Millions at Risk? Teesside Airport Loan “Not Expected to Be Repaid”

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Teesside Airport Loan Repayment in Doubt as Tees Valley Sets New Budget

Teesside Airport Loan “Not Expected to Be Repaid in Foreseeable Future”, Budget Papers Reveal

15th March 2026

Fresh questions have been raised about the long-term financial sustainability behind Teesside International Airport after official budget papers revealed that a major loan linked to the airport is not expected to be repaid in the foreseeable future.

Documents prepared for the Tees Valley Combined Authority (TVCA) Cabinet meeting on the 20th March 2026 highlight the airport loan as one of the key financial risks facing the authority as it sets its latest budget and medium-term financial plan. The papers state that the airport loan is now not expected to be repaid in the foreseeable future, raising new scrutiny over the long-term financial model used to support the publicly backed airport project.

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Officials acknowledged that the airport loan represents a significant financial exposure for the authority, although it is being monitored as part of the wider financial planning process. The revelation comes as the Combined Authority continues work on strengthening its financial governance following concerns raised by external auditors and the Government’s Best Value Notice issued in 2025 & claims the TVCA could be subject to a controversial Second Best Value Notice in April. As part of the reforms under the previous Best value Notice issued by the Government, the authority says it's undertaken detailed work to fully understand its financial position, including the lending arrangements, assets and liabilities linked to major regeneration and infrastructure projects.

The airport loan forms part of a wider picture of public investment aimed at restoring and developing Teesside International Airport after it was brought back into public ownership in 2019. Supporters of the project have argued the airport is a long-term economic asset for the region, capable of generating jobs, attracting investment and improving connectivity.

However, critics have repeatedly questioned the financial risks associated with the project and the scale of public funding committed to its redevelopment.

The Combined Authority’s medium-term financial plan sets out the expected income, spending and financial pressures facing the organisation over the coming years, with major infrastructure and regeneration investments forming a key part of its strategy.

Cabinet members were told that identifying and managing financial risks – including those linked to the airport – remains an important part of the authority’s ongoing financial oversight.

The final budget for the 2026/27 financial year is due to be formally considered by the Tees Valley Combined Authority Cabinet at its meeting on the 20th of March.