‘Absolutely no threat’ to expansion plans as Luton Airport boss rebuffs business rates rise report

The Luton Council-owned company, which owns Luton Airport has issued a robust response to a newspaper report suggesting that changes to business rates could put London Luton Airport’s expansion plans at risk. 

City AM published an article yesterday (January 7), claiming that rising business rates following last year’s Budget could jeopardise investment at the airport and potentially impact long-term plans for a new terminal and increased passenger capacity. 

The report pointed to analysis suggesting business rates bills could more than double by 2029, and quoted industry concerns that higher taxes might lead to some airports reconsidering planned investments.

Luton Rising has said that the assertions in the article were “wholly inaccurate” and denied there was any threat to the consented growth of the airport.

In a statement issued in response, the company’s managing director Nick Platts said the company was, “extremely disappointed with the angle and headline of the story, and utterly reject its assertions.”

He added: “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,” Mr Platts said. He added that Luton Rising continued to invest and work with partners to deliver the consented growth “at the earliest opportunity”, and noted new environmental monitoring had begun on the first day of the new year.

The expansion plans in question relate to a Development Consent Order (DCO) approved by the Secretary of State for Transport that would increase Luton Airport’s annual capacity from around 18 million to 32 million passengers by the mid-2040s. The expansion is proposed to bring significant job creation and economic benefits to Luton and the wider region, along with environmental commitments.

Airport operators had expressed to City AM that higher business rates “are likely to impact investment decisions”, reflecting broader industry concerns that UK airports face rising costs which could affect future development plans. Other UK airports, including Gatwick and Manchester, have also raised worries about business rates increases after revaluations announced in last year’s Budget. 

But Luton Rising said the City AM report was not supported by the comments the operating company supplied and described the episode as “a serious piece of misreporting”.

Luton Airport’s expansion has previously drawn opposition, but last month the High Court rejected a legal challenge from local campaigners, Luton and District Association for the Control of Aircraft Noise group (LADACAN), which opposes the plans and says the extra flights will harm the climate and the Chilterns National Landscape.

In its statement, Luton Rising reiterated that it was working “closely with the airport operator on delivering expansion of London Luton Airport” and dismissed claims that recent changes to business rates policy threatened its long-term growth ambitions.