UK Airport Tax Hikes Threaten Ticket prices

Air passengers should prepare for potential ticket price increases as regional airports across the UK confront “unprecedented” rises in property tax next year.

Analysis of government data reveals that regional airports are among those facing the steepest increases in business rates of any sector in the UK,stemming from an overhaul of property valuations that underpin the tax. The Guardian provides further context on UK airport expansion.

While London’s Heathrow and Gatwick airports will also experience significant increases in their business rates, the most notable impacts are expected outside of London, disproportionately affecting regional airports.

Calculations by global tax firm Ryan,based on Valuation Office Agency data,show that rateable values have more than sixfold in some instances with the latest property revaluation,leading to dramatically higher tax bills.

Even with transitional relief, which caps increases at 30% for the next year, regional airports will still experience some of the largest cash increases nationwide.

most airports anticipate their bills will more than double over the next three years.