UK Regional Airports Face Soaring Property Tax Hikes in 2026, Threatening to Drive Up Airfares and Disrupt Travel Plans Across the Country

Published on December 29, 2025

Air passengers across the UK are being warned of potential ticket price hikes as regional airports face unprecedented increases in property taxes starting in 2026. Recent analysis of official Government data has revealed that regional airports are among the hardest-hit sectors in the country following an overhaul of property valuations, which will lead to significant tax hikes for airports across the nation. This follows a comprehensive revaluation of property taxes for business rates, affecting airports with steep increases in their bills.

While Heathrow and Gatwick, the UK’s busiest airports, are also experiencing considerable tax hikes, it is the regional airports that are facing some of the most extreme increases in their business rate assessments. According to data from global tax firm Ryan, rateable values have increased more than sixfold for certain regional airports in the latest property revaluation, resulting in soaring tax bills that could strain both operators and passengers alike.

Regional Airports Set to Face Major Tax Increases

The latest property tax revaluation has sent business rates at regional airports skyrocketing. Even though there are mechanisms in place to provide some relief, such as the transitional relief limiting increases to 30% in the first year, the sharp rises are still expected to place significant pressure on airports.

For instance, Manchester Airport, one of the busiest airports outside of London, is set to see its business rates bill increase by a staggering £4.2 million, bringing its total to £18.1 million in 2026. Bristol Airport is also affected, with its rates bill jumping by £1.2 million to £5.2 million. Birmingham International Airport will face a £1.8 million increase, raising its rates bill to £7.6 million, while Newcastle International Airport will see an increase of £244,755, bringing its total to £1.1 million. These substantial hikes will undoubtedly affect the operational costs of these airports, and consequently, impact passengers.

The Impact on Airline Costs and Ticket Prices

According to Alex Probyn, the practice leader for Europe and Asia-Pacific property tax at Ryan, regional airports cannot absorb a cost shock of this magnitude. The 295% sector-wide increase in business rates will lead to a ripple effect, which will likely flow through the system. First, the cost increases will be passed on to airport charges, which will subsequently raise airline costs. As airlines face higher operating costs, passengers can expect to see ticket prices rise, making air travel more expensive across the UK.

Airport operators have warned that these unexpected tax hikes could also hold back future investments in the airport sector. For example, Manchester Airports Group has already signaled that the £2 billion investment planned for its UK airports over the next five years may need to be re-evaluated in light of the sharp increases in business rates. The tax increases are likely to have a knock-on effect on the airlines operating at these airports, especially low-cost carriers, who may find it increasingly difficult to maintain affordable ticket prices.

The Broader Economic Impact

The significant rise in property taxes at regional airports is not just a concern for travelers; it also has broader implications for the UK economy, particularly in regions that rely heavily on their airports for tourism, business connectivity, and supply chains. AirportsUK, the trade group representing UK airports, has expressed concerns that these sharp increases in business rates will negatively impact local economies, which depend on airports for job creation and economic activity.

AirportsUK has also described the government’s approach to airport business rates as “short-sighted”, warning that the higher costs may undermine the ability of regional airports to remain competitive, especially for international business and tourist traffic. Airports in cities such as Manchester, Bristol, and Birmingham support thousands of jobs and facilitate critical global trade, and the proposed tax hikes could make it harder for these airports to continue attracting both business and leisure travelers.

Furthermore, local businesses in areas surrounding airports, including those involved in tourism, retail, and logistics, could face adverse effects as the rise in airport charges and ticket prices may lead to reduced visitor numbers and higher transportation costs.

The Government’s Response and Future Outlook

In response to the widespread concerns, AirportsUK is actively engaging with the Treasury regarding the proposed business rates plan and seeking to address the potential consequences of the changes. A consultation on the issue is set to conclude in February 2026, and AirportsUK is pushing for a review of the entire system used to calculate airport business rates, emphasizing the need for a more equitable and sustainable approach.

While the proposed changes to business rates are already set to take effect, the long-term impact will depend heavily on how airports and airlines adapt to the evolving cost structures. The UK’s regional airports will need to find new ways to balance the rising tax burden with their ongoing investment in infrastructure, expansion, and services for travelers.

One of the critical components of the long-term review into how airport business rates are calculated will be ensuring that the system supports both regional growth and investment, particularly as air travel continues to recover and expand globally.

Other Affected Airports and Increased Tax Bills

Several other regional airports across the UK are facing similar increases in their business rates bills, which could further add to the financial strain on both airports and airlines. For example, Liverpool Airport will see a £233,100 rise in its rates, bringing the total to £1 million, while East Midlands International Airport will face an increase of £437,895, raising its bill to £1.9 million. Bournemouth Airport will also experience a £102,398 increase, pushing its rates bill to £443,723.

These airports, along with many others, are already struggling with the financial strain imposed by the global pandemic and are now burdened with even higher operating costs. As the aviation industry looks to recover from the effects of the pandemic, these steep tax increases could make it harder for regional airports to maintain their operations and services at a time when economic recovery is critical.

Conclusion: What This Means for the Future of Air Travel in the UK

The steep increase in business rates for UK regional airports is a significant challenge for both airport operators and passengers. While the transitional relief provides some temporary relief, the long-term impact of these tax increases is likely to result in higher ticket prices and reduced investment in airport infrastructure. Travelers can expect to see rising costs as airlines adjust to the new financial realities, and regional airports will need to carefully navigate these challenges to remain competitive and continue serving their communities.

The UK government’s review of airport business rates will play a key role in shaping the future of the aviation industry. Airports, airlines, and passengers alike will be watching closely as decisions are made that could either provide much-needed relief or create further financial pressures in the years to come.