News: Public funding approved for South Yorkshire Airport City project

South Yorkshire’s Mayor Oliver Coppard and Council Leaders have taken a historic decision to reopen Doncaster Sheffield Airport, approving a £160m (£159.52m) funding package.

The decision was made at a meeting of the South Yorkshire Mayoral Combined Authority Board (SYMCA). All five board members voted unanimously in favour of the funding, including Rotherham Council leader, Chris Read, paving the way for the airport’s reopening.

Doncaster Sheffield Airport closed in November 2022, leaving South Yorkshire one of the largest UK city regions without an international aviation presence.

Since it closed, the Mayors of South Yorkshire and Doncaster, along with local authority partners and central government have worked at pace to explore the opportunity to return aviation to the region through a reopened airport with a viable future.

South Yorkshire’s Mayor Oliver Coppard, said: “We’re reopening DSA. Today, we’ve made a historic decision; to invest in the plans to reopen Doncaster Sheffield Airport, and to create a sustainable aviation and advanced manufacturing hub at Gateway East.

“I’ve always said I wanted to reopen DSA, but we needed to know exactly what the plan looked like. That’s why we’ve taken the time and done the work. No plan of this size or scale is ever easy, or without risks, but today we’ve taken a bold step forward, backed by data, expertise, and a shared vision for the type of South Yorkshire we want to build, because DSA is a unique opportunity.

“The plan we have backed today is about more than holiday flights or passenger numbers, it’s a long-term commitment to drive jobs, growth and opportunities in sustainable aviation, advanced manufacturing, freight, and even the defence sector, here in South Yorkshire.”

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The majority of the funding required, £121.62m, has been earmarked from Gainshare funding allocated to City of Doncaster Council’s Place Investment Plan. Gainshare funding refers to the money committed to South Yorkshire through the Devolution Deal agreed by the MCA, South Yorkshire local authorities and government.

Significant passenger operations are not likely to commence until summer 2028 but with potential for limited passenger activity and cargo from winter 2027.

On voting to approve the use of funding, Cllr. Chris Read, leader of Rotherham Council, said: "Clearly this is a huge asset for the South Yorkshire economy, with enormous potential for driving forward jobs and opportunities for people in our region. And that benefit will be felt far beyond Doncaster. So am satisfied on that basis, and on the basis of the conversations that we've had over recent weeks and months that this is an appropriate use of public money and a wise thing for us to do to take forward the South Yorkshire economy."

On the politics of the decision, Read added: "We live in a time where there is minute by minute commentary on the decisions that we take and the way that we hold ourselves in public office. and Ros [Mayor of City of Doncaster Council Ros Jones] has shown exemplarary leadership through that period of time.

"Because none of this is easy. It was not in awy way inevitable that we would be here today making this decision. We can only do that because of the leadership that Ros and Doncaster Council have provided.

"Because of the way that the South Yorkshire Mayor has been able to look at all the feasible ways that this could proceed, and to weight those risks. And because of the way the officers at the MCA have then taken their responsibility so seriously to weigh those risks, to look at the pros and cons, to work with us as politicians and to look at credible, serious ways that we can facilitate economic growth in South Yorkshire."

Carrie Sudbury, Chief Executive, Barnsley & Rotherham Chamber said: “The decision to re-open Doncaster airport today is a milestone moment for South Yorkshire and we welcome the decision reached today.

"Today marks the end of an extensive consultation period, which clearly laid out the strong business case for re-opening. I hope that with funding now secured and consultations completed, this marks the beginning of an exciting new phase which will ultimately see flights return to the skies in South Yorkshire.

"My hope is that the re-opening of Doncaster airport will act as a catalyst towards boosting growth across the region, helping to connect the truly unique and innovative work being delivered throughout South Yorkshire, as well as helping our business community to explore new opportunities within international markets. At the same time, the decision is likely to create many new jobs within the regional economy as well as helping to drive inward investment into South Yorkshire."

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News: Historic Rotherham football ground is now home to famous women's team

Millmoor football stadium in Rotherham has new tenants for this season - the Doncaster Rovers Belles.

The home of Rotherham United until 2008 was abandoned but has been used for charity games and youth football in recent years. It will welcome one of English women's football's most famous and successful clubs for the first "home" fixture on Sunday August 24.

Doncaster Belles were one of the founding members of the inaugural National Division in 1991, which they won twice, along with the FA Cup six times. Also a founding member of the Women's Super League (WSL) in 2011, the team has dropped down the leagues at the same time as women's professional football has grown.

The team, now part of Club Doncaster, the same organisation that owns the men's team, plays in Division One North - Tier 4 in the women's football pyramid.

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Chris Wood, CEO of Doncaster Rovers Belles, said: "Our focus is simple - build a sustainable club that wins matches and makes Doncaster proud.

“In order to achieve those goals we need a stable home for the next two seasons, while we complete the upgrades to our long-term home at the Eco-Power Stadium main 3G pitch.

“Millmoor gives us that stability, with excellent facilities and strong transport links for welcoming in supporters, plus a rich history. Even as we work towards a permanent home, we cannot afford to stand still and I believe having the base at Millmoor will allow us to progress.

“It’s not a decision we’ve taken lightly. As always, we worked closely with supporters in making this choice. Understandably there were some concerns about playing outside Doncaster but the feedback was clear - given the alternatives, Millmoor was the best solution.

“Denaby served us well but lacks floodlights, Retford’s pitch was superb but travel was an issue for supporters and Thorne has infrastructure challenges. We explored the possibility of using the athletics stadium next to the Eco-Power Stadium but the cost of renovating the pitch to bring it up to standard would be significant and ultimately it is not our property.

“Millmoor stands out as the only venue that meets our needs and supports our ambition at this level.

“This move is temporary but allows us to keep growing our attendances, which are already among the highest in tier four. And it will allow us to give the players and fans the platform they deserve until we do return home.”

Rotherham United fell into administration for the second time in 2008 having previously been owned by the Booth family, owners of Millmoor and the large scrap business that surrounds it.

Local businessman Tony Stewart of ASD brought the club out of administration via a Creditors Voluntary Agreement but then came the decision to play home games at the now demolished Don Valley Stadium in Sheffield, after working hard to get a deal to carry on playing at Millmoor, the club's home for over 100 years.

The club was charged with returning to play home games in its home town within four seasons by the Football League and the £20m AESSEAL New York Stadium, on the edge of Rotherham town centre and in view of Millmoor, hosted its first Millers game in 2012.

Tier 5 Rotherham United Women currently play home games at Roundwood Sports Complex, the location for the men's training facilities.

Doncaster Rovers Belles website

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News: £750m PFI waste contract to be taken over

Renewi plc is getting rid of the loss-making contract at the 220,000 sq ft "BDR" waste facility in Rotherham.

