Gatwick warns business rates hike could hit development plans
Written by admin on August 15, 2025
Gatwick Airport’s expansion plans could be hit by the impact of forthcoming changes to business rates, its chief executive has said.
Stewart Wingate warned in the West Sussex airport’s financial results on Thursday (15 August) that the outcome of an ongoing review of the tax could hit investments.
The business rate revaluation is set to come into force next year, reflecting April 2024 market values. The specific rates taking effect are due to be announced at this year’s Autumn Budget, with initial consultations having been held on the topic since last year.
“Together with other UK airports we face a potential unprecedented rise in business rates because of a government review,” he said.
“London Gatwick is already one of the largest rate payers in the country and this change could see us paying many times our current rate.
“This could significantly impact our business model and ability to invest in growth and development initiatives.”
Wingate added that airport-sector representatives were attempting to “find a workable solution” with the Treasury.
Gatwick’s main future investment is due to be a £2.2bn expansion that would move what is currently its standby northern runway 12 metres and bring it into regular operational use.
After the move, which has yet to be greenlit, it aims to grow to serve 75 million passengers a year by 2038, compared with 43.2 million in 2024.
Transport secretary Heidi Alexander announced in February that the government was “minded to approve” the project.
A final decision is due in October. Since Alexander’s statement, the airport has been required to submit information on issues including noise mitigation and passengers’ travel to the facility by public transport.
Wingate said he was confident that the plan – which would create an estimated 14,000 jobs and inject a forecast £1bn into the region’s economy annually – would be approved.
He said on an investors’ call on Thursday morning: “We’re optimistic we’ll get a positive decision from government.
“We’ve made very clear to the government that what we need is a positive decision with planning conditions that enable us to move ahead with the investment.”
According to the Times, the airport has asked the Department for Transport to help make rail fares more affordable and improve timetables to boost the number of travellers taking that option.
If approved, construction on the northern runway project will be funded by the airport and is expected to take around five years.
The Vinci-majority-owned facility reported a £166.2m pre-tax profit on £491.4m of revenue in the six months to 30 June 2025. This was up from a £136.3m pre-tax profit on a £487.9m turnover in the same period in 2024.
