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Economic Development

Birmingham Airport boosted by second council loan

Solihull Council's cabinet agrees 'no brainer' decision to support transport hub as it continues to battle pandemic's effects

A second council loan for Birmingham Airport has been agreed

A second loan to support Birmingham Airport as it battles the impact of the coronavirus lockdown is set to be approved by council chiefs.

Solihull Metropolitan Borough Council's cabinet has agreed to an emergency loan worth £3.7 million for the airport, following on from Birmingham City Council last week rubber stamping £18.5 million in funding.

The capital is aimed at helping the transport hub survive this latest round of lockdown restrictions as government ministers continue to warn that it is too early to say if foreign holidays will be allowed this summer.

The cabinet's recommendation will be referred to the full council for final sign-off next week but members agreed it was a "no-brainer" given the airport's importance to the region's economy and the thousands of people it employed.

Solihull and the six other councils of the West Midlands metropolitan county own 49 per cent of the airport, 48.25 per cent belongs to the Ontario Teachers' Pension Plan and the remaining 2.75 per cent is held in trust for the staff.

Cllr Ian Courts, leader of Solihull Council, said: "If we don't make this investment, someone else will and what will happen, potentially, is we've lost any form of control."

Cllr Ted Richards, who is the council's representative on the airport board, said the whole region would suffer "economically and from every other direction" if the local authority and other partners failed to step in.