Britain’s largest airports are becoming a member of the rising non-public sector backlash in opposition to Rachel Reeves’s funds, warning {that a} £1bn enterprise charges invoice for the business will set off the cancellation of routes to and from the UK and better prices for passengers.
It describes the impression as “catastrophic”, and calls for an pressing assembly with the chancellor to debate the measures, which might have an effect on the sector from April 2026.
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“Airports are already some of the largest rates payers in the country,” it stated.
“These revaluations will increase average rates bills for airports in England by more than 450%, with some airports facing multiples of 12 times.”
The draft letter, which is addressed to Ms Reeves and meant to be copied to Sir Keir Starmer and different cupboard ministers, is known to be near being finalised.
One business supply stated it might be despatched within the coming days.
“These increases in rates, however, would destroy any chance of this and cause huge damage to the economy,” it stated.
“Investment in airport assets will decrease, routes to and from the UK will be lost (as can already be seen in Germany where taxes are rising), trade will be hurt, and British travellers will be hit with higher costs and less choice.”
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Airports UK additionally stated that the tax adjustments introduced within the Finances would jeopardise the federal government’s whole development agenda.
“Without our sector as a major partner, the government’s ambition to secure the highest growth rate in the G7 and unlock an investment-led approach to transforming the economy will be materially damaged,” it stated.
“The [Valuation Office Agency’s] revaluation [to determine future business rates liabilities] will threaten the UK’s status as a leader in aviation and a hub for global connectivity and trade.
“Airports can’t be anticipated to maintain will increase of this magnitude with out having to reduce funding or to chop routes.
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“These increases are punitive against all sizes of airports and threaten the very viability of several airports, without which critical regional connectivity would be lost.”
“This would imperil your growth mission before it even gets started, and we request an urgent meeting in December to resolve this matter.”
The letter makes airports the most recent in a string of industries to ship stark warnings to the Treasury in regards to the Finances’s probably impression.
The warning from the airports business comes amid a slew of company exercise within the sector, with The Sunday Occasions reporting final weekend that London Metropolis and Bristol airports may quickly change arms in a £10bn deal.
Heathrow’s shareholder base has additionally modified in current months, with Paris-based investor Ardian and Saudi Arabia’s sovereign wealth fund swooping for a 38% stake.
A spokesman for Airports UK declined to touch upon the letter.
The commerce affiliation is run by Karen Dee and chaired by Baroness McGregor-Smith, a outstanding businesswoman.