It comes as Biffa, a leader in UK sustainable waste management, entered into an agreement to acquire Renewi’s municipal business in the UK. An alternative could have seen the facility handed back to the council.

The waste treatment facility at Brookfield's Park, which became fully operational in 2015, takes around 250,000 tonnes a year and creates a material suitable for recovery and recycling and includes Mechanical Biological Treatment (MBT) and Anaerobic Digestion (AD) facilities. More than 97% of the waste received is diverted from landfill.

Barnsley, Doncaster and Rotherham (BDR) Councils secured £77m through the Private Finance Initiative (PFI) for the scheme and the operators signed a 25 year contract worth in excess of £750m with the councils for the treatment of black bag waste.

Renewi has struggled with its UK municipal waste contracts, which it described as a "cash drag on the group – with a total cash outflow of approximately €28m over the last 24 months."

A strategic review of the business began last year with bosses looking to withdraw completely from the UK market. The company was formed when Shanks plc completed a merger with Dutch waste service provider and raw material and energy supplier, Van Gansewinkel Groep B.V., in 2017.

The deal covers five contracts and will have a net cost of €57m to Renewi but will free them from "unpredictable UK Municipal liabilities" and "Onerous Contract Provisions (OCPs)."

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In a statement, Renewi said: "The contracts were entered into more than ten years ago, by a Renewi predecessor; they are break-even or structurally loss-making and, in the absence of a legislative shift or significant changes in market conditions, can be neither prematurely terminated nor renegotiated by Renewi."

Michael Topham, CEO, Biffa, said: “The addition of these five contracts to our existing contracts in West Sussex, Leicester and Somerset further establishes our reputation as a trusted provider of complex, long-term waste treatment contracts to local governments.

“Our combined expertise will position us well for the future as we seek to help local governments deliver their net zero targets. We look forward to welcoming the Renewi UK team to Biffa and to working with our new customers in due course."

As part of the deal, around 550 Renewi staff will now become part of the Biffa group.

The five contracts are with the Barnsley, Doncaster and Rotherham (BDR) Waste Partnership, Cumbria County Council, Wakefield Council, East London Waste Authority and Argyle & Bute Council.

Renewi website
Biffa website

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News: All South Yorkshire councils to cover Supertram losses

A transport levy paid by the four local authorities in South Yorkshire is set to be used to cover the £6.3m losses of Supertram after Stagecoach’s current contract for operation of the network ends in March.

Opened in 1994, Sheffield's Supertram system cost £240m and now serves major residential and employment sites in Sheffield. A tram-train pilot project brought new vehicles to Rotherham in 2018. The running of Supertram services, infrastructure and finances will be controlled by South Yorkshire Mayoral Combined Authority (SYMCA) through an arms-length company from March 22.

Rothbiz revealed in November that the cost to keep the Supertram network going for another 30 years is now nearly £600m, with only the first £105.95m secured, and that £7m is being set aside from the MCA budgets to support any operating losses. This is £7m each year, reducing over time.

The Mayoral Combined Authority Board is set to receive an update on the proposals, and budgets, when it meets next week with a business plan for Supertram on the agenda.

A 2024/25 operating budget for SYFTL (the arms-length company operating the tram) shows that operating costs are £23.6m per year for the 29km long network of four overlapping routes, served by 25 trams and seven tram-trains. Nearly 60% of costs go towards the wages and salaries of the workforce with almost 20% of the budget paying for the cost of electricity which powers the trams.

Annual income is £17.5m, which mostly comes from ticket revenues and around £1.8m from concessionary subsidies via SYMCA for elderly and disabled passengers and children.

Around 9.5 million people travel on Supertram every year. A long period of track renewal and the COVID pandemic has seen patronage fall from its peak of 15 million passengers per annum in 2010/11. There were 11.5 million passengers in 2019 prior COVID.

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A report to the SYMCA board said: "All these income streams are not enough to cover the tram system’s day-to-day running costs. In 2024/25, the operating deficit is forecast to be around £6.3m. SYMCA will pay an operating subsidy to SYFTL which will allow the company to meet all its financial obligations. SYMCA will also meet any costs necessarily incurred by SYFTL to deliver the asset renewal programme. In its own medium term financial plan, SYMCA has set aside sufficient resources (£5-7m per annum) from the South Yorkshire Transport Levy (paid by each of the four local authorities in proportion to their population) to cover the cost of the operating subsidy."

This year's transport levy is to be discussed at the same meeting. For 2024/25 it is set at £56.65m, raising an additional £1.1m of funding. The 2% increase would mean that Sheffield Council would pay in £23.6m, Doncaster £12.5m, Rotherham £10.6m and Barnsley £9.9m.

The new company's five year strategy sees Supertram go through a recovery phase before an improvement phase and then a growth phase. The plan forecasts that the operating deficit will decline as energy prices begin to stabilise.

The report adds: "One of SYFTL’s primary goals is to decrease its dependence on the public purse. To achieve this, the delivery plan includes several measures that aim to boost ticket sales and other forms of revenue, as well as identifying more cost effective ways of working. This includes new ticket collection machines which will speed up payments for customers. Efficiency in the business will be targeted with a major Timetable Optimisation Study the results of which will determine future service levels and support efficient running and manning of services."

SYMCA has put in place a two-year emergency support package for local transport in the face of a lack of resources and "stop-start" government funding for buses. The authority states that "without sustained Government funding this level of support cannot be maintained beyond financial year 2024/25."

SYMCA website

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News: South Yorkshire celebrates gaining Local Visitor Economy Partnership status

South Yorkshire Mayoral Combined Authority (SYMCA) has welcomed the creation of the South Yorkshire Local Visitor Economy Partnership (LVEP), a collaboration between SYMCA, Sheffield City Council, Doncaster City Council, Rotherham MBC and Barnsley MBC to work together on shared priorities and targets to grow the local visitor economy.

Developed and administered by Visit England, the LVEP programme is one of the key recommendations in the Government's response to the independent de Bois Review of Destination Management Organisations in England.

The LVEP programme, which will be led by Sheffield City Council, will create a national portfolio of strategic and high-performing partnerships working in collaboration locally, regionally and nationally on shared priorities and targets to support and grow the visitor economy.

LVEPs are at tier 2 with Tier 1 set to be a small number of Destination Development Partnerships (DDPs) which will be formed through partnerships of LVEPs.

After submitting an expression of interest, Marketing Sheffield were told that it did not have the geographical coverage required by VisitEngland and the remit wsa widened to South Yorkshire.

With no financial contribution from LAs required at this stage, the LVEP will be delivered as a working partnership thus amplifying the combined efforts of existing teams. SYMCA has indicated a willingness to support with funding and resource.

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South Yorkshire’s Mayor, Oliver Coppard, said: “Here in South Yorkshire we couldn’t be more proud of our world class music, landscapes, festivals and sport. We’re the birthplace of football and the home of snooker, we powered the Industrial Revolution and have England’s oldest national park. We celebrate art, music and literature like nowhere else.

