City of Doncaster Council’s plan to reopen Doncaster Sheffield Airport has drawn scrutiny from auditors over financial risks tied to the £105 million investment. A report from Grant Thornton, the council’s external auditor, raised concerns about the scale of public funding allocated to the project and its financial viability.
The council has established a publicly owned company, FlyDoncaster, to manage the reopening after failing to secure a private operator. The proposed funding, drawn from South Yorkshire devolution money, includes low-interest loans amounting to an effective subsidy of nearly £90 million.
In November, Grant Thornton sent a letter to the council’s chief executive warning of increased financial exposure, which has risen from an initial estimate of £16 million to over £100 million. The auditors described this escalation as a “major concern” and cautioned against the risk of “escalation of commitment” should the project fail to meet financial expectations.
A separate report revealed that the estimated cost of lease payments on the airport site has jumped from £14.8 million to £56.6 million. The audit firm advised the council to conduct further financial assessments and establish contingency plans if risks exceed acceptable levels.
The UK government has since expressed support for the airport’s reopening, though it has not committed national funding. Meanwhile, Munich Airport International has been brought in to provide operational and management services.
South Yorkshire Mayor Oliver Coppard has delayed a final decision on the investment until the summer, citing the need for independent financial assurance. Internal reports have flagged risks to public funds, prompting further review before committing devolution money to the project.
