Scrutiny of loss-making Brierley Group delayed by nine months

North Yorkshire County Council has been criticised for delaying scrutiny of its loss-making Brierley Group.

The council set up the Brierley Group in 2017 to bring together council-owned companies and save money.

But the group, which includes housebuilding company Brierley Homes, reported a loss of £639,000 last year.

Brierley Homes’ developments include Woodfield Square in Bilton and Millwright Park in Pateley Bridge.

Council officials this week told a shareholder committee the group had bounced back with a “really positive” first three months of the financial year.

But a Conservative councillor questioned why the Tory-run authority had delayed its corporate scrutiny committee examining the performance of the Brierley Group by some nine months.

Cllr Richard Musgrave, who represents Escrick, said: 

“Our scrutiny is pretty much pointless if it is so out of date considering it.

“The Brierley Group made a whacking great loss for the year to March 2021.

“I certainly have some questions I would like to ask about the performance of the Brierley Group.”

Does council have business acumen?

Cllr Musgrave’s concerns follow other members of the authority questioning whether the council has the necessary business acumen to run the array of firms, in particular housebuilding.

However, senior county councillors said they were positive the losses could be recouped.

The committee was told the Brierley Group was seeing “promising shoots of recovery”, with a predicted profit by the end of the year of £51,000 as complications arising from the covid pandemic begin to wane.

Read more:

Members heard the Brierley Group’s education service was adapting to meet changing demands and its internet access arm had seen a strong start to the year.

They were also told First North Law, a council-controlled law firm, had been buoyed by improved performance, waste management company Yorwaste had performed well and its building design consultancy was forecasting a return to profitability.

However, Brierley Homes was forecast to generate a loss for the year of £712,000.

The meeting heard a primary concern for Brierley Homes was the availability of materials and labour to complete committed projects to time, cost and quality.

Brierley has a ‘perception problem’

Cllr Don Mackenzie, executive member for access, said the outlook for Brierley Homes was much more positive than the council had become accustomed to over the last year, and highlighted how the authority was forecast to receive £4.3 million in savings and benefits this year from its companies.

Cllr Gareth Dadd, the council’s finance executive member, said Brierley Homes was suffering from a “perception problem” due to upfront housebuilding costs and when its developments in Harrogate and Pateley Bridge were completed next year the figures would look different.

He said: 

“If you were a layman looking at that sort of balance loss or perceived loss you would be quite startled by it. We know that it is not a true reflection.

“We have a duty to shoot this loose rabbit dead that it is costing the taxpayer hundreds of thousands of pounds or has even snowballed into millions.

“It is going to take some time before we realise the benefits of it. Politically we are going to have to live with the perception issue with the hope that those who are casting doubt on it listen to the full story and not just a headline figure.”