Time is running out for an agreement to be reached over the lease for Doncaster Sheffield Airport (DSA), as local faith in the project wanes with a new delay caused by a lease disagreement between the airport landowner and City of Doncaster Council.
Lease Disagreement
Public confidence in the reopening of Doncaster Sheffield Airport (DSA) is wavering as the project faces delay following disagreements associated with the 125-year lease. South Yorkshire Mayoral Combined Authority (SYMCA) has demanded a renegotiation of the terms of the lease as a result of a ‘turnover rent’ clause, which allows Peel to receive 20 per cent of annual airport income above annual base rent payments.
Originally, Peel closed DSA due to a lack of financial viability in November 2022, leaving one of the largest city regions in the UK without an aviation presence. Since then, the Mayors of South Yorkshire and Doncaster have worked along with local authority partners and central government to explore the opportunity of returning aviation to the region by reopening DSA with a viable future, having agreed on a budget of around £160m in September 2025.
The devolution funding allocated for the project in 2025 will only be released by the office of South Yorkshire Mayor Oliver Coppard if the current lease agreement is altered. The project is not without risk to the taxpayer given the sums of public funding involved, meaning that SYMCA will likely proceed with caution.
Protracted Renegotiations
The potential for the sustainable aviation hub to take off at DSA and transform South Yorkshire’s economy has made the project highly popular amongst the public. While there is a lot of support for the airport, and local leaders have been credited for progressing the project to the current point, the failure so far to come to an agreement has caused some frustration. Campaigners have continued to highlight that jobs, housing and infrastructure are much needed in the region, and the reopening of DSA could act as the catalyst for positive change in surrounding communities.
Protracted renegotiations between City of Doncaster Council and Doncaster Sheffield Airport landowner and property giant Peel Group are set to take place at the request of South Yorkshire Mayoral Combined Authority (SYMCA), to solve the disagreement. With a SYMCA board meeting taking place this week, crunch time for the project is approaching rapidly, and a deal needs to be reached that could be beneficial for both the landowner and the council in order for the project to move forward.
What do you think of the project and the lease disagreement? Let us know in the comments.
