Will UK Flight Prices Soar? Regional Airports Hit by 'Unprecedented' Tax Hike.

December 29, 2025 at 04:06 PM•3 min read

UK regional airports face unprecedented property tax hikes, with Manchester Airport's bill surging by £4.2M, leading to warnings of inevitable flight price increases for passengers.

Key Points

1Manchester Airport's business rates bill is set to surge by £4.2 million to £18.1 million following a property revaluation.
2The UK airport sector faces an 'unprecedented' 295% uplift in business rates, with most bills expected to more than double over three years.
3Industry leaders warn the cost shock will be passed to consumers, leading to inevitable flight price increases and forcing a review of over £2 billion in planned airport investment.
4AirportsUK is engaging with the Treasury to secure a long-term review of business rates calculation before the consultation closes in February.

Air passengers across the UK are warned of higher flight price increases starting next year. This follows an overhaul of property valuations for business rates. Regional airports face some of the steepest tax hikes in the country. This massive cost shock is expected to be passed to consumers.

The Business Rates Revaluation

The UK government's property revaluation is driving the sharp increase in tax bills. Global tax firm Ryan analyzed Valuation Office Agency (VOA) data. Their analysis found that rateable values have jumped more than six-fold in some cases. The entire sector faces an "unprecedented" 295% uplift in business rates. Even with transitional relief, which caps initial increases, the financial burden remains significant. Most airports anticipate their bills will more than double over the next three years. This affects the entire UK aviation sector investment landscape.

Major Regional Airport Tax Hikes

Regional airport tax hikes are most extreme outside London's major hubs. Manchester Airport is one of the worst affected facilities. Its Manchester Airport business rates bill is set to surge by £4.2 million. The total bill will reach £18.1 million next year.

Other key regional airports face similar multi-million-pound increases:

Bristol Airport: A £1.2 million increase, raising the bill to £5.2 million.
Birmingham International Airport: A £1.8 million hike, raising the bill to £7.6 million.
Newcastle International Airport: A £244,755 increase, raising the total to £1.1 million.

Smaller regional facilities are also impacted by the new property tax revaluation. Liverpool Airport faces a £233,100 rise to £1 million. East Midlands International Airport will see a £437,895 increase to £1.9 million.

Impact on Airlines and Passengers

Industry experts confirm that airports cannot absorb a cost shock of this magnitude. The increases will follow a clear path through the industry. Costs will first raise airport charges, then increase airline operating costs. This will ultimately result in higher ticket prices for passengers.

Manchester Airports Group (MAG) warned that air travel will inevitably become more expensive. MAG is now reviewing its plans to invest more than £2 billion in its UK airports. This signals a risk to future infrastructure and service improvements.

Industry Response and Future Outlook

AirportsUK, the sector's trade group, called the plans "short-sighted". They warned the higher costs will negatively impact local economies. These economies depend on airport connectivity, supply chains, and tourism. The group is currently preparing a response to the Treasury's consultation. This AirportsUK consultation response is due to close in February. They are pushing for a long-term review of how UK airport business rates are calculated. This aims to secure a more sustainable approach for the UK aviation sector. For more commercial aviation news, visit flying.flights. The outcome of the consultation is critical for future investment and economic growth.