COST WILL RISE TO EYE-WATERING £8.50
Changes to Edinburgh Airport’s pricing will raise pick-up and drop-off charges to £8.50 to help cover an extra £8 million business rates bill recently imposed on the terminal.
The move follows a 142% rise in business rates, meaning the airport – already the highest rates payer in the Lothians – will now pay more in business rates than the next three largest ratepayers in the region combined. This represents the largest increase in costs faced by any airport in Scotland and the UK.
It stands in stark contrast to the treatment of comparable Scottish airports, including Glasgow (+51.5%) and Prestwick (+39.1%).
As a result, Edinburgh Airport now faces difficult decisions to cover the cost and will also be forced to remove the 50% reduction for electric vehicles. This will come into effect on 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. A free bus service from the free area to the terminal will also resume.
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.”
More information on the Free pick up and drop off area(Opens in a new tab).
