Discussions surrounding a crucial £159.5 million funding package for the reopening of Doncaster Sheffield Airport have reached a standstill. The South Yorkshire Mayoral Combined Authority (SYMCA), led by Mayor Oliver Coppard, has mandated changes to a controversial 125-year lease agreement between the City of Doncaster Council (CDC) and landowner Peel before the funds can be released.
The current lease, signed in March 2024, stipulates that 20 percent of the airport’s annual turnover, including taxpayer-funded grants, must be paid to Peel. Furthermore, the lease includes break clauses that could be activated unless passenger numbers exceed even the most optimistic forecasts for the airport’s future operations.
In September 2023, the SYMCA approved the funding to facilitate the airport’s reopening through a council-owned entity known as FlyDoncaster. This funding represents Doncaster’s share of government devolution funds allocated until 2050. The conditional release of these funds hinges on the renegotiation of specific lease provisions. A board paper from SYMCA indicated that an “in-principle agreement” had been reached with Peel regarding which areas of the lease could be revisited.
Despite these discussions, recent information suggests that no formal changes to the lease terms have been confirmed. A SYMCA spokesperson acknowledged that while there has been “positive progress,” the release of funding remains contingent on the completion of these negotiations.
The CDC has also commented on the ongoing dialogue with Peel. A spokesperson emphasized the importance of confidentiality regarding the lease’s terms, noting that negotiations are inherently dynamic and may evolve over time. They stressed that the council is focused on ensuring all necessary components for the airport’s reopening are in place as quickly as possible.
The SYMCA, in its September report, highlighted concerns about the lease’s break clauses, which favor the landowner regarding passenger and freight traffic. Discussions are ongoing regarding the clarification of turnover rent points within the lease, with both parties working towards a resolution.
“This effort is vital for delivering jobs and opportunities to our communities,” the SYMCA spokesperson stated, reiterating the commitment to collaborate with the CDC for the successful reopening of the airport.
As negotiations continue, the future of Doncaster Sheffield Airport remains uncertain, pending the resolution of key lease elements that will determine the release of much-needed funding for the project.
