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There are growing questions over the cost incurred in the failed attempt to sell Gloucestershire Airport as council chiefs aim to cut operating losses while supporting the site’s aviation businesses, writes Carmelo Garcia.
It was confirmed last week that plans to sell the 375-acre site in Staverton, which is jointly owned by Cheltenham Borough Council and Gloucester City Council, had fallen through.
It took more than eight months to arrive at this point but council leaders at both authorities say their main priority now is ensuring the airport can continue to operate.
Horizon Aero Group, the preferred bidder, was unable to raise the capital required to complete the proposed purchase of the site, despite being granted additional time to do so.
City Council leader Jeremy Hilton (LD, Kingsholm and Wotton) said maintaining operational continuity at the airport is the council’s priority while the next steps are carefully considered.
The council’s first and overriding concern is to support the many aviation-related businesses based at the airfield.
These businesses play an important role in the local economy, the council said and civic chiefs are committed to maintaining open dialogue, providing reassurance and supporting stability on the site during this period.
Alongside this, the City Council recognises the need to address the airport’s current operating position.
Operating losses have continued to increase and the council says work is already underway to explore ways to reduce these losses and improve the commercial viability of the airport, while keeping it functioning as an active aviation site.
But questions and concerns among the opposition are growing.
Labour group leader Terry Pullen (Moreland) asked why it took so long to discover why the buyer was unable to raise the capital needed for the deal.
He also wants to know why the due diligence was not carried out effectively in the first place to avoid this outcome.
“There are also big questions to be asked about how much the council has spent and wasted on consultants, agents and legal fees,” he said.
“The council is keeping very quiet about that. The airport is making a significant annual loss and council tax payers continue to bail it out.
“However, we now hear that the council is making plans to reduce running costs and increase income, although there are no clear proposals about how this will happen.
“This is all very well, but it’s a bit late in the day for that. Surely the council should have taken these steps years ago and avoided the financial crisis the airport is now in.”
He said both councils now need a serious re-think about the future of the airport site. It would make sense to involve all other councils in a strategic review given the imminent local government reorganisation in the county, Cllr Pullen added.
He said this would allow them to consider how the airport site can be best used to benefit the wider Gloucestershire economy.
Conservative group leader Stephanie Chambers (C, Quedgeley Fieldcourt) said she will be calling for the full timeline and total cost of the failed sale process, which she believes to be in excess of £200,000.
“It was obvious to many that the negotiations were heading towards collapse, yet the Conservative group and residents were repeatedly shut down and told to stop asking questions,” she said.
“The public should not be asked to carry that risk without answers.
“We also have to remember that people’s livelihoods rely on the airport, including staff, operators, tenants and the many aviation related businesses on site.
“The airport includes operational facilities and business parks that support jobs and the wider local economy, so the priority must be stability and confidence while decisions are made.
“I sincerely hope the Lib Dem leadership, alongside the airport board and management, can pull together to restore commercial viability while they look at all options in the best interests of residents and businesses across Gloucester and Cheltenham.”
Meanwhile Community Independent group leader Alastair Chambers (Matson, Robinswood and White City) said the whole thing was a “complete and utter waste of time and taxpayers’ money”.
He said he raised concerns about the preferred bidder from the outset.
“This entire process has been nothing short of a joke and a shambles from start to finish—a failure of due diligence, a failure of leadership, and a failure of accountability,” he said.
“The public and the councillors deserve not only answers, they deserve accountability.”
The councils are exploring a number of potential options for the airport. And they say there is not expected to be any immediate impact on the day-to-day operation of the airport or on businesses currently operating from the site while this work progresses.
But before any decision is made careful consideration and time to assess the most appropriate way forward is needed to ensure any future direction is realistic, deliverable and in the best interests of the city and wider area.
Cllr Hilton said: “Our focus is on keeping Gloucestershire Airport operating and supporting the aviation businesses that depend on it. I want to be clear that the proposed sale did not proceed because Horizon Aero Group was unable to secure the required funding and not because of any change in our position.
“We are not starting from scratch. Work is already underway to look at how the airport’s financial position can be improved and how operating losses can be reduced.
“We will take the time needed to properly consider the best way forward, remain calm and measured in our approach, and keep all realistic options under review to achieve the best possible outcome.”
Gloucester City Council say they will continue to work closely with Cheltenham Borough Council as joint owner and will provide further updates as this work develops.
By Carmelo Garcia, local democracy reporter for Gloucestershire. carmelo.garcia@reachplc.com