Gatwick Airport boss urges Chancellor to resist tax hikes that could hinder expansion plans

Gatwick Airport's boss, Stewart Wingate, has urged Chancellor Rachel Reeves not to raise taxes on airports, airlines, and passengers in her autumn Budget, as it could limit demand for flights and jeopardize expansion plans. Wingate fears that increased levies will lead to a six or seven-fold increase in Gatwick's business rates bill, potentially taking it to £270m, equivalent to almost 80% of net profits in the last fiscal year. The new runway is expected to create 14,000 jobs and add £1bn to the economy.

Gatwick Airport's CEO, Stewart Wingate, has called on Chancellor Rachel Reeves to avoid raising taxes on airports, airlines, and passengers in her upcoming autumn Budget. Wingate fears that increased levies could stifle demand for flights and jeopardize the airport's expansion plans, particularly the development of its second runway.

The new runway, valued at £2.2 billion, is expected to create 14,000 jobs and contribute £1 billion annually to the UK economy. However, Wingate warned that a significant increase in business rates could hinder these economic benefits. He estimates that a six or seven-fold increase in Gatwick's business rates bill could push it to £270 million, representing nearly 80% of the airport's net profits from the last fiscal year.

Gatwick's expansion plan involves shifting its northern runway by 12 metres to enable routine operations. This development is expected to boost passenger capacity and trade, aligning with the UK government's broader strategy to support aviation growth while considering environmental sustainability UK government approves second runway plan at London Gatwick Airport^[1].

The decision to approve Gatwick's second runway has been met with both support and opposition. Proponents argue that the expansion is crucial for keeping the UK competitive in the aviation market and for economic growth. However, opponents, including environmental and local groups, have expressed concerns about noise pollution, traffic congestion, and climate change impacts.

The UK government has emphasized that all airport expansions must comply with legally binding climate change commitments and strict environmental requirements. Gatwick will be required to submit further details on carbon impacts by April 2026 Gatwick Airport Expansion Approved Amid Economic And Climate Debate^[2].

The coming years will be critical for Gatwick to deliver on its promises of economic growth, environmental stewardship, and community well-being. The airport's ability to balance these objectives will be closely watched by investors and financial professionals.