'On track': Doncaster Sheffield Airport officials issue 'business as usual' statement to funding questions
Officials seeking to reopen Doncaster Sheffield Airport say “there is nothing to suggest that the project isn’t on track” as the scheme approaches a crunch point.
Around £160m worth of devolution funding was formally earmarked for the project a year ago but will only be released by the office of South Yorkshire mayor Oliver Coppard if the current lease agreement between City of Doncaster Council (CDC) and landowner Peel is altered.
A report for a board meeting of the South Yorkshire Mayoral Combined Authority (SYMCA) taking place next Tuesday has said the negotiations have made “good progress” but are still “live”.
It comes amid the backdrop of previous reports that councillors were told in July that the current funding for the project is due to run out this month and that the lease renegotiation would need to conclude by the time of next week’s SYMCA meeting.
SYMCA and CDC had provided £20m of funding in February 2025 for the scheme’s costs.
Council sources have now told the BBC Local Democracy Reporter Scheme that the project will not run out of money this month but failed to provide further details.
The Yorkshire Post asked CDC to confirm whether that was accurate, why the position appears to have changed from what was previously described to councillors and when the current funding is now expected to last until.
The council did not directly answer the question but provided a statement from a spokesperson which said: “The team at the airport are continuing to work to ensure the programme remains on plan.
"While we recognise there will be speculation about the lease agreement and works to fully reopen the airport, there is nothing to suggest that the project isn’t on track.
"We have seen exceptionally high levels of demand in terms of what this airport can offer, and conversations are progressing daily with major interested parties from the private sector.
"We will update councillors and the public on progress in due course, but until then, it remains business as usual."
CDC revealed earlier this year that a key sticking point in negotiations is whether the devolution funding will be exempt from a 'turnover rent' clause allowing Peel to receive 20 per cent of annual airport income above annual base rent payments.
The lease currently lists ‘taxpayer-funded grants from local and national government’ among the areas subject to the turnover rent clause – potentially entitling Peel to millions of pounds from the devolution funding.
But Mr Coppard’s office has said funding will only be released if its contribution is not deemed as turnover. A council report in May said the issue had become a “heavily debated point” in negotiations.
Another condition of SYMCA releasing funding to CDC – relating to earmarking business rates from the neighbouring Gateway East site “to support potential adverse financial performance and investment requirements” - has now been agreed.
But a further condition relating to appointing an “experienced Programme Management Office provider” is yet to be met.