Agenda, decisions and minutes

The Chair welcomed Leaders and apologies were noted as above.

The Mayor paid tribute to Harvey Willgoose, a 15-year-old student who tragically lost his life the week prior, extending condolences to his family and the school community. He reaffirmed his commitment to tackling knife crime and noted South Yorkshire Police’s zero-tolerance campaign and ongoing efforts to address youth violence.

The Police and Crime Panel unanimously supported a council tax increase (£14 for Band D and £9.33 for Band A) to strengthen neighbourhood policing, reduce antisocial behaviour, and invest in crime prevention, including knife crime initiatives.

The Mayor welcomed the Chancellor of the Exchequer’s support for reopening Doncaster-Sheffield Airport and the South Yorkshire Airport City project.

The Mayoral Economic Advisory Committee meeting had met recently in Doncaster and had focused on investment, health, and innovation.

The Mayor concluded by encouraging public participation for the recent launch of a public consultation around dogs on trams which was due to close on 3^rd March 2025.

To determine whether there are any additional items of business which by reason of special circumstances the Chair is of the opinion should be considered at the meeting; the reason(s) for such urgency to be stated.

None.

Members to Resolve:

That in accordance with paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972, the public be excluded from the meeting during consideration of Agenda Item 10 (Appendix 1) on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the press and public were present there would be disclosure to them of exempt information and for the reasons set out in the report that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

Agenda item 10 Appendix 1 was considered in the absence of public and press in accordance with paragraph 3 of Part 1 of Schedule 12A to the Local Government Act 1972.

Mayor Jones declared interest in relation to agenda item 10.

None.

None.

The following question regarding South Yorkshire Airport City from WM Yau was presented:

1. The stop-go decision will cost a one off £16.1m, is Doncaster bearing that cost?

2. If it is go, who is underwriting the financial risk of the loan?

3. Who is bearing the trading risk of Fly Doncaster?

4. If Fly Doncaster fails, is Doncaster's Gainshare sunk?

5. What happened to the private sector investor and are there talks with any prospective investor?

6. Does the continued absence of a private sector investor mean the break clause will be activated?

The Chair explained that the £16.1m represented cumulative grant funding from SYMCA to the City of Doncaster Council (CDC). Should the £10m be approved CDC would use this funding to cover costs and transactions.

No loan finance would be provided from CDC to Fly Doncaster at this stage, with CDC directly incurring costs. A decision on Gainshare funding had not yet been made, as the funds under consideration remained separate from the gainshare investment programme. Further work was underway to provide the necessary assurances before a final decision.

The procurement process had concluded without securing an operator capable of bringing private investment. While discussions on private sector involvement remained ongoing, CDC had prioritised operational matters in the short term.

Munich Airports International had been engaged to support the establishment of operations and long-term business development. CDC remained confident that passenger and freight forecasts could be met.

The following question from Cllr Jane Cox was presented:

Can I submit the following question to Oliver Coppard on agenda item 10.

Given the decision to delay funding until an independent assessment is completed, what specific metrics or criteria will be used to examine the financial viability of the business case in order to determine a good use of public money.

Can I submit the following question to Ros Jones on agenda item 10

Given the significant increase in costs from the initial outline business case to over £145 million, what mechanisms are in place to safeguard public investment if the airport does not achieve the projected economic benefits.

The Chair noted that all projects and programmes seeking funding were appraised for value for money using HM Treasury Green Book guidance. Assessments considered costs, benefits, risks, uncertainties, and wider impacts. A benefit cost ratio was calculated where possible, alongside qualitative and quantitative evaluations of non-monetised impacts.

Given the project's complexity and risk, further work would be undertaken to assess its commercial viability. Additional independent advice and assurance would be sought to ensure risks were effectively managed in both the short and long term.

Mayor Jones confirmed that a range of risks and mitigations had been considered. Following the Outline and Full Business Cases, along with an independent assessment by Bradshaws, further assurances had been sought. A final report would be presented in Summer 2025.

RESOLVED that the Leaders agreed to a later ratification of minutes at the meeting held on the 18^th March.

RESOLVED that the Leaders agreed to a later ratification of minutes at the meeting held on the 18^th March.

RESOLVED That the Board:

1. Note the progress made in establishing the wholly owned SPV, Fly Doncaster and in securing an operator partner.

2. Note the publication of a report by the Subsidy Advice Unit (SAU) and further work being undertaken by CDC to consider the SAU’s recommendations.

3. Note the commitment of HM Government to working with local partners to support creating South Yorkshire Airport City.

4. Agree to commission independent advice and assurance work as outlined at paragraphs 1.22 and 1.23 with a delegation to develop detailed terms of reference to the Chief Executive and Head of Paid Service in in consultation with the Mayor.

5. Approve the award to CDC of revenue funding of up to £10m from uncommitted treasury management resource to support ongoing costs and progression of time critical reinstatement activity, to be reimbursed from future year CDC Gainshare funding.

6. Note that in the event that Government funding is made available to support these costs this funding will be used in the first instance.

7. Delegate authority to the Chief Executive and Head of Paid Service, in consultation with the section 73 Officer and Monitoring Officer to agree terms and conditions of funding and approve drawdown of funding by CDC

A report on South Yorkshire Airport City was presented and it was noted that:

• The report proposed advancing £10 million in revenue funding to CDC to support necessary activity, while further work was undertaken ahead of a final decision in the Summer.
• Mayor Jones felt the reopening was crucial to long-term economic benefits, including employment opportunities and an improved benefit cost ratio for the region.
• Significant developments had taken place since the matter was last discussed by Leaders, including the conclusion of a procurement exercise, which had not resulted in securing a private operator.
• CDC had established a subsidiary, FlyDoncaster Ltd, to form a credible international airport operator in partnership with Munich Airports International. Legal teams at CDC were working through the associated issues, with the necessary documentation undergoing independent assurance.
• The Chancellor of the Exchequer had reaffirmed the Government’s commitment to the airport.

·       An internal risk report, commissioned in November, was provided as an exempt appendix, and highlights the need for the MCA to ensure that all identified risks could be effectively managed.

Leaders welcomed the report, with Barnsley expressing full support for the progress made towards reopening the airport.

Following the resolution, Mayor Jones expressed thanks to Leaders for their continued support and financial backing, which enabled further work towards reopening the airport.

RESOLVED That the Board:

1. Noted the progress made in establishing the wholly owned SPV, Fly Doncaster, and in securing an operator partner.
2. Noted the publication of a report by the Subsidy Advice Unit (SAU) and further work undertaken by CDC to consider the SAU’s recommendations.
3. Noted the commitment of HM Government to working with local partners to support creating South Yorkshire Airport City.
4. Agreed to commission independent advice and assurance work as outlined at paragraphs 1.22 and 1.23, with a delegation to develop detailed terms of reference to the Chief Executive and Head of Paid Service in consultation with the Mayor.
5. Approved the award to CDC of revenue funding of up to £10m from uncommitted treasury management resource to support ongoing costs and progression of time-critical reinstatement activity, to be reimbursed from future year CDC Gainshare funding.
6. Noted that in the event that Government funding was made available to support these costs, this funding would be used in the first instance.
7. Delegated authority to the Chief Executive and Head of Paid Service, in consultation with the Section 73 Officer and Monitoring Officer, to agree terms and conditions of funding and approve drawdown of funding by CDC.

RESOLVED That the Board note the decisions and delegations made.

The Decisions & Delegated Authority Report was presented.

RESOLVED That the Board note the decisions and delegations made.