North Yorkshire Council operates a vast range of companies. Some are designed to deliver a public service, such as leisure - but others are controversial and step into the private sector to make money.

The last 20 years has seen a rise in the way local authorities choose to operate services.

Some remain in-house, while others are handed over to arms-length companies to operate and, in some cases, turn a profit for the council.

North Yorkshire is no different. In fact, the council operates or has an interest in 12 companies, known as the Brierley Group, for various different services.

With this in mind, the Stray Ferret has looked at which companies the council owns and how they have performed.

NYNet

In 2007, North Yorkshire County Council, which preceded North Yorkshire Council, launched its own broadband company called NYNet Limited.

The goal was to 'improve connectivity and broadband services' across the north of England in both the public and private sector.

The company is 100% owned by the council and any profit made goes towards frontline services.

According to a financial outturn report for 2023/24, the firm posted a £404,000 pre-tax profit due to “a steady increase in orders from private sector customers”.

First North Law

North Yorkshire Council ventured into trading specialist legal services in the shape of First North Law in 2018.

Headed by Barry Khan, the council’s assistant chief executive for legal and democratic services, the firm specialises in a wide range of legal services including commercial and procurement services and employment law.

The company, which is recognised by the Solicitors Regulation Authority, is controlled by the council and is considered a “micro-company”, according to its accounts.

The firm posted a profit of £15,000 in 2023/24, but has faced problems with recruitment due to staff largely being seconded from the council.

A restructure of the authority’s legal team during the transition to the unitary authority has meant staffing “has been scarce”, an outturn report for the company said.

Brierley Homes

Perhaps one of the better known council owned companies is Brierley Homes.

The housing firm, which builds both market and affordable houses across the region, budgeted to make £959,000 but lost £1.3 million in the last financial year.

Much of the loss was attributed to a site in Marton-Cum-Grafton, which the company said played a “a significant part” in the loss due to “delays and additional work needed on that site impacting on the completion of homes and sales on other sites”.

According to its own forecasts, the firm sold 46 affordable homes last year and plans to deliver a further 163 over the next four years.

One of the sites earmarked as a future project is in Kirkby Malzeard. Called Laverton Oaks, the scheme consists of 33 homes, of which 13 will be affordable, and is aimed at first-time buyers and families.

Brimhams Active

Originally a local authority-controlled company established by Harrogate Borough Council, Brimhams Active operates the district’s leisure centres.

It also manages the Turkish baths in Harrogate and several ‘wellbeing hubs’.

The firm has since fallen under the control of North Yorkshire Council following the founding of the new unitary authority.

Its latest accounts show that the company posted a loss £491,000 in 2023/24.

A council report said the figure was down to construction delays at the Harrogate Hydro and Knaresborough Leisure Centre.

The report also described the loss as a “cost of operating council owned leisure facilities as opposed to being a true commercial loss”.

Regardless, the council intends to overhaul Brimhams Active over the coming months.

The company is set to be rebranded Active North Yorkshire as part of plans to bring all leisure services back in-house.

The services were run by five different operators in the old district council areas prior to the creation of North Yorkshire Council in April last year.

Bracewell Homes

Another company which was run by the former Harrogate Borough Council is Bracewell Homes.

The housebuilding company, which was established in 2019, aims to generate a profit for the council and to intervene in Harrogate’s pricey property market by delivering much-needed rental and shared ownership homes.

Its latest financial outturn shows a profit of £1.693 million, which was £174,000 higher than budgeted.

The council put the position down to “property sales not materialising and Bracewell retaining the full value of the asset and associated rental income”.

Maple Park

Maple Park is a crematorium, wake facility and cafe based in Hambleton.

The site generated £356,000 profit in the 2023/24 financial year after it gained “very good reputation and with the large catchment area”.

However, the crematorium is set to be brought in-house this year.

North Yorkshire Highways

Set up in 2020, North Yorkshire Highways, which trades as NYHighways, is a limited company owned by the council.

Its purpose is to maintain the county’s roads, but it also ventures into the private sector through offering MOT testing and maintenance of pavements and kerbs on private land.

Its latest outturn shows a profit of £113,000 after “over double the external sales originally budgeted” were achieved.

Align Properties Partners/Align Property Services

One of the council’s recent ventures is expanding the services of its property companies.

Building design consultancy Align Property Partners (APP) made £1.2 million last year after it started operating on a commercial basis.

The move came after its “teckal” status, which means the council can directly award it procurement contracts, was transferred to separate firm called Align Property Services (APS).

The authority said that the status restricted APP to no more than 20% trading with third parties. As such, it decided to move the contract to APS to allow the existing company to operate commercially.

Yorwaste

Owned by North Yorkshire Council and City of York Council, Yorwaste is a commercial waste company.

The company operates in commercial waste disposal and recycling, including converting landfill gas into energy.

Last year, the firm exceeded expectations by making £1.1 million against a budgeted forecast of £78,000.

A council report said revenues from landfill gas contributed to the financial performance due to high energy costs, but these were expected to fall in the coming year.

Veritau

Launched in 2009 in partnership with City of York Council, Veritau is an auditing company which operates services such as internal auditing, counter fraud and risk management.

Over the years, Middlesborough Council and Redcar and Cleveland Borough Council have also joined the group.

The last financial year saw a £20,000 profit for the company. In 2024/25, the firm is expected to undergo a corporate restructure.

North Yorkshire Education Services

North Yorkshire Education Services, which trades as NYES, offers a wide range of school improvement and professional support services on behalf of the council.

Among those include catering, caretaking, resourcing and property.

Net profit from the company last year stood at £85,000, according to a council report.

Central Northallerton Development Corporation

Set up as a joint venture between the now defunct Hambleton District Council and Wykeland Property, the corporation was founded with the purpose of redeveloping the former Northallerton prison site.

The project has since been completed and is now called Treadmills. However, several units at the site are still to be let.

The site is owned by North Yorkshire Council, with the corporation acting as development manager.

The corporation also leases Crosby Road car park, which is next to Northallerton Fire Station, from the council and generates its income from it.

Its financial outturn last year was £19,000 profit against a budget of £7,000.

In a report, the council said it was “in discussion” with the company over its car parking arrangement with a view to reviewing it in order to allow the venture to be dissolved.