In December 2024, the Labour Government published further details of how they wish to restructure Local Government in England:
- https://commonslibrary.parliament.uk/is-my-council-going-to-be-abolished/
- https://www.gov.uk/government/publications/english-devolution-white-paper-power-and-partnership-foundations-for-growth/english-devolution-white-paper
This process has had three previous rounds of implementation, 1992-95, 2008/09 and 2018/21.
Luton Borough Council (LBC) has held talks with Milton Keynes Council (MK), Bedford Borough Council (BB), Central Beds Council (CBC), West Northamptonshire (WN) and East Northamptonshire (EN), about joining together into one Unitary Authority.
It would appear however, that the two Labour controlled Authorities at Luton and Milton Keynes wish to proceed without West Northamptonshire and East Northamptonshire, even though these Councils wish to continue to be involved, https://www.bbc.co.uk/news/articles/crk0knkmx86o
Reading this article, one of our group had the extremely pertinent thought, what does this mean for Luton Airport?
Obviously, an amalgamation would lead to LBC ceasing to exist. LBC is, of course, the owner of the airport through its company Luton Rising (LR). So, after an amalgamation, who would then own Luton Airport?
Would there be a transfer of ownership of LR to this new Authority, and therefore a sharing of the financial benefits, from the Dividend paid from the Concession Fee, when that dividend actually starts to be paid again?
LBC could set up LR as a company in its own right, which would require the transfer of its entire staff from their employ, but would also mean that Dividend Payments would cease, as there would be no legal obligation for them to continue. It would also of course mean that if LR struck hard times again, it could no longer tap up The Bank of Luton Council to bail it out.
If Luton Council did decide to transfer the airport ownership to the new Authority, it would of course be transferring over the circa £700 million in loans/debts to them as well.
As the reasoning behind these new authorities is to streamline costs to enable better spending in other areas, we feel sure that Milton Keynes/Central Beds Council and Bedford Borough would not be happy to start their new lives with Luton Council, with such crippling debts added, that they have not endorsed or benefited from?
If the Development Consent Order for expansion is granted, this new Authority would become the host Planning authority for the Application, which means it would assume control for enforcing LR’s Green Controlled Growth policy. And this would mean that Councillors from Milton Keynes and Bedford, and large parts of Central Bedfordshire, would be making decisions on a development that will have no detrimental effects on quality of life in their parts of the world. Would they therefore have the true best interests of those residents who are blighted, when it comes to expansion controls?
We are sure that Luton Council have advised their potential partners in any new Authority, of how airport ownership and planning responsibilities would work in any new structure.
But then again, with the Luton Council’s track record of not discussing anything regarding the financial aspects of LR and airport expansion in public, we would not be surprised if they have not!