“And now we have a new opportunity to share our beauty, our history, our culture, and our talent with the rest of our world. Our new Local Visitor Economy Partnership, being developed with the support of Visit England, will give visitors from far and wide the chance to explore and experience South Yorkshire in all its glory. I’m excited to see that partnership develop across all of Barnsley, Doncaster, Rotherham and Sheffield.”

Rotherham Council’s Cabinet Member for Social Inclusion, Councillor David Sheppard commented: “The LVEP accreditation will considerably strengthen opportunities to collaborate more effectively with neighbouring boroughs and the MCA and to partner with the private sector to ensure we continue to promote the many reasons to work, live, visit and invest in Rotherham and South Yorkshire as a whole.

“Wentworth Woodhouse, Magna Science Adventure Centre, Gulliver’s Valley and Rother Valley and Thrybergh Country Parks are big drivers of Rotherham’s visitor economy and the accreditation will help celebrate and promote these attractions and the green spaces that are unique to Rotherham’s heritage.”

The draft plan for South Yorkshire aims to diversify and strengthen the events programme, grow the conference market and develop the city breaks offer.

A DDP may be the most appropriate Yorkshire wide model to take forward over time and SYMCA continues to work in partnership with local and combined authorities across Yorkshire on the Yorkshire Tourism Initiative focused on promoting Yorkshire as a visitor destination. This project is being delivered by Barnsley MBC.

Images: Gulliver's

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News: New chief exec for Kingswood Allotts

South Yorkshire-based accountancy specialist Kingswood Allotts is setting its sights on growth and expansion, following the appointment of Tim Baum-Dixon as chief executive.

In a career spanning more than 15 years, experienced chartered accountant and business adviser Tim is the first person to hold the position of Chief Executive, following the acquisition of Allotts by Kingswood LLP last year.

Rothbiz reported on the £2.5m Kingswood Allots deal last year.

In his new role, Tim will be responsible for overseeing the growth and development of the firm within Yorkshire, helping businesses and individuals from across the region to access the firm’s full range of strategic financial and business support, which includes business advice and accountancy services, tax planning, wealth management, and corporate finance advice.

Tim has spent much of his career supporting a diverse range of businesses and individuals across Yorkshire, helping to support a diverse range of businesses spanning innovative start-ups in the tech-sector to some of the region’s best known companies. At the same Tim has also used his expertise and knowledge to support the work of Business Sheffield and the Rotherham Investment & Development Office, where has successfully delivered a range of training courses, designed to help new and would-be entrepreneurs to learn how to manage the finances of their fledgling businesses.

Prior to joining Kingswood Allotts, Tim was quick to spot the positive implications of the government’s drive towards a digital taxation system and successfully launched a dedicated digital accounts division, helping business owners to harness cloud-based accountancy systems.

Tim balances his day-to-day work alongside giving back to his local community. He was successfully elected as councillor for the Anston and Woodsetts ward, representing the area in which he lives.

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Tim Baum-Dixon, chief executive, Kingswood Allotts, said: “Allotts is a brand that has been synonymous with South Yorkshire’s business community for nearly a century. The company enjoys strong links with many business organisations throughout the region, the company has been longstanding patron of Doncaster Chamber, and active supporter of Barnsley & Rotherham Chamber.

Joining at this time presents an exciting opportunity to build on the success the business has enjoyed during its long association with South Yorkshire and beyond, as well as offering a golden opportunity to use the skills and knowledge I’ve developed throughout my own career to lay the foundations for future growth.

It’s an incredibly exciting opportunity, and at a time when the accountancy and broader financial services industry is undergoing one of its most significant periods of change in a generation. Kingswood Allotts is well placed to help businesses and individuals across the region to tap into the knowledge and expertise held within the business and the broader Kingswood group.”

Kingswood Allotts was formed in 2022 following the acquisition of Allotts by the Kingswood LLP. With offices in Doncaster and Rotherham, the business employs 45 people, and working alongside its parent company, Kingswood LLP, the firm provides a comprehensive range of financial support aimed at helping businesses, entrepreneurs and individuals to manage their financial affairs.

Kingswood Allotts website

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News: Manufacturer expanding into Rotherham with new 90,000 sq ft unit

Senior Architectural Systems, the UK’s largest privately owned aluminium fenestration solutions provider, is expanding its manufacturing capacity with the opening of a new facility in Rotherham.

With its head office in Doncaster, Senior offers an extensive range of aluminium architectural façade systems, plus it has its own powder coating facilities, and a fleet of eco delivery vehicles. The rising cost of energy prices has led to a surge in demand efficient aluminium fenestrations systems that comply with recently updated building regulations. Turnover for 2021 was over £40m.

The company has taken a new site on Mangham Road that will provide an additional 90,000 sq ft of usable storage and production space. The move is part of Senior’s wider strategic expansion plan to enhance the thermal-efficiency of its entire product range and to significantly increase production of its low U-value and UK patented PURe® aluminium windows and doors system.

The unit on the Barbot Hall Industrial Estate was previously occupied by Hydro Components UK Ltd that was closed as part of a wider restructuring of its Extruded Solutions operations announced in 2020.

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The new occupier is part of Senior’s wider strategic expansion plan to enhance the thermal-efficiency of its entire product range and to significantly increase production of its low U-value and UK patented PURe aluminium windows and doors system.

It is anticipated that Senior will commence production of its PURe range at the new Rotherham site in early 2023. Once the new site is fully operational, Senior will be able to maximise the space in its existing Denaby HQ to both increase the speed of its in-house powder coating facility and support the ongoing development of its full range of high-performance aluminium windows, doors and curtain wall systems.

Mark Wadsworth, managing director at Senior Architectural Systems, said: "Since launching our patented PURe windows and doors in 2015, we have seen demand continuously grow and so it was always our intention to expand our production capabilities. We have made a number of investments at our main Denaby site, so it was important that we could both complement and replicate this successful and sustainable manufacturing model by finding a site that was not only similar in size, but was also nearby. The new site in Rotherham fits the brief perfectly.

"We are excited to commence production of our PURe system in the new year and look forward to maximising this new capacity to continue to enhance the thermal-performance of our complete range of products.”

The new site in Rotherham will also provide valuable storage space to assist with Senior’s nationwide delivery service and coincides with the company's decision to close its distribution centre in Newport, Wales. All customers in Wales and the South of England will now be served by the two main facilities in South Yorkshire, with Senior’s branch in Livingston continuing to support orders to Scotland and Ireland.

Senior Architectural Systems website

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News: Dead as a dodo? Owners to wind down services at region's airport

Doncaster Sheffield Airport's (DSA's) future looks to be flightless and extinct as the board of directors concludes a review of strategic options for South Yorkshire's airport.

