Covid: Airport group 'halts dividend payments to councils'

The airport group runs Manchester, East Midlands and London Stansted

Greater Manchester's 10 councils have been warned they might not receive any dividend from their ownership of an airport group until 2027 because of Covid, a council leader has said.

Neil Emmott, leader of Rochdale Council, said it was a "serious blow" as the payment had been a "lifeline".

Manchester Airport Group (MAG) last paid dividends in 2019, sharing £110m amongst its shareholders.

The BBC has approached MAG for a comment.

MAG, which owns Manchester, East Midlands and London Stansted airports, is privately managed on behalf of its shareholder.

IFM Investors and Manchester City Council have an equal shareholding of 35.5% while the nine other Greater Manchester councils - including Rochdale - own a combined total of 29%.

'Hit heavily'

Speaking to BBC Radio Manchester, Mr Emmott said he had been informed that the council would not receive a dividend "for at least another four or five years because of the Covid pandemic".

"It has always been that lifeline that comes in and often helps us out. But obviously due to the pandemic the airport has not been in a position to do that," he said.

"We're going to be hit pretty heavily on that score for the next couple of years."

But Mr Emmott said Rochdale's local authority had been "very prudent" in its budget for the year.

"We think people are being hit quite heavily at the moment so we are going to try to keep those costs down as far as possible," he said.

"But at the same time we need to protect our vital frontline services that our residents expect to see for their council tax."