The amount of security checks at airports have increased

Heathrow's charges should rise from �9.28 to �10.96 per passenger while Gatwick's charges should rise from �4.91 to �5.48, the watchdog said.

The report also said BAA had failed to prevent new security measures from causing "unacceptable delays".

BAA said the Commission's funding proposal would make it hard to improve.

"At a time of increased complexity and risk in the UK airports sector, the Commission is proposing - at Heathrow - a dramatic reduction in returns," said the airport operator.

The airports authority insisted it was "absolutely committed to improving passenger service", but added that it saw "little in the Commission's report which delivers the incentives to transform the airports".

Meanwhile the Civil Aviation Authority (CAA) said it would make proposals that "remedy the adverse effects of the airports' conduct".

'Cutting prices'

The latest report puts a figure on airport charges over the next five years, and comes after a six-month enquiry.

Beyond the 2008-2009 timeframe, the Commission recommended that charges at Heathrow should rise in line with inflation, or the retail price index (RPI), plus 7.5% per year, while Gatwick's charges should rise slower than inflation at RPI minus 0.5%.

"It is striking that at Gatwick, one of the busiest yet cheapest airports in Europe, the Commission is recommending cutting prices," said BAA.

Security measures have increased at airports since the events in New York on 11 September 2001, prompting tighter controls on luggage allowances and check-in requirements.