The review follows lengthy deliberations by the Board of DSA which reluctantly concluded that aviation activity on the site may no longer be commercially viable.

A statement said that the review was complete and that "no tangible proposals have been received regarding the ownership of the airport or which address the fundamental lack of financial viability."

South Yorkshire's Mayor Oliver Coppard said that he was "devestated" and "angry" at the findings.

Peel said that the high fixed costs associated with running a safe, regulated airport, together with recent events materially reducing prospective future aviation income streams, mean that a break-even business plan cannot be identified for the foreseeable future.

As a result, DSA will begin winding down the provision of aviation services during the week commencing October 31 2022.

A statement from Peel said: "Since the July 2022 announcement of the Strategic Review, Peel has been actively engaging on a weekly basis with local and national political stakeholders, including proactively engaging with working group meetings, primarily led by officers at Doncaster Council, South Yorkshire Mayoral Combined Authority (SYMCA) and the Department for Transport (DfT). Throughout the consultation process up until today, Peel has also been in close contact with the airlines and other aviation users of the Airport. None of these discussions has delivered any tangible results that have changed the Board of DSA or Peel’s clear view that the Airport is and will remain unviable.

"Peel received a letter from the Mayor of South Yorkshire and Mayor of Doncaster on Thursday, 8 September, stating that they had completed an economic impact study of DSA which identified its economic benefit to the region but provided no solution to its lack of financial viability. Furthermore, they informed Peel that they had been approached by a group interested in purchasing or operating the airport. Peel has yet to receive a response to urgent requests for details on the consortium’s identity, nor have the terms of any proposal or evidence of the consortium’s financial standing or aviation expertise been provided.

"On Friday, 23 September, Peel received a further letter from SYMCA and Doncaster Council, which was supported by the Mayor of South Yorkshire and the Mayor of Doncaster, along with the Leaders of Barnsley and Rotherham, which included a proposal to provide public money to DSA to fund its operating losses until 31 October 2023. The grant was described as providing DSA with free cashflow to sustain losses that may occur over thirteen months while the Peel Group and South Yorkshire partners jointly explore the future potential of DSA and the GatewayEast site. In the absence of any actual proposals to address the lack of viability of DSA, even those at an early stage of development, or any identified potential acquirers or operators of DSA, Peel’s Board has concluded that it cannot responsibly accept public money for this highly uncertain process against the backdrop of an unviable, loss-making operating business."

Robert Hough, Chairman of Peel Airports Group, which includes Doncaster Sheffield Airport, said: “We recognise that this will come as a great disappointment to many. The intractable problem remains the fundamental and insufficient lack of current or prospective revenue streams, together with the airport’s high operating costs. Our employees have always been DSA’s greatest asset, and we are grateful to them all, past and present, for their dedication and diligence over the years. The immediate priority remains to continue engaging closely with them over the next few weeks.

“As such, DSA will now begin a formal process of consulting with team members. We will do everything we can to minimise the impact of these proposals and work closely with local authorities and agencies to support our employees through what we know will be an extremely difficult period. DSA has remained in contact with union representatives on site throughout and we are committed to ensuring they are updated through every step of this next phase.”

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South Yorkshire's Mayor Oliver Coppard said: "I’m devastated by today’s announcement by Peel and angry about the impact it will have on our communities. Most importantly, there are hundreds of people across Doncaster and South Yorkshire who will now be frightened for their future.

"For years, we have been investing public money in and around DSA to support the airport, including providing emergency funding through the pandemic. Since the announcement by Peel that they were entering into a review of DSA, we have done everything we could to constructively and proactively find a path forward. We have identified market interest, brought potential investors to the table, and last week we offered them a deal to project the jobs and livelihoods of DSA staff, and to give Peel the time and space to negotiate with new investors.

"The fact that they chose to turn our offer down simply confirms what many of us suspected: that Peel was never serious about finding an alternative and safeguarding the future of DSA. It is still not too late for them to do the right thing; for them to reconsider their decision for the sake of those employees, businesses and communities directly impacted by this appalling decision. But ultimately if they cannot be stopped from taking this course of action then our focus will shift to supporting our communities through the next few difficult weeks and months.

"The only people who can now intervene to keep DSA operational are national Government. Liz Truss said she would protect the airport. Now is the moment to turn those words into action. We stand ready to work with the Government.

"Despite everything, I am proud of how our community has come together over the past few months in our efforts to protect the future of the airport. I remain steadfast in my commitment to an ambitious plan for Doncaster and South Yorkshire, and those impacted by Peel’s decision today will be at the forefront of my efforts."

Steven Underwood, Chief Executive, Peel Group, said: “We recognise that we are living in uncertain times, and we understand that our announcement will be difficult to hear for the Doncaster and wider South Yorkshire communities in which we have worked and invested for over two decades. However, as has been seen many times before in industries undergoing structural change, although change brings uncertainty it can also bring significant opportunity.

“As the Strategic Review concludes, we look forward to collaborating with our partners to create a vibrant, long-term vision for GatewayEast and the airport site. We will not accept any public sector grant to cover the costs of an airport that is not viable due to its lack of adequate forward revenues and high operating costs. Accepting funds from SYMCA may postpone the inevitable for another thirteen months, but it will divert funds away from services on which communities throughout South Yorkshire rely.

“Instead, we intend to continue working closely with local and national stakeholders to develop a forward-thinking strategy for the airport site, in conjunction with the £1.7 billion GatewayEast development next door, to help unlock vibrant, job-creating alternatives to ensure future growth and prosperity. We have the potential to attract cutting-edge, future-tech businesses to South Yorkshire, but only if we are able to collaborate with our local stakeholders and community in South Yorkshire.”

DSA website

Images: DSA

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News: Lontra links with Elevation on recruitment

Innovative compressor manufacturer Lontra, has officially commenced the first phase of the recruitment drive for their new £17m facility in Doncaster.

Having worked up plans for a high-value digital services centre on the Advanced Manufacturing Park (AMP) in Rotherham, the Warwickshire firm secured financial backing from the South Yorkshire Mayoral Combined Authority (SYMCA) for a new Doncaster facility.

Lontra’s award-winning Blade Compressor technology is a patent protected, compact, rotary compressor demonstrating up to 34% improvement in electricity efficiency and reliability, for applications in energy intensive industries such as water treatment and pneumatic conveying.

This new facility, supported by £7m funding from SYMCA, offers an exciting opportunity to make a real impact. Being a part of Lontra, means shaping and progressing a rewarding career as it grows from a brand-new clean sheet building to a world-class facility.

Lontra have partnered with Rotherham-based Elevation Recruitment Group, who will manage the recruitment process for the Doncaster site.

As an established regional multi-disciplined recruitment agency, Elevation has extensive experience in managing and delivering multiple high-volume recruitment campaigns, for a number of manufacturing businesses across the region.

