Getlink, the operator of the Channel Tunnel, has officially frozen all future UK rail investments, citing a “tripling” of its tax burden that renders new projects economically impossible.
The decision follows a move by the UK’s Valuation Office Agency to hike the tunnel’s business rates from £22 million to £65 million per year by 2028. Getlink CEO Yann Leriche branded the 200% increase “unsustainable” and “confiscatory,” claiming the effective tax rate on new UK infrastructure projects has now hit a staggering 75%.
The financial shock is expected to ripple across the Channel. Eurotunnel confirmed it will pass at least half of the tax increase onto operators like Eurostar via higher access charges, threatening a fresh surge in passenger ticket prices.
The Eurotunnel investment freeze comes at a precarious time for Ashford International. While the station infrastructure is technically “ready,” this dispute could create significant new hurdles for the return of international services.