Council agrees to borrow £57m to reopen airport

Doncaster Sheffield Airport closed in 2022

Councillors have agreed to take out a £57m loan to help reopen Doncaster Sheffield Airport.

A meeting of City of Doncaster Council earlier approved the borrowing to pay for the upfront costs. The project's overall cost is £193m.

Councillors voted overwhelmingly in support, with 42 in favour and nine against. However, a council report said the operation was expected to make a loss for the first nine years - up from the previous estimate of five.

Doncaster Mayor Ros Jones said: "Quite simply without taking out the borrowing the airport cannot proceed – this is the magnitude of the decision today. I know that the airport can be a success and I know the council will give us their support."

Earlier this week Mayor Jones and the leader of the council's Reform UK group, Coun Guy Aston, issued a joint statement saying they were in agreement on the loan.

In September, South Yorkshire council leaders and regional mayor Oliver Coppard approved the spending of almost £160m of public money on the airport.

A council report said the £160m would only be released in annual instalments and would not cover all the start-up costs of the first few years.

Councillors were therefore asked to approve the £57m bridging loan until the company set up to run the airport, Fly Doncaster, begins to make a profit.

The council said the borrowing would peak by 2032-33 before reducing and would not impact on the wider council budget.

A meeting of the full council at Doncaster discussing the airport

In October it was then revealed the cost of reopening the site, which closed in 2022, had risen to £193m.

In addition to the £160m, the South Yorkshire Mayoral Combined Authority had already allocated £16.1m to the project, with City of Doncaster Council providing £17.4m.

Councillors were also warned that if the operating costs of the airport rose by another 20% within the first three years, it could close again.

Conservatives councillor Nick Allen voted against it and said: "This is like taking out a credit card to pay someone's mortgage, with no benefits at the end."

The airport has been closed since operator and landowner Peel Group said it was no longer financially viable.

Freight operations are expected to start in 2027, with a fully operational airport including passenger flights planned for summer 2028.

Dan Fell, chief executive of Doncaster Chamber, said the loan was an "important milestone" which reflected the huge public and business support.

"The Chamber looks forward to working closely with City of Doncaster Council, Fly Doncaster, and other partners to help address risks, maintain transparency, and ensure this project is delivered robustly.

"South Yorkshire's businesses know the enormous potential of DSA, and we remain committed to playing our part in making the airport a resounding success for the region."

Listen to highlights from South Yorkshire on BBC Sounds, catch up with the latest episode of Look North