Airport stake sale will support struggling city council’s services bill
Liverpool City Council has reaped a massive return on its investment in Liverpool John Lennon Airport (LJLA), banking a £19m payday after selling a 10% stake in the facility.
And council leaders say the windfall will help to meet spiralling social service costs as the city faces a funding shortfall.
The council bought a 20% stake in LJLA for £2m in 2016.
Two days ago it sold a 10% share to investment company Ancala Partners for £19m.
Ancala announced on Tuesday (September 17) it had bought a 45% stake in LJLA, comprising a 35% share belonging to Peel Group, and the council’s 10% shareholding.
The deal means the council still retains a 10% share in LJLA, and Peel 45%, respectively.
The sale proceeds will now go towards shoring up children’s care costs faced by the city.
This week a cross party call went out from the council to the Government for urgent action from the Treasury, with the authority facing an estimated £57.6m gap in its finances for next year.
Councillors have warned that the city cannot meet the demand for services from the council tax and business rates it collects, amid claims that its reserves have “now been exhausted, leaving the council with no financial options left”.
Liverpool Mayor Joe Anderson said the sale of part of its stake in LJLA has vindicated the decision to buy a 20% shareholding in the airport three years ago. He said: “We got a lot of criticism when we invested £2m in the airport back in 2016, but to make that kind of profit and retain a 10% stake in the airport – I can’t think of a better deal a council has done.
“That money is in our bank now and we are looking at using it to help with the overspend that we have in children’s services.
“While we can’t use it for revenue services – what we can do is build the facilities that we need to stop kids in care being moved away from Liverpool, we want them to be looked after in our city.
“This is what invest to earn is all about – while we are getting battered by austerity we will do everything we physically can to keep the city going.”