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As part of their core values, Lontra are committed to creating a diverse workforce, with an inclusive culture, where every employee feels valued and able to participate to achieve their full potential as well as, a focus on a good work life balance.

As a respected employee of Lontra, every person will play a significant role in forming the Doncaster factory, whilst helping the business to further develop technologies and expand into new industries for compressor applications.

Steve Lindsey, CEO of Lontra said “Lontra’s success is absolutely rooted in our people. Our core culture is one of openness and fairness and we strive to maintain this as every person at Lontra is a key part of driving towards our goal of becoming a global industry leader.”

John Bohan, Senior Director at Elevation Recruitment Group said: “Partnering with a company that has such an incredible reputation in the engineering & manufacturing space is something, I personally take with great pride. The expertise and networks we have across the specialist sectors required for these roles, will enable us to find the most valuable people for Lontra. I speak for the whole of the Elevation team when I say, we are truly excited for this partnership.”

Recommended reading: Leveraging Free and Low-Cost Online Systems for Business Visibility

Chris Dungworth, Head of Serviced at Business Doncaster warmly welcome Lontra to Doncaster, “As part of the support we have provided to Lontra throughout their significant move to Doncaster, we are delighted to be able to promote new quality vacancy opportunities to local residents through our Advance team and the Gateway East Academy. These services will work alongside Elevation Recruitment Group who have been appointed as Lontra’s recruitment partner”

The first phase of this recruitment campaign will include the search for a HR Manager, Facilities Manager, Purchasing Manager, QHSE Manager, Supply Quality Engineer, Buyer, Quality Engineer, IT Support, Production Supervisors, Teams Leaders and Skilled Operatives in Machining, Assembly and Testing.

Lontra website
Elevation Recruitment website

Images: Lontra

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News: Region's airport under review as concerns continue over commercial viability

The Board of Doncaster Sheffield Airport (DSA) has begun a review of strategic options for the Airport. This review follows lengthy deliberations by the Board of DSA which has reluctantly concluded that aviation activity on the site may no longer be commercially viable.

Whilst business parks have continued to be built around the site at pace, the airport itself has been severely affected by the COVID-19 pandemic and Brexit.

DSA’s owner, the Peel Group, as the Airport’s principal funder, has reviewed the conclusions of the Board of DSA and commissioned external independent advice in order to evaluate and test the conclusions drawn, which concurs with the Board’s initial findings.

Since the Peel Group acquired the Airport site in 1999 and converted it into an international commercial airport, which opened in 2005, significant amounts have been invested in the terminal, the airfield and its operations, both in relation to the original conversion and subsequently to improve the facilities and infrastructure on offer to create an award winning airport.

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The board said in a statement that "despite growth in passenger numbers, DSA has never achieved the critical mass required to become profitable and this fundamental issue of a shortfall in passenger numbers is exacerbated by the announcement on 10 June 2022 of the unilateral withdrawal of the Wizz Air based aircraft, leaving the Airport with only one base carrier, namely TUI.

"This challenge has been increased by other changes in the aviation market, the well-publicised impact of the COVID-19 pandemic and increasingly important environmental considerations. It has therefore been concluded that aviation activity may no longer be the use for the site which delivers the maximum economic and environmental benefit to the region."

DSA and the Peel Group now intends to initiate a consultation and engagement programme with stakeholders on the future of the site and how best to maximise and capitalise on future economic growth opportunities for Doncaster and the wider Sheffield City Region.

Robert Hough, Chairman of Peel Airports Group, which includes Doncaster Sheffield Airport, said: “It is a critical time for aviation globally. Despite pandemic related travel restrictions slowly drawing to a close, we are still facing ongoing obstacles and dynamic long-term threats to the future of the aviation industry. The actions by Wizz to sacrifice its base at Doncaster to shore up its business opportunities at other bases in the South of England are a significant blow for the Airport.

"Now is the right time to review how DSA can best create future growth opportunities for Doncaster and for South Yorkshire. The Peel Group remains committed to delivering economic growth, job opportunities and prosperity for Doncaster and the wider region.”

During the strategic review, the airport will operate as normal.

DSA website

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News: Lontra looks to South Yorkshire for 300-job manufacturing facility

Having announced plans at the end of last year to develop a high-value digital services centre on the Advanced Manufacturing Park (AMP) in Rotherham, the Lontra technology company is now looking to establish a new £18m manufacturing facility in nearby Doncaster.

The Lontra Blade Compressor is a step change in compressor technology developed by the Warwickshire firm. It is the first clean-sheet compressor design in over 80 years and can be used across many sectors such as aerospace, automotive, food and beverage, pharmaceutical manufacture and water treatment. It is proven to be 21% more efficient than the next competitor, offering incredible energy savings along with big improvements in reliability.

Having already secured £1.58m via the Local Enterprise Partnership (LEP), the Rotherham facility is expected to create 53 jobs in the area by 2024. For the next phase of its ambitious plans, Lontra said it would set up a customer support operation in a new building also at the AMP. This will enable the company to undertake Research and Development activity with customers to support the development of innovative new products.

The Lontra Digital Centre will enable the company to develop its aftersales support services to customers for its compressor products worldwide. The grant is also being put towards the purchase of innovative 6-demonstrator machines which will use advanced artificial intelligence techniques and sensoring systems to enable customers' machines to be controlled and monitored globally. This means Lontra will be able to reduce maintenance costs for its customers, minimise downtime and reduce energy bills.

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Phase 2 would see Lontra build a "smart" factory in the area, which will provide new engineering, research and development and technical support jobs.

An update to the South Yorkshire LEP's Business Recovery and Growth Board shows that the Lontra's factory is set to be in Doncaster, backed again by finance from the LEP and creating 300 jobs.

The minutes, state: "It was envisaged to establish a new manufacturing facility in Doncaster, within existing premises which was close to Doncaster Sheffield Airport. The total project cost was almost £18m.

"The outcomes would include 300 new high-quality manufacturing jobs to be created by 2025, which equated to approximately £17,000 against the grant, and would release approximately £11m of private sector match funding.

"The funding request was just over £1.9m on loan, to be fully repaid within 7 years, and £5.16m of grants."

Lontra website

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News: Mixed reaction to Freeport bid

An ambitious bid for a new Freeport to make South Yorkshire the largest advanced manufacturing hub in Europe, putting the area at the heart of world-class innovation, has been launched.

Freeports are secure zones where business can be carried out inside a country's land border, but where different customs rules and other favourable arrangements apply, such as suspension of duties, simplified procedures and tax exemptions. The Government outlined plans to open up to ten in the UK.

The Freeport, backed by key industry figures and politicians, centres around Doncaster Sheffield Airport and the iPort logistics hub, also in Doncaster.

