Oral Answers to Questions

Gareth Bacon Excerpts

Thursday 13th February 2025 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[Gareth Bacon (Orpington) (Con)]

Heathrow airport is already the largest single-site payer of business rates in the country, paying approximately £124 million annually. To fund the Chancellor’s next spending spree, the Valuation Office Agency is currently revaluating airports in England and Wales, and any significant increase could impact Heathrow’s ability to fund airport expansion and a third runway. Is the Secretary of State aware of the latest estimate of how much Heathrow’s business rates will increase by?

[The Parliamentary Under-Secretary of State for Transport (Mike Kane)]

This was a policy cooked up by the Valuation Office Agency under His Majesty’s Revenue and Customs by the last Government. We have engaged with airports on this matter and asked them to continue to engage with the Valuation Office Agency.

[Gareth Bacon]

I notice that the Minister did not answer my question, so I will assist him. The estimate is that Heathrow’s rates bill will increase fivefold to £600 million annually, putting substantial additional pressure on Heathrow’s finances. In the light of that, will the Minister confirm the long-standing policy that the full cost of a third runway, including related works such as relocating, tunnelling or bridging over the M25, will be fully funded by the private sector and not by the taxpayer?

[Mike Kane]

The airports national policy statement from 2018, which was two Governments ago, made it clear that any proposal—we have not had a proposal come forward—should treat surface access appropriately, and that should be funded by the private sector where possible.