Referral of a proposed subsidy to FlyDoncaster Limited by City of Doncaster Council
Source: gov.uk (2025-01-22)

The Subsidy Advice Unit (SAU) has published its report providing advice to City of Doncaster Council concerning its proposed subsidy to FlyDoncaster Limited.

Administrative timetable

Final report

22 January 2025: The SAU has published its report providing advice to City of Doncaster Council concerning the proposed subsidy to FlyDoncaster Limited. The report sets out the SAU’s evaluation of City of Doncaster Council’s Assessment of Compliance of the proposed subsidy with the requirements set out in the Subsidy Control Act 2022.
- Final report (https://www.gov.uk/government/publications/report-on-the-proposed-subsidy-to-flydoncaster-limited-by-city-of-doncaster-council) (22.1.25)
Request from City of Doncaster Council

6 December 2024: The SAU has accepted a request for a report from City of Doncaster Council concerning its proposed subsidy to FlyDoncaster Limited. This request relates to a Subsidy of Particular Interest.

The SAU will prepare a report, which will provide an evaluation of the council’s assessment of whether the scheme complies with the subsidy control requirements (Assessment of Compliance). The SAU will complete its report within 30 working days.

Information about the scheme provided by City of Doncaster Council

The council wishes to improve the well-being of the people of Doncaster and South Yorkshire through reopening Doncaster Sheffield Airport, to act as a driver for economic growth and development, raising employment and productivity across the City. Following undertaking several activities including the development of the Business Cases (Strategic and Full), Financial Viability Assessment and competitive procurement process, the council has identified that a subsidy is required, which has been minimised by the actions taken.

The council is proposing to provide loans over 10 years of £105.2m to FlyDoncaster Limited, in order to reopen Doncaster Sheffield Airport, re-commence aviation activities, and enable delivery of the South Yorkshire Airport City vision. Repayment of the loan will be as cash flow allows, at subsidised interest rates below commercial rates. The value of this is estimated as a subsidy worth up to £89.7 million although this will depend on the repayment period. FlyDoncaster Limited is a new company incorporated for airport operator activities, and is 100% owned by the council.

Doncaster Sheffield Airport is a valuable infrastructure asset, which made a significant contribution to Doncaster’s economy and acted as a catalyst for new investment in the city prior to its closure in November 2022. It is the anchor development of the South Yorkshire Airport City programme that aims to deliver a 1,600-acre mixed-use regeneration scheme with a full complement of ancillary uses, including residential, retail, community and leisure uses, alongside a fully operational airport and aviation-focused advanced manufacturing cluster.

The council’s policy objective of the subsidy is focused on addressing equity objectives, namely the council intends the subsidy to provide high quality employment opportunities with commensurate wages, as well as providing direct access to international travel and ensuring the wider sub-region is integrated and connected to international destinations and markets. Doncaster Sheffield Airport can have a positive impact on the quality of life and resulting well-being of local communities and businesses. Furthermore over 30 years, it is estimated that almost 4,600 gross direct jobs will be supported around 5,900 gross indirect jobs and around 4,400 catalytic jobs in surrounding aviation-related development and generating net additional benefits in the range £0.6 billion to £2.2 billion.

Information for third parties

If you wish to comment on matters relevant to the SAU’s evaluation of the Assessment of Compliance concerning the council’s proposed subsidy to FlyDoncaster Limited, please send your comments before 5pm on the date stipulated in the timetable above. For guidance on representations relevant to the Assessment of Compliance, see the section on reporting period and transparency in the Operation of the subsidy control functions of the Subsidy Advice Unit. (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit)

Please also provide a contact address and explain in what capacity you are making the submission (for example, as an individual or a representative of a business or organisation).

Notes to third parties wishing to make a submission

The SAU will only take your submission into account if it can be shared with the council. The SAU will send a copy of your submission to the council together with its report. This is to allow the public authority to take account of the submission in its decision as to whether to make or modify the scheme or its assessment. We therefore ask that you provide express consent for your full and unredacted submission to be shared. We also encourage you to share your submission directly with the council using the email address provided above.

The SAU may use the information you provide in its published report. Therefore, you should indicate in your submission whether any specified parts of it are commercially confidential. If the SAU wishes to refer in its published report to material identified as confidential, it will contact you in advance.

For further details on confidentiality of third party submissions, see identifying confidential information in the Operation of the subsidy control functions of the Subsidy Advice Unit. (https://www.gov.uk/government/publications/guidance-on-the-operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit/operation-of-the-subsidy-control-functions-of-the-subsidy-advice-unit)

Contacts
- CMA press team: xx-xxxx-xxxx or xxx@xxx.xx (mailto:xxx@xxx.xx)