Doncaster Sheffield Airport: Key financial reports being kept secret by council and mayor's office

The Yorkshire Post submitted applications to the South Yorkshire Mayoral Combined Authority for the release of both the business plan for the airport project and a ‘risk report’ conducted by the organisation which had led to delaying a final decision on reopening until this summer to seek independent advice.

Both requests have been rejected, as was a further request to City of Doncaster Council for its submission to the Government’s Subsidy Advice Unit (SAU).

After failing to find a private operator to reopen the airport, the council has established its own company to open the airport and intends to lend it over £105m using its share of South Yorkshire devolution funding. It has hired Munich Airport International to operate the site.

The SAU made an assessment of the plan earlier this year as the low rate of interest for the loans equates to an effective grant of almost £90m.

The report identified six areas for improvement in the council’s assessment of compliance with subsidy rules, including a need for clearer explanations on passenger growth forecasts, the impact on competitors and potential negative consequences from the subsidy.

The council rejected a request for its submission to the SAU on both the grounds that it included commercially sensitive information and also that releasing the report would inhibit the “safe space" required by council officials for ongoing discussions surrounding the subsidy issue.

The response said: “Release of the assessment into the public domain... would be likely to negatively impact the ability of the council to offer free and frank provision of advice and an exchange of views in relation to the subsidy.”

The council’s business plan has not been made public but the authority has said it shows the scheme will act as a catalyst for wider regeneration around the site involving new homes and employment land, with forecasts that 5,000 direct jobs could be created and a potential economic benefit of £9 for every £1 spent.

A request to SYMCA for the full release of the business plan for the airport project, which was discussed in an authority meeting in November, was rejected on the grounds that the business case is yet to be finalised and that “releasing this information at this stage could lead to misunderstandings or misinterpretations”.

The same reasoning was given for also refusing to release the “risk report” which was considered by SYMCA board members in February. The response said a “finalised version” will be discussed by the board at a future point.

In February, the risk report was not made public but was referred to in a connected board paper as a key reason for delaying a decision on reopening.

That said: “Whilst the projected benefits are significant, there is inherent and equally significant financial risk to the public sector.

"An internally prepared risk report has noted that conditionality within the superior-headlease between the freeholder and CDC is a limiting factor in the ability to generate the long-term stability needed to attract private investment. This issue, coupled with the inherent commercial challenges in reestablishing a complex business and recapturing market-share, has led to a 100 per cent publicly funded proposal being brought forward.

"The significant risks alongside recent Government announcements mean that there is a requirement to now seek further independent advice and assurance on the project on behalf of residents of South Yorkshire.”

The council signed a 125-year lease for the airport land with owner Peel in March 2024.

Last month, it was revealed that the minimum cost of lease payments is £363m but there is a break clause for the council in 2031 if the scheme “proves unviable”.

Earlier this month, an additional £30m towards the project has been pledged by South Yorkshire mayor Oliver Coppard from future devolution funding with the backing of Sir Keir Starmer. The Prime Minister recently told The Yorkshire Post during a visit to the airport that he is convinced the scheme will prove good value for money for taxpayers.

He said reopening has “got the potential to drive growth right across the North, especially of course here in Doncaster”.