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Extraordinary Meeting, Council - Monday, 11th May, 2026 10.00 am
May 11, 2026 at 10:00 am Council View on council websiteSummary
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The Council met on Monday 11 May 2026 to consider a motion to rescind a previous decision regarding borrowing for the Doncaster Sheffield Airport project. The meeting's agenda focused entirely on this single, significant item.
Motion to Rescind Borrowing Decision for Doncaster Sheffield Airport
The primary item scheduled for discussion was 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 had approved borrowing of up to £57 million and total project commitments of £193 million in connection with the reopening of Doncaster Sheffield Airport (DSA) as part of the South Yorkshire Airport City (SYAC) programme.
The motion outlined several points for consideration:
- Incomplete Information: It was noted that members were not provided with the terms of the Superior Lease prior to the November 2025 vote. The Mayor had confirmed that lease contents were deliberately withheld from members.
- Lease Termination Provisions: The Superior Lease reportedly contains provisions allowing Peel, the landowner, to terminate the airport lease based on planning decisions made by the Council as the local planning authority. This created a structural conflict, as the Council was simultaneously the tenant and the planning authority, a conflict not disclosed to Full Council before the borrowing vote. It was also stated that planning committee members were not informed of these lease termination provisions when considering Peel's planning applications.
- Passenger Thresholds: The Superior Lease allegedly includes a provision requiring the airport to meet a specified minimum passenger threshold by a defined break date to avoid triggering Peel's right to terminate. The motion highlighted that a March 2026 submission projected passenger numbers falling below this contractual threshold, a detail not presented to members when they approved the £193 million commitment.
- Basis for Decision: The motion argued that the 27 November 2025 decision was taken on the basis of materially incomplete information, making it susceptible to challenge. It was contended that members were unable to exercise proper and informed judgment on a matter of significant financial consequence.
The motion proposed that the Council should:
- Rescind the November 2025 decision to approve borrowing of up to £57 million for the Doncaster Sheffield Airport project.
- Recommend to the Overview and Scrutiny Management Committee that it review the adequacy and accuracy of information provided to members regarding the airport lease, including termination provisions and the structural conflict of interest.
- Recommend to the Audit Committee that its governance examination include a review of risk management, internal controls, conflicts of interest (including officer directorships of Fly Doncaster Ltd), and the completeness and accuracy of information provided to members.
- Direct that any statutory report required under Section 5 of the Local Government and Housing Act 1989 or Section 114 of the Local Government Finance Act 1988 be prepared by an officer with no conflict of interest.
The report accompanying the motion detailed the background, financial, legal, and risk implications of both approving and not approving the motion. It explained the SYAC programme's aim to reopen DSA and develop economic activity, the role of borrowing as a cashflow mechanism, and the potential consequences of rescinding the decision, including significant unfunded future liabilities. The report also outlined the complexities of the Superior Lease, including break clauses related to passenger numbers and planning decisions, and the ongoing procurement process for the airport's operation.
The report presented two options for the Council: to approve the motion, thereby rescinding the borrowing decision and potentially ceasing the programme, or to not approve the motion, allowing the programme to continue under the existing approvals and financial structure. The report highlighted that both options involved material risks, with different types, timings, and reversibility.
The report also included detailed appendices covering the DSA reopening process timeline, a summary of reopening progress, and information on the programme's governance, regulatory activities, capital expenditure plans, and marketing efforts. It noted significant public support for the reopening of DSA, with a survey indicating 92% support.
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