Airports condemn Budget doubling of business rates

The UK’s largest regional airports operator has warned that a doubling of business rates for the sector will mean higher travel costs and a rethink in investment.

Manchester Airports Group (MAG) condemned the increases in airports’ businesses rates announced in yesterday’s Budget. 

MAG, which owns Manchester, Stansted and East Midlands airports, complained that increases were counter to the government’s backing for airport expansion. 

A spokesperson said: “This government has rightly recognised aviation’s role in delivering its growth mission. Its policy support for major infrastructure investment that creates jobs, powers regions and unlocks global trade has been welcome.

“That position is inconsistent with the decision to more than double airports’ business rates bills.

"Airports were already some of the highest rates-payers in the country and were prepared to pay significantly more. 

"But increases of more than 100% mean we have to look again at our plans to invest more than £2 billion in our airports across the UK over the next five years.”

They warned: "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.

"Unless a realistic long-term settlement is agreed in the upcoming review, the growth of our sector - and the economy - will be held back.”

Trade body Airports UK also criticised the doubling of business rates as a “short-sighted move that passengers will feel in their pockets with both hard-working families and business flyers experiencing price rises and more limited choices”. 

Heathrow made a pre-budget plea for the Treasury to address the Valuation Office Agency’s “punitive” revaluation in business rates for airports. 

The London hub warned that it faces an “eye-watering multiple-fold” increase. 

Heathrow added: “Left unchecked, these would drive unacceptable costs for airlines and could deter private investors who are ready to help UK aviation to grow and improve services, with billions in UK supply chain spend at stake.”