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16
Sept
Finance chief defends loan to Brierley Homes amid public concern
A senior councillor has defended a loan to North Yorkshire Council’s loss-making housing company amid public concern.
Brierley Homes, which is owned by the council, was founded to build homes that fund council services.
However, the loss-making firm has been propped up by a £27 million council loan and faced criticism for wasting taxpayer money.
The company has come under increased scrutiny this past few weeks after it was revealed it is set to post another loss of £5.8 million loss in the current financial year.
At an executive meeting on Tuesday (September 15), a member of the public, referred to as Mr Kightley, said the financial support amounted to “corporate welfare funding”.
He asked the executive whether it was time to “stop throwing good money after bad” and “pull the plug” on the company.
A Brierley Homes scheme in Marton-cum-Grafton.
Cllr Peter Wilkinson, Conservative executive member for finance and resources, defended the council’s position on Brierley Homes.
He pointed out that the company had put in place a five-year recovery strategy, which aims to return it to a “more stable trading position”.
Cllr Wilkinson said the council would also “ultimately benefit” from the terms of the loan agreed with the firm.
He said:
The council policy on making loans to a company in which it has an interest is incorporated into the annual treasury management strategy. The loan to Brierley Homes is provided under this strategy from cash the council has available for investment and so lending money to any of our companies does not mean money is stripped away from essential frontline services. It is not funded from the council’s annual revenue budget.
The council will ultimately benefit from the commercial loan with interest rates charged to the company which supports the revenue budget and therefore the frontline services.
It comes as a report before a council's shareholder committee on September 8 revealed the company is forecast to report a loss of £5.8 million in 2026/27 — of which £3.7 million is loan interest due to the council.
The firm also posted a £7.47 million loss in 2025/26, despite forecasting a profit of £350,000.
Tony Dodds, managing director of Brierley Homes.
Tony Dodds, Brierley Homes managing director, told councillors at the meeting last week that it was a fresh start for the company.
He said:
This is an entirely new Brierley Homes, a new strategy, a new approach to the company and a new team.
I’ve been in post officially since the beginning of February so we’re looking at the company afresh, and we’re changing the direction.
He said that, as well as continuing to build housing for the open market, the company would work with housing associations to build more affordable housing, which is deemed less risky.
It would also focus on self and custom-build properties, with funding provided in advance.
However, councillors questioned whether the housing company will ever turn its finances around — despite a five-year recovery plan being drawn up.
Cashflow issues
Brierley Homes, which was founded in 2017, oversees housing developments across the county.
Current projects include Laverton Oaks at Kirkby Malzeard, The Paddocks at Great Ouseburn and Yew Tree Farm at Marton-cum-Grafton.
The company has been criticised by councillors for being too reliant on council loans to help its cashflow issues.
The council’s most recent decision in March saw it approve a £300,000 drawdown from a £27 million loan facility for the firm.
In May, council chiefs were warned that £7 million of the £27 million loan may still be outstanding in five years.
The move has led opposition councillors, including Greens and Liberal Democrats, to call for greater transparency over the company.
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