Liverpool City Council refuses funding call for airport investment

Liverpool City Council this morning (April 22) confirmed that it will not take part in the latest round of investment for Liverpool John Lennon Airport.

At the council’s full cabinet meeting, councillors approved a recommendation not to participate in a funding call to shareholders in the airport company.

As a 10% stakeholder in the company, the authority would have had to provide £700,000 towards the airport’s latest expansion plans.

But the cabinet meeting agreed not to participate in the cash call, saying: “The council values the vital economic role of the airport, but this plan does not align with council priorities at this time.”

By declining to participate, the council’s holding in the airport company will now be diluted from 10% to 5.6%.

Opposition to the funding call emerged earlier this year when, in a full council meeting in January, Green councillor, Anna Key, put forward a motion to remove financial aid to the airport.

The council had declared a climate emergency in 2019.

During the January council meeting, Liverpool climate change and environment select committee chair Cllr Lena Simic said: “Let’s be clear, nobody wants airport expansion.”

The meeting backed a motion to explore the processes for removing the financial support the council provides to Liverpool John Lennon Airport.

And the consensus at a dedicated follow up meeting in February was to decline further financial support, on the grounds of budget constraints, risk, and investment not being in line with council strategy.

In 2015 the council backed the airport by investing £2m for a 20% shareholding, with majority owner Peel taking the remaining 80% for £8m.

The airport’s value subsequently increased, to the extent that, in 2019, the council sold half its 20% stake to infrastructure investor, Ancala, for a huge return worth £10.2m.

Prior to today’s meeting, Peel Group and Ancala Partners owned 45% each.

The airport previously launched investment plans worth £100m. The latest call to shareholders was to fund investment in two new projects – the creation of a solar farm, and the acquisition and upgrade of a fuel farm operated by oil giant Shell.

The airport currently contributes £250m to the Liverpool economy each year, but LJLA claims this could rise to £625m if the expansion goes ahead.

Liverpool John Lennon Airport declined to comment.