Funding row breaks out over Doncaster Sheffield Airport

A consortium of private investors has written to the Prime Minister alleging that Doncaster Council has ‘delayed, suppressed and frustrated’ its proposal for private funding for the airport, a claim the council strongly refutes.

In a two-page letter sent to Keir Starmer and chancellor Rachel Reeves, the consortium said the council was “hindering re-opening timelines, job creation, and economic growth the region and nation so desperately need”.

The group of global investors is led by Spain-based Labyrinth International Investments, whose chief executive Chris Jordan signed the letter, in partnership with Monaco-based Castlepines Global Equity.

Jordan wrote: “The level of proposed public borrowing, financial burden, risk and lack of transparency of available private investment now creates an untenable and inappropriate decision-making process due to take place at the meeting proposed to approve the Gainshare Funding on 27th November.”

The consortium’s offer included around £500m of investment, including £100m ‘upfront’ to acquire Fly Doncaster, the council’s arms-length company established to operate the airport, with 10% of the equity to be re-gifted back to the council.

The proposal also covers two infrastructure pressures affecting the airport’s reopening: a lack of power and grid capacity, and insufficient rail connectivity.

The consortium said each issue would require around £200m of capital investment, which it has offered to fund.

It was previously suggested that £57m of additional council borrowing was the only option available to progress the airport’s reopening, with no reference to the private investment offer.

The £160m in gainshare funding from the South Yorkshire Mayoral Combined Authority is scheduled as approximately £6m per year over 25 years rather than a single upfront allocation.

Doncaster Council has said that additional borrowing is required because more than £6m is needed in the initial years of the programme.

Councillors are due to decide on the borrowing proposal at a meeting on 27 November 2025.

In his letter to the Prime Minister, Jordan stated: “We are concerned that the authorities have not given full sightedness of the formal private investor offer to both the public and to all counsellors being asked to make the biggest and longest lasting impact decision Doncaster has ever taken.

“The public desperately wants DSA to reopen, but not at any cost to future generations when private investment is ready to be agreed and is being suppressed.”

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Responding, a City of Doncaster Council spokesperson said: “The council refutes allegations attributed to Mr. Freeman and his associates. We do not conduct negotiations in the public domain.

“First and foremost, we have been engaged with Mr. Freeman continually since winter 2022.

“He has brought several proposals to the council, none of which have had substantial proof of funds attached to them, including the current proposal.

“Therefore, they have not progressed. We are always interested in genuine and substantiated offers and will, as expected, apply proper due diligence to them to ensure they are robust.

“There are other interested parties who have similarly made contact with us and due to confidentiality, we cannot comment further.

“Irrespective of speculative approaches, the council must follow proper due process in engaging with the market.

“It is for that reason, we went out initially for a market test. The procurement process was open, fair and transparent, unfortunately there was no private sector funding forthcoming during this process.

“At this point, it should be noted that Mr. Freeman and his associates were free to submit a bid. They did not.

“We have repeatedly said that we and our funding partners want to seek financial investment as soon as possible, however we recognise that the procurement exercise demonstrated that the public sector needs to be, as is often the case, the investor of first resort.

“We will, therefore, be going out to the market again when the time is right and the time is not now because our focus is on securing a certificated and licenced operating airport. Without these essentials, then there is no airport.

“We are engaged with our technical and financial advisors, and they confirm that now is not the time to go out to the market.

“Not only does this take time, but would be an unhelpful distraction in achieving the key elements needed to fully reopen the airport as soon as possible.

“The decision of when to go out to the market will be one for the council and FlyDoncaster to make in consultation with senior politicians to ensure we get the best return for our taxpayers.”