Opposition councillors on North Yorkshire Council have asked for a decision to put aside £7m for the council’s struggling house-building company to be reviewed.
The move comes after it was announced that council-owned Brierley Homes was forecast to make a loss of £7.47m in 2025/26 — despite a profit of around £700,000 being forecast.
Council chiefs have also been warned that £7m of an agreed £27m loan facility for Brierley Homes may still be outstanding in five years.
Earlier this week, members of the council’s executive committee agreed to set aside a £7m reserve in case the loan was not fully paid back in a move senior officers said was a “prudent” measure to minimise the risk to the authority.
But Councillor Kevin Foster, leader of the Green Party and Independent Group on the authority, has formally requested a call-in of the decision to agree the reserve.
The decision will now be looked at by the council’s corporate and partnerships overview and scrutiny committee on June 15
Cllr Foster said the call-in was supported by all opposition group leaders.
He said the aim was to ensure greater democratic scrutiny of the executive decision.
He said: “This is a significant financial commitment involving public funds, and it is right that councillors have the opportunity to fully examine the risks, transparency, and value for money involved.
“Residents expect openness and accountability when decisions of this scale are made.
“There are important questions around financial exposure, alternative options that may or may not have been considered, and how this proposal fits within the council’s wider housing and financial strategies.”
He added: “Given the level of public interest in this issue, additional scrutiny through the appropriate committee is both reasonable and necessary. Democratic oversight is essential when dealing with decisions that could have long-term implications for residents and council finances.”
It emerged this week that the council had brought in financial investigators to examine Brierley’s finances.
Senior councillors heard this week that the company had appointed Veritau to examine decisions made at the construction company, which reported a £7.5m loss for 2025/26.
The council has blamed the poor performance on less income from sales than expected, increased costs and delays in the completion of homes, leading to increased overheads and interest costs.
Councillor Mark Crane, executive member for open to business, told colleagues at the executive meeting on Tuesday that a new managing director had been appointed and the company was on a “more sustainable footing”.
The meeting also heard that the council earned around £1,5m in interest from Brierley last year and that the company was helping to deliver more affordable homes.
Be the first to comment