New modelling suggests a Freeport in South Yorkshire would create 28,700 new jobs, add £169m to the local economy every year and boost exports by £410m.

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James Muir, Chair of the Sheffield City Region (SCR) Local Enterprise Partnership (LEP), said: “Establishing a freeport will build on our longstanding reputation for innovation and boost trade with our international partners.

“Our long-term Strategic Economic Plan sets out the road map to a stronger and more inclusive economy. A freeport would support these ambitions in creating more high-skilled jobs and training opportunities, attract further investment to our region and connect South Yorkshire the world.

“Our region is already home to world-leading research and innovation centres. A freeport would help our universities and businesses further explore opportunities in the areas South Yorkshire already has huge strength in, including aerospace and advanced manufacturing.”

Professor Sir Chris Husbands, Vice-Chancellor of Sheffield Hallam University and board member of the LEP, raised issues over displacement at the recent meeting, adding that Freeports were the wrong way to stimulate economic growth and that far better approaches could be taken for economic development.

Backing the bid, Jon Ferriman, Managing Director of Liberty Steel UK, which has significant, growing operations in Rotherham, said: “The Freeport will allow us to grow our exports, supercharge innovation and build the businesses of the future. Our existing advanced manufacturing base of course already includes names like Sheffield Forgemasters, Liberty Steel and Boeing, but we have the potential to go so much further. We are determined more well paying jobs in advanced manufacturing come to South Yorkshire and the Freeport is the way to do it.”

At the LEP meeting, Cllr. Chris Read, leader of Rotherham Council, queried the advantages of the potential different elements of having a South Yorkshire Freeport. Minutes show that "He was unsure whether it was pragmatic to submit a bid, due to the challenge for the SCR to establish the economic growth that was required. He did not wish to support the recommendations outlined within the report, although he appreciated that businesses were in favour of a South Yorkshire Freeport. He urged the Board to be cautious."

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News: SCR devolution set to proceed pragmatically

Secretary of State James Brokenshire has indicated that the Government is prepared for the Sheffield city region (SCR) devolution deal to move forward, four years after it was signed.

Rothbiz reported in March that Dan Jarvis and the four leaders of South Yorkshire's local authorities had reached a consensus on the way forward for devolution. The pragmatic solution allows for each authority to move to other devolution arrangements, should they wish to do so, in 2022 – the end of Mayor Jarvis' current term of office.

A lack of consensus from the leaders of South Yorkshire's four councils had denied the SCR the chance to conclude a devolution deal with the Government.

The 2015 deal included a mayor with responsibility over the region's transport budget, strategic planning and skills funding. It also promised £30m a year for 30 years to invest in local strategic priorities.

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Responding to the latest correspondence, the Secretary of State welcomed the commitment to the 2015 deal and the solution to its implementation that will see investment in the city region.

In a letter to the local councils, James Brokenshire MP said: "In principle, if you and your councils now consent, we are prepared to implement the deal with an understanding that after 2022 those councils that do not see there future in the city region should be free to join an alternative wider Yorkshire devolution group, leaving the SCR with a commensurately reduced devolution deal, and with such provisos as for example there remains an integrated transport system."

Work between the city region and the Government will now take place to ensure that the deal can be implemented.

Cllr. Chris Read, leader of Rotherham Council said that he was pleased the Government was willing to move forward with the two stage process, adding: "I hope we can now move quickly to implement it."

An estimated £75m a year of Government funding earmarked for much-needed economic development projects is yet to make it to the SCR due to the stalled devolution deal.

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News: Kingdom come back to Rotherham to tackle envirocrime

Enforcement to tackle litter, dog fouling and illegal parking in Rotherham is being strengthened through a new shared services model with neighbouring Doncaster Council.

Rotherham Council's "Time for Action" initiative involves enhanced environmental enforcement to target issues such as littering, dog fouling and fly-tipping. The authority has an environmental crime bill of around £1.7m a year.

As part of a trial, Kingdom Security were contracted in April 2017 to patrol known key hotspots and issue fixed penalty notices to anyone caught committing an environmental crime such as dropping litter.

Now a new contract has begun with Kingdom that will see up to six officers at any one time acting across the borough with powers to issue on-the-spot fines to offenders.

Fines for dropping litter are £80 with £150 for late payment. Under the previous arrangement, Kingdom received £42.50 for each correctly issued fixed penalty notice paid for from the fines issued and paid.

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Tender documents show that the Enforcement Services Envirocrime and Parking contract with Doncaster Council is worth £8.75m for three years. There is also an option to extend for a further two, 12 month periods.

Cllr. Emma Hoddinott, Cabinet Member for Waste Roads and Community Safety at Rotherham Council, said: "We know that dog fouling and littering are issues that you want us to tackle. By putting extra staff on the beat, we can specifically target people who refuse to clean up after their dogs or fail to use a bin for their litter.

"We want all of our residents to take responsibility for their environment and by increasing our capacity to tackle these offences, we hope that the minority of people who do cause problems will think twice in the future rather than risk a fine."

Alongside the Public Space Protection Order (PSPO), action has targeted Rotherham town centre to help improve the environment and change perceptions.

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News: Barnsdales acquires Bridge Property Management

Barnsdales, a leading South Yorkshire property group, has acquired Bridge Property Management in Swinton, Rotherham.

With its head office in Doncaster, Barnsdales includes a number of divisions focused on commercial property, residential lettings, facilities management and auctions. The company was established in 1905.

The Bridge Property Group is one of the Dearne Valley's longest serving agents dealing with property sales and the management of both residential and commercial property. It operates Bridge Property Sales Ltd and Bridge Property Management Ltd.

Following the deal, the office in Swinton which undertakes, sales, lettings and property management will continue to operate as part of the Barnsdales Group.

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Jason Barnsdale, managing director of Barnsdales (pictured), said: "During the last two years we have increased the volume and variety of our work and we have also expanded our geographical footprint, working with clients across the UK with a particular focus on property and facilities management.

"Our team has grown from 17 people to 40, and the takeover of Bridge Property Management is the next step in our ambitious plans. It enables us to expand our coverage into Rotherham and adds over 200 fully managed properties to our business."

Giles Brearley of Bridge Property Management will continue as a consultant to the business. He said:"We have a good loyal client base locally and we cover a broad spectrum of property management work. This agreement presents excellent opportunities for both businesses. Barnsdales has the potential to increase its business and I can be assured that my clients are looked after by a reputable and established company."

Bridge Property Management website
Barnsdales website

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News: Broadband boss back on the beat

Robin Powner, a long-standing Origin Broadband customer from Doncaster, had a surprise visit from the firm's CEO Oliver Bryssau when he needed an engineer recently.

When the company started in the ISP world over seven years ago, the two founders Oliver and Henri used to set-up customer routers in their homes. with rapid expansion across the UK in the last few years, this isn't possible anymore because of an increasing customer base.

