LARS is funded from route charges via Eurocontrol:
How LARS is funded
7. The current level of funding for LARS is approximately £1.6 million per year. The service is paid for via
the Eurocontrol route charges system as an element of the UK's unit rate. All aircraft above 5.7 tonnes pay
route charges and thereby contribute to the cost of LARS. Aircraft between 2 and 5.7 tonnes flying under
instrument flight rules (IFR) also pay route charges. Aircraft between 2 and 5.7 tonnes flying under visual
flight rules (VFR) and all aircraft below 2 tonnes are exempt from route charges. Effectively, this means that
LARS is currently funded by commercial airlines and business aviation of whatever nationality flying in UK
airspace.
Go to
www.dft.gov.uk type LARS in search and the link to the whole report will appear.
Funding is allocated to units by opening hours, so Farnborough gets paid not a bean more for being the busiest LARS unit in the UK.