North Tyneside Council’s long term investments and assets have seen a dramatic increase in value as its Newcastle Airport shares rose in value.
The authority has seen an increase in its assets, particularly from its holdings and shares in Newcastle Airport, as people are more free to travel abroad following the pandemic. The value of the council’s stake in the airport has increased from £7.8m to £10.8m between March 2021 and March 2022.
The council’s property assets have also increased by around £20m, bringing the total value of its long term assets to £1.116bn. This includes the council's property and machinery.
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Killingworth councillor Garry Bell said: “It's good to see the shares in the airport go back to pre-Covid levels as more people are going back to the airport. It would be pure folly to sell our shares in the airport, I’m glad it’s bringing money into the authority.”
Shares in the airport are divided between North Tyneside, Northumberland, Sunderland city, Durham, Gateshead, Newcastle and South Tyneside councils. AMP capital owns 49% of Newcastle airport also.
A council spokesperson added: “The value of our shareholding in Newcastle Airport has increased from £7.830m in 2020/21 to £10.856m in 2021/22. This has been due to a relaxation in Covid restrictions which has seen a return to almost pre-pandemic levels of activity.
“In addition, South Tyneside Council as lead authority for the airport have reviewed externally traded shares at other airports and found the increase in our valuation is backed up by a return to pre-pandemic levels at similar airports.”
Following the enactment of the Airport Act 1986 all seven North East authorities were allocated shares in Newcastle International. These figures come from a draft internal audit conducted by council officers, which will form part of a total financial report scheduled to be published in November this year.
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