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27
May 2021
County council 'optimistic' over redeeming Brierley Group losses
Leading figures at North Yorkshire County Council, which launched numerous loss-making commercial ventures, have spoken of their optimism of turning things round.
The council's Brierley Group firms made collective losses of £639,000 last year.
Gary Fielding, corporate director at the council, said the losses experienced by its firms, such as housebuilders Brierley Homes, needed addressing after he was repeatedly challenged over the extent of the black hole.
A meeting of the authority’s shareholder committee heard the group was not “a money pit” at which taxpayers' money was being thrown without being properly accounted for.
Officers and executive members gave a range of explanations as to why the group of firms, which includes ones offering auditing, waste and legal services, had gone into the red.
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Members were told the covid pandemic had been “tremendously difficult” for the schools’ catering firm, as kitchens had been kept open for the small number of pupils attending during lockdown.
Councillors heard the £639,000 loss over the last financial year was just a temporary position as some of the council’s firms worked on long-term ventures, such as housebuilding.
'Hold our nerve'
Officers added the authority would be able to offset its tax position at a group level, utilising the losses of some of its ventures against its profitable ones, to be as tax efficient as possible.
Mr Fielding highlighted that some of the council’s firms had accumulated profits over several years.
He said:
However, Cllr Mike Jordan, a Conservative representing South Selby, replied:
Mr Fielding responded:
The council’s finance executive member Cllr Gareth Dadd then said alongside aiming to limit council tax rises, the ventures were set up to provide services.
The meeting heard the council had calculated that the firms had generated £5.2 million of shareholder value in 2020/21.
The council’s chief executive Richard Flinton said the diversity of the group had helped the authority into a better position than the one many other councils were facing.
He said some of the firms were providing unique services for the county. Without the broadband firm NYNet, the meeting heard, many people in North Yorkshire would not have received superfast broadband.
Mr Flinton said Brierley Homes was “a potential disrupter to the market” as it would be more prepared to move forward with developments faster than some major building firms, responding to the need for homes.
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