Edinburgh Airport passengers face a sharp rise in pick-up and drop-off charges after it was handed a 142% hike in business rates.
Charges will increase by £2.50 to £8.50 to help cover an £8 million addition to the airport’s bill, described by CEO Gordon Dewar as “unacceptable” and damaging to its investment plans.
It is already the highest ratepayer in the Lothians and will now pay more in business rates than the next three largest ratepayers in the region combined.
It also represents the largest increase in costs faced by any airport in Scotland and the UK and contrasts with the treatment of Glasgow (+51.5%) and Prestwick (+39.1%).
Edinburgh Airport said it faces difficult decisions to cover the cost and will also be forced to remove the 50% reduction for electric vehicles from 18 May.
The free drop-off and pick-up area, where passengers can park for up to 30 minutes without charge, will remain in place with more spaces added.
Gordon Dewar, chief executive of Edinburgh Airport, said: “This decision to impose an unplanned and wholly disproportionate £8 million rates increase has an immediate and negative impact on our business.
“We made this clear in correspondence with the Lothians Assessor, who set the increase, and in discussions with the Scottish Government, which has endorsed it.
“A 142% increase reduces our ability to invest, grow and compete. In practical terms, it equates to funding around 200 jobs, two aircraft stands, or five new security lanes. It is not a cost that can be absorbed; it must be covered, and trade-offs like this are unfortunately unavoidable.
“Like many across the hospitality and tourism sectors who have seen business rates soar, we have no choice but to pass part of this cost on to passengers.
“We had not planned to raise fees this year, but the absence of a transitional relief scheme – equivalent to that available in England and Wales – leaves us with no alternative.”
Edinburgh Airport has written to the Convenor of the Lothian Valuation Joint Board, which sets non-domestic rates, as well as the First Minister and the Public Finance Minister, to outline its concerns about the current rates process.
Mr Dewar added: “We have always accepted that, given our size, we should pay more, but the scale of this increase is simply unacceptable.
“We have made clear to both the Assessor and the Scottish Government that a system which produces such markedly different outcomes for comparable assets operating within the same national economy cannot credibly be described as fair, proportionate or fit for a modern Scotland. This systemic inconsistency lies at the heart of our concern.
“While we welcome the manifesto commitment to review the business rates system, the harm caused by the current framework is already confirmed and must be addressed.
“We hope a fair and meaningful review can be concluded within this parliamentary term, and we will continue to engage with Ministers, including through early discussions, to help drive that process.”
#Airport #raises #dropoff #charge #hike #rates #Daily #Business