Heathrow expects tax rise to hit earnings for the year

Heathrow Airport expects its earnings for 2025 to take a hit as it weighs the cost of Labour's hike to employer's national insurance contributions.

- SAMUEL NORMAN

The airport expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) to decrease by 3% to near £1.98bn over the year due to higher operating costs brought on by Rachel Reeves’ tax grab.

The Chancellor introduced the 1.2% increase to national insurance contributions during her maiden Autumn budget, alongside £36.2bn worth of tax changes.

Heathrow said as well as higher contractual expenses, pressures from security requirements and additional service mitigations were set to add to costs.