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Tees Valley Mayor Ben Houchen has announced that he has agreed terms with Peel Airports to bring Durham Tees Valley Airport (DTVA) back into public ownership.
The Mayor has presented a proposal to acquire Peel’s 89 per cent shareholding in the airport, as well as 819 acres of land, for £40 million. As part of the agreement, a parcel of land with outline planning permission for 350 homes will also be purchased. The Mayor has committed to stopping the planned housing development.
Houchen proposes to use just over six per cent of the £513 million Tees Valley Combined Authority financial backing to bring the airport back into public ownership – meaning there will be zero impact on people’s council tax bills, zero impact on public services and zero impact on businesses.
Houchen said: “This is a deal that will secure our airport’s long-term future, and delivers on the number one election pledge I made to the people of the Tees Valley. Using the money devolved to our area from central government, I am proposing to use just over six per cent of that – £35 million – to acquire Peel’s shareholding in our airport and 819 acres of land.
“We have over £513 million from central government to invest in local priorities that we determine. For the people of the Tees Valley, having a thriving local airport is a priority. The people of the Tees Valley will not have to pay a penny extra to finance this acquisition. Our valued public services will not be affected by this deal, our councils will be completely insulated and protected, and our other priorities will still be delivered on.
“Taking back control of our airport presents a once in a generation opportunity for the Tees Valley to find its voice again. As we look to a positive future outside the European Union, we won’t just be competing with Newcastle, Leeds or Birmingham – our success depends on our ability to work, trade and collaborate with old friends and new allies around the world. That means we have to be as accessible, visible, competitive and pro-active as possible, and it starts with securing the long-term future of our airport.”
If approved by cabinet, the agreement will transfer ownership of DTVA to the Tees Valley Combined Authority early in 2019.
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