‘Catastrophic’: Airports demand meeting with Rachel Reeves over business rates
British airports have joined the chorus of industries slamming Chancellor Rachel Reeves’ Autumn Budget, demanding an urgent meeting with Chancellor Rachel Reeves to discuss the “catastrophic” impact of a new £1bn business rates bill for the industry.
A draft letter from Airports UK, which represents over 50 airports in the UK, claims the industry will be forced to pay out more than £1bn due to business rates re-evaluations, a fivefold increase on current levels.
The letter, reported by Sky News’ Mark Kleinman, describes the impact as “catastrophic” and requests a meeting with the chancellor before the measures come into place, from April 2026.
“Airports are already some of the largest rates payers in the country,” it said.
“These revaluations will increase average rates bills for airports in England by more than 450 per cent, with some airports facing multiples of 12 times.”
It marks the latest rallying cry from UK business against Labour’s tax heavy Budget, with retailers, hospitality chiefs and other key sectors all warning of job losses, price hikes and business closures.
Sky News reported the letter is close to being finalised, with one source suggesting it could be sent in the coming days.
According to the outlet, Airports UK describes the soaring bill as “equivalent to doubling the corporation tax levied on the sector, at a time when the government has committed to stable tax and policy regimes to drive business confidence and stimulate private sector investment”.
“These increases in rates, however, would destroy any chance of this and cause huge damage to the economy,” it said.
“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.”
The letter also argued that wider tax changes introduced by the budget would put threaten the government’s entire growth 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.”
In a statement, Airports UK said it was “disappointing that this private letter has been made public.
“We work closely with government on a range of issues of importance to airports and the wider aviation industry to provide a stable, sustainable and affordable operating environment.
The group added: “Airports play a crucial role in the economy, enabling trade and tourism, bringing foreign investment and creating jobs. All together the sector contributes over £1bn per week to the UK’s gross value added (GVA), while almost £100bn in UK export GVA is facilitated by aviation.
“It is therefore right that we bring issues to the attention of government that might positively or negatively affect these benefits, especially at a time when government wants the UK to have the fastest growing economy in the G7.”
The Treasury has been approached for comment.