The Cabinet of Doncaster Council met on Wednesday 28 October 2026 to approve updated arrangements for the South Yorkshire Airport City (SYAC) project. The meeting saw the approval of a revised delivery model where the South Yorkshire Mayoral Combined Authority (SYMCA) will acquire the freehold of Doncaster Sheffield Airport and associated land, taking on future funding and financial risks.

South Yorkshire Airport City (SYAC) - Approval of updated arrangements

The Cabinet approved updated arrangements for the South Yorkshire Airport City (SYAC) project, which will see the South Yorkshire Mayoral Combined Authority (SYMCA) acquire the freehold of Doncaster Sheffield Airport and associated land. This revised model shifts future funding, financing, and associated risks to SYMCA, while Doncaster Council retains a 30% voting share and 50% economic rights in FlyDoncaster Ltd, the operating company.

Mayor Ros Jones, leading on Budget, Policy and Economic Development, explained that these changes are necessary due to ongoing commercial negotiations between SYMCA and the landowner, Peel L&P Investments (North) Limited. The decision was deemed urgent as the outcome of these negotiations had only recently been resolved.

The approved arrangements aim to facilitate the reopening of Doncaster Sheffield Airport and support the wider SYAC programme. Key benefits highlighted include public sector ownership of strategically important land, an increased level of business rates growth ringfenced for airport and Gateway East investment, and the transfer of significant operational and financial risks away from Doncaster Council.

Several questions were raised by councillors and the public regarding financial protections, expenditure, and the future of the airport. Mr Rob Burns questioned the protections against SYMCA withdrawing support for the airport, to which Mayor Jones responded that a shareholder agreement and an orderly exit strategy were being developed. Councillor Dan Dawson asked for a full financial breakdown of expenditure, with Mayor Jones stating that total costs incurred to date were just over £29 million, funded by SYMCA grant and council resources.

Councillor Dave Knight sought clarification on Gateway East and DSA04, with Mayor Jones explaining that DSA04 is approximately 104 acres of airside land allocated for employment use, and Gateway East is the development area next to the airport, part of South Yorkshire's Investment Zone. Councillor Russ Linley inquired about the Council's remaining financial exposure and safeguards, with Mayor Jones assuring that a letter of indemnity from SYMCA was being prepared and that officers could only agree terms within agreed principles.

Councillor Isaiah-John Reasbeck asked about specific veto rights for Doncaster Council, and Mayor Jones explained that protections would be embedded within the company's articles, requiring 75% shareholder approval for certain decisions. Councillor Ioan-Emanuel Craciun questioned how revised proposals addressed concerns and provided stronger taxpayer protections, with Mayor Jones outlining five key protections, including the Council no longer needing £57 million of borrowing and SYMCA taking on funding and financing risks.

Councillor Gerald Squire asked for a commitment to bring completed financial and governance arrangements back for scrutiny. Mayor Jones stated that while the principles were public, she could not commit to further meetings due to the need to avoid delays in the reopening programme, but the governance framework would go to the Overview and Scrutiny Management Committee. Councillor Rebecca Booth asked about reimbursement of expenditure, and Mayor Jones confirmed that assets transferred to FlyDoncaster Ltd would be written off the Council's balance sheet with no impact on the revenue budget, as costs were already funded by SYMCA grant or council resources.

Councillor Glyn Whiting questioned the transfer of assets for nil consideration, and Mayor Jones explained that these assets were paid for by SYMCA grant or council resources for the purpose of running the airport, and the Council's investment was recognised in the shareholding. Councillor Rachel Reed asked about the ringfencing of business rates growth, and Mayor Jones confirmed it would apply for the full 25 years, guided by a masterplan and business cases. Councillor John Reed inquired about the transfer timetable and financial arrangements for delays, with Mayor Jones stating that the timing depended on SYMCA's purchase completion and FlyDoncaster Ltd's readiness, and that the agreement with SYMCA would cover extended transition periods and costs. Councillor Maria Hollingworth asked about Doncaster's Gainshare funding, and Mayor Jones confirmed it remained committed to the airport project, with potential release for other projects if the airport became self-sustaining.

The Cabinet approved the commencement of employee consultation and necessary TUPE processes associated with the transfer of airport operations. They also delegated authority to the Service Director Finance & Technology (Section 151 Officer) and the Service Director Legal and Democratic Services (Monitoring Officer), in consultation with the Mayor, to finalise and enter into the required legal agreements.

The report considered four options: approving the proposed arrangements (recommended), retaining the existing Council-led funding model (not recommended), ceasing participation in the airport reopening programme (not recommended), and the Council acquiring the freehold directly (not recommended due to lack of funding). The recommended option was chosen because it supports the reopening of the airport while transferring significant risks to SYMCA and providing protections for Doncaster's interests.

The decision will not be implemented until after Friday 6 November 2026, following the end of the call-in period.