Town halls’ boost from £71m airport windfall
GREATER Manchester’s ten local authorities will be using a record £71m windfall from their stake in the airport to help balance their books this year.
The region’s town halls have a two-thirds share in the Manchester Airport Group and in recent years have seen increasingly lucrative dividends from the arrangement.
The group – which owns Manchester, Stansted and East Midlands airports – has reported record profits in its final year results, on the back of a 6.5 per cent increase in passengers.
Manchester council will reap the largest share of the dividend to town halls, taking away £39.3m.
Town hall leader Sir Richard Leese said the money had already been factored in to the council’s finances as part of this year’s budget-setting process.
“The continuing success of Manchester Airports Group is once again a major plus for the city and its people – both supporting the role of the city as an international gateway and in generating income for the council,” he said.
“This money will be used in full to support council services, in particular those for the most vulnerable children and adults, helping to offset other financial pressures.”
Other councils across the region – most of whom are also suffering major pressures on their social services departments – will share the remaining £32.1m between them, again helping offset the impact of continued squeezed budgets.
The rest of the airport’s dividend – £39.3m – goes to Australian investment fund IFM Investors.
Revenue rose nearly 10pc across the group over the past 12 months, meaning its total dividend pay-out is almost £17m higher than last year.
Commenting on the latest results Charlie Cornish, CEO of MAG, said: “The world class connectivity that our airports are delivering will ensure that MAG continues to play a leading role in powering the UK economy.
“Manchester and London Stansted are the two largest UK airports with significant runway capacity and our investment will allow us to meet continued demand for aviation growth both in and out of the UK.
“The government’s support for airports looking to make the best use of existing capacity provides a clear framework for growth, and it is critical that it now matches its backing for Heathrow expansion with specific and practical proposals to improve rail access and maximise the potential of airports like Manchester, London Stansted and East Midlands.”