Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant of the Answer of 20 December 2024 to Question 19700 on Airports: Business Rates, if she will make an assessment of the potential impact of (a) the rates revaluation in April 2026 and (b) the surcharge for hereditaments above £500,000 Rateable Value from April 2026 on (i) economic growth, (ii) international competitiveness and (iii) airfares.

The Government recognises that in the post-COVID world, expected valuations for airports at the 2026 revaluation amount to significant increases. The aviation sector is in conversation with the Valuation Office Agency (VOA) about their 2026 draft rateable values.

The Government is legally required to introduce transitional relief for ratepayers to support those seeing the biggest increases at revaluations. Once we understand the complete 2026 revaluation picture will the Government be in a position to make final decisions, at Autumn Budget 2025, on the transitional relief scheme.

On the new multiplier rates, the Government will confirm these at Budget 2025, taking account of the outcomes of the 2026 revaluation as well as the broader economic and fiscal context.

Tax policy and legislation is not subject to the Better Regulation Framework Guidance which requires an Impact Assessment to accompany policy decisions.  Nevertheless, when the new multipliers are set at Budget 2025 – to take effect in the 2026-27 billing year – HM Treasury intends to publish analysis of the effects of the new multiplier arrangements.