Birmingham Airport could see business rates double to around £12 million - curbing investment and hiking up passenger costs
Birmingham Airport could see its business rates double to around £12 million for the three years ahead from April 2026 - curbing investment and significantly hiking up costs for passengers.
The increase in rates, set by the Valuation Office Agency (VOA), has been branded “unprecedented and excessive” by bosses at the airport who have urged the Government to work with airports and their representative body to ensure the rises are reduced.
It’s a similar story for regional airports across the country, the Press Association has reported following analysis by global tax firm Ryan’s of VOA data.
According to calculations by Ryan’s regional airports face the steepest increases in business rates of any sector in the UK amid an overhaul of property valuations underpinning the tax.
Even with transitional relief, which limits increases to 30 per cent next year, regional airports are expected to endure some of the biggest increases in the country, with most airports likely to see their bills more than double over the next three years from April 2026 - resulting in ticket hikes for passengers.
Bosses at Birmingham Airport have said the citation makes “planning and investment very difficult” going forwards.
A spokesperson for the airport said: “The increase in 2026 will significantly impact airports. Birmingham Airport continues, along with other airports and Airports UK, to challenge this rise that could see its rate bill doubling to around £12m from April 2026, albeit spread over a three-year period.
“This significant increase, set by the Valuation Office Agency, is unprecedented and excessive and ultimately the cost of the increase must be recovered through higher charges to our customers, such as airlines, shops, and car parking. The increase also curbs the Airport’s investment in airport facilities.
“Our ask to Government is to work with airports, and their representative body Airports UK, to ensure that the increases are reduced and the uncertainty, which makes planning and investment very difficult, is removed.”
Trade group AirportsUK, which represents the sector, has said it is working on a response to the Treasury’s consultation on the business rates plan, which closes in February.
It has branded the plans “short-sighted”, saying they will “have a knock-on effect for the businesses that depend on airport connectivity in all areas of England”.
It said a long-term review into how airport business rates are calculated, also announced by the Government, is "so important" as it pledged to engage with Treasury to ensure the review "delivers the positive outcome airports need to drive investment and economic growth".
