Monday, 12 October 2009

Tameside Council Tax to Increase by 20%?

Today, the Business Secretary, Peter Mandelson announced a £16bn sell-off of public assets to raise cash for the government. He said in a speech that this could include "local authority airports" such as Manchester Airport.

This would be a concern for Manchester Airport Group (MAG) which is 55% owned by Manchester City Council and nine other local authorities in Greater Manchester including Tameside which own 5% each. During the Congestion Charge debate, it was dismissed by Sir Richard Leese that the Airport should be sold off to cover the proposed £4bn public transport investment as it could lead to council tax increases of 20%.

The MEN article says that the airport gave a dividend of £25m in 2006, but councils also have to make an annual contribution to pay off the debt of building Terminal 2.
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