UK budget travel blues for 2026, airfares to rise to destinations like Mallorca due to business tax

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.

Analysis of official Government data for the Press Association has revealed regional airports are among those facing the steepest increases in business rates of any sector in the UK amid an overhaul of property valuations underpinning the tax. Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, told PA: “With an unprecedented 295 per cent sector-wide uplift, regional airports simply cannot absorb a cost shock of this magnitude.

“These increases will inevitably flow through the system: first into airport charges, then into airline costs, and ultimately into ticket prices.” Airport operators have warned the tax blow may also hold back investment in the sector.