What's Happening?
Gatwick Airport's chief executive, Stewart Wingate, has expressed concerns that upcoming changes to business rates could adversely affect the airport's expansion plans. The business rate revaluation, set to reflect April 2024 market values, may result in a significant increase in costs for Gatwick, which is already one of the largest rate payers in the UK. This could hinder the airport's ability to invest in its planned £2.2 billion expansion, which aims to increase passenger capacity and create thousands of jobs.
Why It's Important?
The potential rise in business rates poses a challenge to Gatwick's growth strategy, which is crucial for regional economic development and job creation. The expansion project is expected to boost the local economy by £1 billion annually and support 14,000 new jobs. If the rate hike impacts Gatwick's investment capacity, it could stall these economic benefits and affect the airport's competitive position in the aviation sector.
What's Next?
Gatwick Airport is working with airport-sector representatives to negotiate a feasible solution with the Treasury. A final decision on the expansion project is anticipated in October, with the government currently 'minded to approve' the plan. The airport is also seeking support from the Department for Transport to improve rail services, which could enhance passenger access and bolster the expansion's viability.
