A significant motion to rescind a previous borrowing decision concerning Doncaster Sheffield Airport is scheduled for discussion at the Council meeting. This meeting will also cover various reports and updates related to council operations and ongoing projects.

Motion to Rescind Borrowing Decision for Doncaster Sheffield Airport

The most prominent item on the agenda is a motion proposed by Councillor Craig Ward and seconded by Councillor Rachel Reed, seeking to rescind a decision made by Full Council on 27 November 2025. This original decision approved borrowing of up to £57 million and total project commitments of £193 million for the reopening of Doncaster Sheffield Airport (DSA) as part of the South Yorkshire Airport City (SYAC) programme.

The motion outlines concerns that the decision to approve borrowing was based on materially incomplete information. Specifically, it highlights that members were not provided with the terms of the Superior Lease prior to the vote, and that the Mayor confirmed these terms were deliberately withheld. The motion details that the Superior Lease contains provisions allowing Peel, the landlord, to terminate the airport lease based on planning decisions by the Council, creating a structural conflict between the Council's roles as tenant and local planning authority. This conflict, along with the lease's passenger threshold requirements and subsequent projections falling below these thresholds, were allegedly not disclosed to Full Council.

The motion argues that members were unable to exercise proper and informed judgment and therefore the decision should be rescinded. It clarifies that this motion does not determine the future merits of any airport project but focuses on the process by which the borrowing decision was made.

If the motion is approved, the Council would resolve to rescind the November 2025 borrowing decision. It would also recommend that the Overview and Scrutiny Management Committee review the adequacy and accuracy of information provided to members regarding the airport lease, including termination provisions and the structural conflict. Furthermore, it would recommend that the Audit Committee's governance examination include a review of risk management, internal controls, and conflicts of interest related to the borrowing decision. The motion also includes a directive regarding the preparation of any statutory reports by an officer with no conflict of interest, though the report notes this directive has no legal basis and is not within the Council's power to direct statutory officers.

The accompanying report details the significant financial, legal, and risk implications of rescinding the borrowing decision. It states that if the decision is rescinded, the programme would be unable to continue without alternative funding being identified urgently, potentially leading to the termination of the airport reopening programme and the Council becoming responsible for significant unfunded future liabilities estimated at approximately £48.6 million to 2031. Conversely, retaining the borrowing decision would allow the programme to continue, but the Council would remain exposed to delivery, operational, and financial performance risks.

South Yorkshire Airport City Programme Update

The report also provides an update on the South Yorkshire Airport City (SYAC) programme, which aims to reopen and relicense Doncaster Sheffield Airport (DSA) and develop a cluster of economic activity. The programme has received significant public and political support, including petitions with around 130,000 signatures. The borrowing decision approved in November 2025 was intended to manage the timing difference between programme expenditure and the receipt of anticipated South Yorkshire Mayoral Combined Authority (SYMCA) gainshare funding.

The report details the complexities of the Superior Lease, including options to determine or break clauses related to passenger numbers and planning permissions. It explains that amended lease terms have been agreed with the landlord, including a rebasing of minimum passenger and freight numbers. The report also addresses the turnover rent mechanism within the lease and ongoing commercial discussions with SYMCA and the landowner.

Details of the procurement process for an operator are outlined, including the engagement of FP Airports Ltd in partnership with Munich Airport International, and the subsequent exploration of CDC's allocation of gainshare funding. The report also covers the subsidy control assessment undertaken in relation to the proposed public sector investment, with the Subsidy Advice Unit (SAU) providing non-binding advice.

The report includes detailed financial implications, with a table outlining estimated borrowing requirements and cumulative costs. It also details past and sunk costs incurred by the Council, and the potential financial impact of delays to the reopening programme, estimating a net adverse financial impact of £11.8 million over the main loan period to 2034/35 for a 12-month delay. Future costs and liabilities associated with programme cessation, including lease payments, site costs, redundancy, and contract cessation costs, are also detailed.

The report presents two options for the Council: to approve the motion to rescind the borrowing decision, leading to programme cessation and the need to identify funding for liabilities, or to not approve the motion, allowing the programme to continue under existing approvals and financial structures, with associated risks.

Other Matters

The agenda also indicates that the meeting will consider other standard council business, including apologies for absence and the extent to which the public and press may be excluded from the meeting. There are no other specific reports or discussions detailed in the provided documents for this extraordinary meeting.