Luton Airport boss hits back at claims expansion plans could be at risk over business rate hikes
The director of the company that owns Luton Airport has called a report “wholly inaccurate” for suggesting expansion plans could be impacted by changes to business rates.
Managing director of Luton Rising, Nick Platts, has blasted a report by City AM, published this morning (January 7), that claimed Chancellor Rachel Reeves’ new business rates could affect the airport’s growth plans.
The report claimed the airport’s business rates bill could more than double by 2029, “with payments to HMRC set to rise from just under £7m this year to £14.5m in three years, according to fresh analysis”.
It also included a statement from Luton Airport, that ‘...any extra tax burden would be “likely to impact” investment decisions’.
But Mr Platts claimed: “As the applicant and promoter of the scheme, we want to be as clear as we can be that there is absolutely no threat to the airport’s expansion as consented through the Development Consent Order from the changes that are taking place in business rates following the Budget. We are extremely disappointed with the angle and headline of the story, and utterly reject its assertions.
“Luton Rising continues to invest and work at pace with a range of partners to ensure delivery of the consented growth at the earliest opportunity. New environmental monitoring began on the first day of this new year, and we continue to work closely with the airport operator on delivering expansion of London Luton Airport.”
The government approved proposals to build a new airport terminal and increase capacity from 18m to 32m a year by 2043 last year.
A spokesperson for London Luton Airport said: “With airport expansion at the heart of the Chancellor’s growth mission, it’s important that all Government policies align to support this ambition. Any additional tax burden is likely to impact future investment decisions, however we welcome the Treasury’s engagement on this important issue and as an industry continue to work with them as part of the long-term review into how airport business rates are calculated”.