Council bosses say it is “not the time” to seek private investment towards the reopening of Doncaster Sheffield Airport as a decision looms on their plan to reopen the site themselves.

A City of Doncaster Council spokesperson said seeking private investment at this time would be an “unhelpful distraction” as the authority looks to progress £193m plans to reopen the airport itself via a council-owned company called FlyDoncaster.

Councillors are due to vote on releasing the funding to allow the plan to progress on November 27.

The council has set out its position after being criticised this week by a consortium which says it is willing to offer £100m to buy FlyDoncaster and take the reopening project forward itself. Chris Jordan, the CEO of Spanish-based Labyrinth International Investments which is leading the consortium, has reportedly written to Keir Starmer to claim the council had not fully informed councillors and the public about the bid.

Doncaster Sheffield Airport pictured in September. PIC: Tony Johnson

placeholder image — Doncaster Sheffield Airport pictured in September. PIC: Tony Johnson

The council said it refuted allegations from the consortium and said the proposal being made has not come with “substantial proof of funds”.

Grant Freeman, UK strategic advisor to Labyrinth, said the consortium has been pushing the council for several months to complete a due diligence process which would include provision of detailed proof of funds. He said: “We are a globally-respected investor group that has the funds.”

In a statement issued prior to that comment, the council spokesperson said: “We are always interested in genuine and substantiated offers and will, as expected, apply proper due diligence to them to ensure they are robust. There are other interested parties who have similarly made contact with us and due to confidentiality, we cannot comment further.

“We have repeatedly said that we and our funding partners want to seek financial investment as soon as possible however we recognise that the procurement exercise demonstrated that the public sector needs to be, as is often the case, the investor of first resort.

“We will, therefore, be going out to the market again when the time is right and the time is not now because our focus is on securing a certificated and licenced operating airport. Without these essentials, then there is no airport.

“We are engaged with our technical and financial advisors, and they confirm that now is not the time to go out to the market. Not only does this take time but would be an unhelpful distraction in achieving the key elements needed to fully reopen the airport as soon as possible.

“The decision of when to go out to the market will be one for the council and FlyDoncaster to make in consultation with senior politicians to ensure we get the best return for our taxpayers.”

Earlier this month, Doncaster Council chief executive Damian Allen indicated he anticipated substantial private investor interest in DSA once the reopened site is turning a profit - which is expected to occur in the mid-2030s. He highlighted a recent deal which saw a Canadian pension fund buy Glasgow, Aberdeen and Southampton airports for £1.53bn.

A recent council report set out that losses of £81.1m are expected in the first nine years of DSA operating, with projected profits of £230m across the 15 years after that.

Doncaster Council was contacted for comment in relation to Mr Freeman’s remarks about the due diligence process but was yet to respond at time of publication.