A major UK airport operator has hit out at Rachel Reeves‘ Budget and claims it is ‘impacting hard-working people’.
The Chancellor of the Exchequer has announced a business rate increase in her recent Budget.
It will see major airports across the country hit with huge increases in their rate bills.
Manchester Airports Group, which operates Manchester Airport, East Midlands Airport and Stansted, will be charged £75million.
A spokesperson for the company told the Daily Mail it would have to ‘look again’ at its future investment plans due to the budget.
They 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.
Manchester Airports Group, which operates Manchester Airport, East Midlands Airport (pictured) and Stansted, will be charged £75million
What’s more, as a result of the higher rates, Manchester Airports Group claimed it is ‘inevitable air travel will become more expensive’ because of the costs.
The spokesperson added: ‘But increases of more than 100% mean we have to look again at our plans to invest more than £2bn in our airports across the UK over the next five years.
‘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.’
Heathrow, which already pays the highest rate in the country, is set to see its rate bill go from £117 million to £240million in three years, according to tax advisor company Ryan LLC.
The UK’s biggest hub will see a 353 per cent increase in its rateable value in 2026, in comparison to its valuation in 2023.
London Gatwick Airport will also see its rate bill more than double, and will be hit with an £80million charge by 2028-29.
A spokesperson for the company told the Daily Mail it would have to ‘look again’ at its future investment plans due to the budget
The chief executive of AirportsUK, Karen Dee, told The Telegraph how holidaymakers will be impacted by the bill increases.
She said: ‘It’s 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.’
The expert hit out at Labour supporting new terminals and runways whilst also ramping up charges that might make such plans difficult for hubs.
She explained how the increase could make some companies ‘review billions of pounds of transformational investments’ as well as put jobs at risk.
‘This will obviously have a knock-on effect for the businesses that depend on airport connectivity in all areas of England, negatively impacting local economies that depend on the supply chains, tourists and connections their airports provide,’ Karen added.
She blames the increases on how successful the travel industry has managed to bounce back from the pandemic.
This, Karen says, has led to the cost being passed to airlines and therefore an increase in fares for passengers.
