Heathrow trying to get out of paying its business rates bill (£113 million) to councils and government
Heathrow is trying to get out of paying its £113.2 m business rates bill, The airport’s business rates are the largest in England and Wales. They are split between Hillingdon Council – the local authority, which receives £16.3m, with the rest going to the Greater London Authority and central Government. The rates are calculated, in accordance with an estimation of Heathrow’s rental value, as at 1 April 2015 – not on the success of the company. Heathrow say their rates bill should be cut because it was “based on a world in which people flew”, but campaigners believe that they should be paying the full £113 million bill on the basis that the money goes towards the community and a failure to pay could jeopardise many local projects that are funded through the rates. Paul McGuinness, Chair of the No 3rd Runway Coalition, said: “A responsible company is expected to set aside (preferably in a separate account) all its anticipated tax liabilities. Lest we forget, the rates bill that they owe to the community is broadly the same size as the £100m dividends payment that they made, so willingly, to their foreign shareholders just a few weeks ago”.
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HEATHROW TRYING TO GET OUT OF PAYING BUSINESS RATES BILL
4th June 2020
NO 3RD RUNWAY COALITION
Heathrow Airport is trying to get out of paying its £113m business rates bill, according to an annual review of business ratepayers by Altus Group, a real estate adviser (1/2).
Heathrow owes £113.2m of business rates for the current tax year, the highest of any site in England and Wales.
Heathrow’s business rates are split between Hillingdon Council – the local authority, which receives £16.3m, with the remainder of the bill going to the Greater London Authority and central Government. The rates are calculated, in accordance with an estimation of Heathrow’s rental value, as at 1 April 2015 (1).
The Airport argue that their rates bill should be cut because it was “based on a world in which people flew”, but campaigners believe that they should be paying the full £113million bill on the basis that the money goes towards the community and a failure to pay could jeopardise many local projects that are funded through the rates.
Paul McGuinness, Chair of the No 3rd Runway Coalition, said:
“Heathrow’s claim that their rates bill is “based on a world in which people flew” is inaccurate and self-pitying, and it should be given short shrift.
“Rates are calculated on a property’s annual market rental value and size. And not on the current success, or otherwise, of the business operating it. Moreover, a responsible company is expected to set aside (preferably in a separate account) all its anticipated tax liabilities.
“And, lest we forget, the rates bill that they owe to the community – from which they now seek exemption – is broadly the same size as the £100m dividends payment that they made, so willingly, to their foreign shareholders just a few weeks ago”.
ENDS.
Notes:
1. UK airports face multimillion-pound business rates bills, FT, 1 Jun 20 https://www.ft.com/content/010d4115-47de-4e35-92c1-6c67cee9af37
2. Atlus Group, Annual Business Rates Review 2020 https://property.altusgroup.com/business-rates/annual-business-rates-review-2020/
For more information, contact:
- Rob Barnstone on 07806947050 or rob@no3rdrunwaycoalition.co.uk
See also
UK airports face £ multi-million business rates bills – money that should be paid to councils
Heathrow and Gatwick airports are facing £ multi-million business rates bills, despite the pandemic having grounded aircraft and dramatically cut their incomes. The airports are among thousands of UK companies set to appeal against their rates bills. Heathrow apparently owes £113.2m for the current tax year, the highest of any site in England and Wales, according to an annual review of business ratepayers by Altus Group, a real estate adviser. Gatwick has the next biggest bill at £29.2m. Business rates, which are paid to local councils, are calculated on the basis of rateable values — effectively an estimate of a property’s rental value at a given date. Rateable values are set according to rents on April 1 2015. They are not based on how well, or how badly, a company is doing. Heathrow bleated that the rates were based on “a world in which people flew”. The airports argue that rates relief will help them protect jobs. Some sectors – retail, hospitality or leisure – have been given rates holidays. The money from the rates is a key part of the income of councils, and if not paid, then the funding and spending of councils is at risk.
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