: “With an unprecedented 295% sector-wide uplift, regional airports simply cannot absorb a cost shock of this magnitude.” — Alex Probyn, Practice Leader, Ryan
- “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.” — Manchester Airports Group Spokesperson
As regional airports brace for these significant tax increases, the implications for air travel affordability and economic connectivity remain a pressing concern for stakeholders across the UK.
