Decision details

The Cabinet considered strategic investment proposals of the Manchester Airport group companies to provide the airline capacity and standard of facilities required to secure future business plan growth and the longer term sustainability of the business and agreed that:-

·           the proposals set out in the report, and in particular the recommendations for financial support to the Manchester Airport and Stansted Airport transformation project through the form of further shareholder loans be noted;

·           that the transformation project outlined is fully aligned to the strategic economic and regeneration objectives of Greater Manchester be noted;

·           the Chief Executive be authorised, in consultation with the Borough Treasurer, Borough Solicitor and Leader of the Council and Cabinet Member for Policy, Finance and Devolution to approve the funding package including the Council’s shareholder loan;

·           the Chief Executive, Borough Treasurer and Head of Legal & Democratic Services be authorised to negotiate and finalise the detailed arrangements in respect of the Council’s shareholder loan, and to progress the financial and legal work associated with it; and

·           the increase in capital expenditure supported by prudential borrowing be approved.

Specifically in relation to the exempt portion of the report, the Cabinet additionally agreed:-

·           the extensive due diligence that has been completed and the conclusions of that exercise as set out in the section 4 of the exempt report be noted;

·           the increase in capital expenditure within the range set out in the report (depending on the amount of the funding package) supported by prudential borrowing be approved;

·           the proposals for the shareholder loan, subject to approval of the capital expenditure supported by prudential borrowing, be approved;

·           the Borough Treasurer be authorised to determine the detailed accounting arrangements for the loan, including the classification between revenue and capital; and

·           the Head of Legal & Democratic Services be authorised to enter into any necessary agreements or documents to give effect to the above resolutions.

(Note: this report contained exempt information that was circulated to cabinet members only and the public were excluded from the meeting during consideration of the item).

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