The Cabinet of Doncaster Council is scheduled to meet on Wednesday, 28 October 2026, to discuss updated arrangements for the South Yorkshire Airport City (SYAC) programme and the reopening of Doncaster Sheffield Airport. The meeting will also include time for public questions and statements.

South Yorkshire Airport City (SYAC) and Doncaster Sheffield Airport

A significant item on the agenda concerns the proposed updated arrangements for the South Yorkshire Airport City (SYAC) programme and the reopening of Doncaster Sheffield Airport through FlyDoncaster Ltd (FDL). These updated arrangements involve the South Yorkshire Mayoral Combined Authority (SYMCA) proposing to acquire the freehold of the airport and associated strategic development land. The SYMCA would then assume responsibility for future funding, financing, and associated risks.

The report pack indicates that these proposed arrangements aim to achieve several outcomes for Doncaster and South Yorkshire. These include the reopening of Doncaster Sheffield Airport, public sector ownership of strategically important land, and an increase in business rates growth ringfenced for airport and Gateway East investment. The Council would retain a strategic role through equal economic rights in FlyDoncaster Ltd and a 30% voting shareholding, with associated governance protections. The arrangements are also expected to reduce the Council's ongoing operational and financial exposure by transferring future airport funding, financing, and associated risks to SYMCA.

The report outlines that the Council has previously approved participation in the SYAC programme and the reopening of the airport. Discussions have continued between the Council, SYMCA, and the landowner, Peel L&P Investments (North) Limited, leading to this revised delivery model. The decision is considered urgent due to ongoing commercial negotiations.

The recommendations include noting matters to be considered by the SYMCA Board regarding the acquisition of the airport freehold and land interests, and the future operating arrangements for Doncaster Sheffield Airport. Authority is also sought to delegate approvals for changes to the shareholding and governance arrangements of FlyDoncaster Ltd, the transfer of the Council's leasehold interests to FlyDoncaster Ltd, and the transfer of assets, contracts, and intellectual property. The commencement of employee consultation and any necessary TUPE processes are also recommended for approval. Furthermore, authority is sought to approve the Council entering into an Agreement with SYMCA for funding and transition arrangements, and to approve the principle of legal and commercial protections to safeguard Doncaster's long-term interests.

The report highlights that the proposed arrangements continue the objective of reopening Doncaster Sheffield Airport and supporting the delivery of South Yorkshire Airport City. It is anticipated that these arrangements will provide greater long-term certainty over the ownership of the airport site and surrounding strategic development land, improve opportunities for future development at Gateway East and DSA04, and enable future airport operations to be supported on a South Yorkshire-wide basis. The arrangements are also expected to reduce direct operational and financial risks to Doncaster taxpayers while retaining economic benefits.

The report details the proposed governance and operating arrangements, including the issuance of new 'A' and 'B' class shares in FDL, with the Council having 50% of the economic rights and 30% of the voting rights, and SYMCA holding the remaining 50% economic rights and 70% voting rights. A Shareholders Agreement will govern the operation of FDL. The report also outlines phased transition and implementation arrangements, including a transition and mobilisation phase and a phase for transfer to the long-term operating model.

The report addresses the implications for Gateway East and retained business rates, noting that under the revised arrangements, SYMCA's 25% share of business rates retained will be ringfenced towards airport and Gateway East related investment. This means all business rates growth generated within the area will be directed towards this investment, providing greater long-term funding capacity.

Options considered include approving the proposed arrangements, retaining the existing Council-led funding model, ceasing participation in the airport reopening programme, and the Council acquiring the freehold directly. The report recommends approving the proposed arrangements, as it supports the continued delivery of SYAC and the reopening of Doncaster Sheffield Airport while transferring ownership, future funding, financing, and associated risks to SYMCA.

The report also details legal, financial, and human resources implications. Legally, the Council has powers under the Localism Act 2011 and the Local Government Act 1972. The proposed arrangements involve the assignment of the Council's lease to FlyDoncaster Limited, a potential transfer of shareholding in FlyDoncaster Limited to SYMCA, and the Council entering into an Agreement with SYMCA. Financially, the Council intends to enter into an Agreement with SYMCA to support the transitional period, and upon assignment of the lease, rent and other site-related costs will become the responsibility of FlyDoncaster Ltd. For human resources, it is anticipated that approximately 53 employees will transfer to FlyDoncaster Ltd under TUPE regulations, with full and meaningful consultation with employees being a responsibility of the Council.

The report also identifies risks associated with the programme, including completion risk for the complex transaction, timing of transfer activities, and TUPE and workforce transition risks. These are to be mitigated through due diligence, phased implementation, legal protections, and joint governance arrangements. Consultation has been undertaken with senior officers, the Mayor, Cabinet Members, Political Group Leaders, Elected Members, Doncaster's MPs, SYMCA, and professional advisers.

Public Questions and Statements

A period of up to 20 minutes is allocated for members of the public and Elected Members to ask questions or make statements to Mayor Ros Jones. These questions or statements must relate specifically to an item of business on the agenda and be limited to a maximum of 100 words. Notice of questions or statements must be given in writing or by email to the Governance Team by 5:00 p.m. on Friday, 23 October 2026.