That's until Oliver heard about Robin, who was left without any internet after another company accidentally took over his connection.

Mac, one of Origin's team leaders in the customer service department knew he needed to get Robin and his wife back online. This is when Oliver heard about the situation Robin was in and decided to bring back one of our old traditions.

Oliver and Mac, armed with their tech knowledge and a bunch of flowers, went to Robin's home and got him back online in no time.

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Oliver Bryssau, CEO of Origin Broadband, said: "We pride ourselves on giving the best customer service. It's been great to get back on the road again and meet our customers. I'd like to thank Mr and Mrs Powner, for inviting us into their home. Origin has grown a lot over the last seven years, but our customers remain at the heart of everything we do."

Launching in 2011, Origin has developed its own infrastructure and now host the sixth largest broadband network in the UK. Supplying phone and internet services to businesses and homes across the UK, clients include Amazon – where Origin is the preferred provider for all new warehouse and corporate sites, NHS Sheffield and various UK universities.

The company's growth has attracted significant investment, allowing Origin to move its head office from two sites in Doncaster to a single, larger base in Rotherham.

Taking on the 53,665 sq ft Unit 7 at Callflex Business Park at Manvers, the firm believes that it offers an even bigger opportunity for growth. The building, which had been empty ever since it was built, has the capacity to seat up to 700 people across all three floors.

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News: Business loan supports spa makeover

An award-winning massage therapist from Rotherham launched her dream spa after securing a lifeline Start Up loan from Finance For Enterprise.

After leaving university, Lindsey Jones from Ravenfield in Rotherham, carved out a successful career for herself in the retail industry but decided to turn her back on her regional management role. Opting to explore her passion for spa therapy, she secured a role with a leading skincare specialist where she could expand her existing beauty knowledge.

Equipped with a wealth of spa and wellness knowledge at her fingertips, Lindsey started offering treatments in her spare time; working from home and steadily developing a loyal client base.

Outgrowing the home, Lindsey found her perfect premises in the form of a Grade II listed property on the historic high street in Tickhill, Doncaster – yet appearances can sometimes be deceptive. Despite loving the look of the property from the outside, she realised that the inside needed its own major makeover.

Having been turned down for finance from the banks, the entrepreneur contacted the Doncaster-based alternative lending provider, Finance For Enterprise, which helps SME businesses to access funds required to launch, grow and expand.

Within just a few weeks her Start Up Loan application had been granted, enabling Lindsey to purchase the lease on the property, order equipment and obtain additional stock.

Sooner than anticipated, Lindsey found herself up against another barrier. Realising the renovations were more substantial than she originally anticipated, Lindsey turned to Finance for Enterprise for further support and was able to secure a top-up on her loan. The additional funding allowed her to successfully overhaul the new premises and complete a re-brand of the business within just two weeks.

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Since launching The Apothecary Urban Spa just two years ago, Lindsey has successfully created three new roles within the business, recruiting one full time Therapist and two Apprentice Therapists who are both under 19 years old, whilst developing over 20 bespoke treatments including full body massages, facials and manicures and pedicures.

Lindsey Jones, founder of The Apothecary Salon (pictured, right), said: "When I left my career in retail I wanted to achieve better job satisfaction, whilst also pursuing my interests in the spa and wellness industry. The power of spa and beauty therapies and how they can help people to relax and unwind is something that has always interested me and I was keen to explore this further with my business.

"As the business began to grow, I felt that I was trapped: reminders of my work would be the first thing I would see in the morning and the last thing I would see at night. I no longer enjoyed being self-employed and knew that something had to change.

"After I spoke to Gillian, my investment manager at Finance For Enterprise, she helped me to believe in myself and revived my business confidence. Without the loan and guidance from Finance For Enterprise, my business wouldn't be where it is now. I think myself lucky every day for being able to be my own boss and to have the support from Gillian whenever I need it."

Gillian Pickard, investment manager at Finance For Enterprise (pictured, left), added: "For many new businesses, accessing finance can be a major barrier; one which can inhibit growth and even force the business to close. As an investment manager my role is to encourage entrepreneurs to overcome the obstacles they face, helping them to access the right support at the right time.

"Working alongside Lindsey, I was able to secure her a small loan with the Government initiative Start Up Loans, as well as a top up of the loan further into her business journey. The funding she has received has enabled her to re-brand her business, operate from premises, renovate her salon, recruit her first members of staff and introduce a number of tailored treatments."

Lindsey was awarded the title of Start-Up Business of the Year at Doncaster Chamber Awards last year and is setting her sights on developing the business and expanding the property, with plans to open a beauty training school to help aspiring therapists learn the tricks of the trade.

The Apothecary Urban Spa website
Finance for Enterprise website

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News: Businessman brings Empress Building back to its former glory

The iconic Empress Building in Mexborough is being officially reopened next month and this includes revealing a brand new bar, bistro and coffee lounge, thanks to investment from local entrepreneur Jason Mace, managing director of Manvers-based Gala Tent.

The "Empress Rooms" bar and bistro will be officially opened on June 14 at a special VIP event, as part of a £150k investment to return the building to its former glory.

Over the past ten months, Jason has invested in refurbishing the former Empress Building ballroom and dance hall into a hub of business, health and community activity. The building, which dates back to the 1920s, was built to mirror the great dance halls in places like Blackpool and for decades it was the hub of social activity in the area but in recent years had fallen into disrepair.

Restored to its former glory, damaged rotten timber windows have been replaced with new PVC-u windows to improve its appearance, let in more light and make it more energy efficient for tenants using the building. Jason has invested in upgrading other empty rooms in the building for new businesses to lease, where customers will be able to undergo beauty or cosmetic treatments.

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Mace said: "The opening of the Empress Rooms is the culmination of many months of planning and significant investment in the building. This bar-bistro-lounge is just what Mexborough needs – somewhere that local people can meet up with friends, family or business colleagues and enjoy a meal, or just catch up over a coffee, Prosecco or a few beers! We're looking forward to bringing the buzz back into this part of the town."

Michelle Carr, who runs the nearby Park View Bar Grill and Function Suite in Swinton, was looking for a new business venture and, after viewing the premises, decided the Empress Building was ideal. She named the bar and bistro The Empress Rooms to capture the nostalgia of this iconic building. In the last few weeks, Michelle has been busy recruiting and will create several new jobs for people in the local area, including bar, waiting-on, kitchen and cleaning staff.

The bistro also has a new Head Chef, Chris Cole, who is passionate about health and is a qualified nutritionist. Chris and Michelle have worked together to create a menu of tasty dishes, which will be prepared daily from locally sourced goods.

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Michelle Carr said: "We are really excited about what we have planned for the Empress Rooms. It will be quite unlike anywhere else in the area and we hope will help to revitalise this part of Mexborough and bring more visitors into the town. Chris has a real passion for good quality food and locally sourced fresh ingredients and we'll be serving a variety of mouth-watering dishes to suit all tastes."

