economy
February 1, 2026
UK hospitality firms demand more help with business rates amid questions over Heathrow discount
Airports identified as biggest winners of government’s £4.3bn support package with Heathrow alone taking £900m discount
TL;DR
- Heathrow Airport is set to benefit from nearly £900 million in business rates transitional relief over three years.
- This relief is part of a larger £4.3 billion government fund for businesses facing increased rates bills.
- Despite the relief, Heathrow's business rates will still rise by £50 million to £171 million this year.
- Hotels, restaurants, and nightclubs have not received additional support beyond the capped 15% rise in business rates.
- The Night Times Industries Association (NTIA) claims nightclubs are being 'explicitly excluded' from targeted help offered to pubs and live music venues.
- Industry representatives warn that rising business rates, coupled with increased costs for wages, energy, and alcohol duty, could lead to more business closures.
- Airports UK notes that while transitional relief is welcome, significant business rates increases could impact airfares and airport investment.
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