The Empress Rooms will be open from 8am Monday to Saturday. It will serve breakfasts, lunches and afternoon teas and will host a number of themed dining evenings such as steak and Italian nights. The venue can also be hired out for private parties, anniversaries, christenings, birthdays, Christmas parties, corporate meetings and charity fundraising nights for up to 100 guests, on Sundays and after hours on certain week nights. The Empress Rooms will also be offering diet planning and advice, weekly and monthly prepared diet packages.

The Empress Building, which sold at auction in 2017, is currently occupied by a number of organisations, including the charity Dearne Valley Personal Development Centre, the Personal Training Room, Grafters Ironworks Gym, Micky's Athletics and Sally Salter Sports Massage.

Empress Building website

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News: New £3.5m city region transport pot excludes Sheffield

A new £3.5m local transport pot for South Yorkshire will fund projects in Barnsley, Rotherham and Doncaster, but not Sheffield.

Members of the Sheffield City Region Combined Authority (CA) recently approved the creation of the pot as existing funding streams come to an end.

The decision to exclude Sheffield projects led to Cllr. Julie Dore, leader of Sheffield Council, questioning the rationale of the scheme and worries if it sets precedent for how other funding sources might be allocated.

The move appears to be the latest rift in the Sheffield city region (SCR) where issues such as HS2, devolution and paying for the Sheffield Supertram have caused splits between the four South Yorkshire authorities.

As other sources of funding come to an end, local authority leaders agreed that a decision be made for the CA to borrow £3.5m in order to create a local transport fund.

It would see funds split on a per-capita basis with Barnsley Council set to be apportioned £1,042,886, with Doncaster earmarked for £1,324,682 and Rotherham set for £1,132,432. Sheffield has not been allocated any of the £3.5m.

In Rotherham, the the apportioned cash is to be used to contribute to A631 traffic management improvements; A57 Anston Crossroads upgrading and improvement; A630/A631 Rotherway roundabout traffic flow metering and enhanced pedestrian facilities in Rotherham town centre.

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Minutes from the meeting of the CA show that Cllr. Dore "questioned the rationale of this pot and asked why, as a South Yorkshire badged initiative, it is only available to three of the four districts."

Officers suggested this arises from the identification of a large discrepancy in the amount of borrowing being invested in the Supertram network in Sheffield and the amount of borrowing being used to support projects in the other three districts.

The minutes add that Cllr. Dore asserted the Supertram network is not only used by residents of Sheffield.

Rothbiz reported in 2014 that the South Yorkshire Passenger Transport Executive (SYPTE) still had a deficit of £30.5m on its general reserve budget with a significant part of this relating to capital expenditure incurred by the PTE as part of the construction of the Sheffield tram network. The transport authority approved proposals to borrow funding and make a £30.5m capital grant to the SYPTE to cover the deficit with the aim of reducing the levies that councils pay each year.

In addition, a rail replacement scheme is entering its second phase. Following a £20m first phase, £12.5m has been set aside for phase two which is proposed to take place over the summers of 2018 and 2019.

The minutes also show that Cllr Dore. asked if this sets a precedent for how other funding sources might be allocated between partners going forward but officers noted there are no current plans to repeat this exercise.

The four authorities continue to pay an annual levy to cover the costs of the SYPTE which uses funding in the provision of public transport services and facilities. It has a annual budget of around £65m.

Cllr. Dore also requested a recorded vote be taken in respect of the recommendations. Cllr. Sir Steve Houghton, leader of Barnsley Council; Ros Jones, Mayor of Doncaster; and Cllr. Chris Read, leader of Rotherham Council all voted for the creation of the £3.5m pot. Cllr. Dore voted against.

SCR website

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News: Rotherham Council in talks over changes to PFI waste contract

Rotherham Council believes that the introduction of plastics to the kerbside waste collection service presents a low risk to its joint waste PFI contract.

Rothbiz reported last month that Renewi plc (formerly Shanks plc) was forced to make a £27m provision in its accounts as a result of its loss-making contract at the 220,000 sq ft "BDR" waste facility in Rotherham.

Barnsley, Doncaster and Rotherham (BDR) Councils secured £77m through the Private Finance Initiative (PFI) for the scheme and the operators signed a 25 year contract worth in excess of £750m with the councils for the treatment of black bag waste.

Following a consultation exercise, Rotherham Council is proposing to make changes to its waste collections. Paid for year round garden waste collections are due to start in Rotherham on October 29 with residents able to opt-in to the service at a cost of £39 a year. Kerbside plastic collections are set to be introduced in "early 2019" with the authority setting aside £5.54m for bins and vehicles.

A detailed paper to Councillors explains that the introduction of plastics to the kerbside waste collection service affects the waste tonnage and its composition being supplied to the residual waste disposal PFI contract which is due to continue until mid-2040.

Legally, the move may qualify as a "Significant Collection Change" and the Council said that it "has begun to engage with DEFRA and the PFI contractor informally around our proposals and will engage formally once the proposal is agreed."

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Since the Manvers facility opened, 96.5% of the waste received has been diverted away from landfill, cutting landfill taxes and C02 emissions.

Plastics from Rotherham black bins are extracted at the facility. Doncaster and Barnsley Councils already operate kerbside plastic collections. The rest is turned into a fuel which is used at the Ferrybridge Multifuel 1 facility in West Yorkshire. Once there, the fuel releases its energy to produce low carbon electricity which is supplied to the National Grid.

Trials may need to be carried out and if the changes affect recycling performance against pre-set targets or vary the PFI project materially then DEFRA may be entitled to withdraw some or all of the Waste Infrastructure Credits which support the PFI project.

Latest figures showed that the contractor was performing at 15.17% for recycling and was on target to achieve the 12.5% recycling performance by the end of the financial year. The contract includes a 12.5% termination trigger and a 19% target.

The report concludes: "The Council believes that the proposed new waste arrangements provide mitigation to any potential impact on the contractor and the risk to the PFI contract is therefore low.

"Firstly the removal of plastic from the residual waste stream may reduce costs at the PFI facility and therefore provide better value for money.

"Secondly, the introduction of kerbside plastic recycling will increase the Council's overall recycling rate and provide better value plastic into the market, which will militate against the volatility within low-value recycling markets.

"Finally, the Council believes it would be not in keeping with DEFRAs own priorities, or the South Yorkshire Strategy for the Council to suffer any contractual financial detriment for introducing kerbside plastic recycling, when the other authorities in the BDR Partnership already have it in place."

Last year, Renewi said that PFI contracts had come under pressure as a result of austerity measures, poor performance or because the contracts were inappropriate in the current market environment.

BDR website
Renewi website

Images: RMBC / Renewi

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