Recent income from sales means a North Yorkshire Council-owned house builder should not need to borrow more taxpayers’ money, a senior councillor has told colleagues.
Leader of the council, Councillor Carl Les, told a meeting of the authority’s full council that Brierley Homes currently had a positive bank balance.
The company’s financial issues have prompted concern among opposition councillors who have questioned why large sums have been loaned to the company by the council.
The council chief was today asked for assurances by Green Party councillor Andy Brown that no further loans or other funding would be provided by the authority.
In response, Cllr Les told the meeting that Brierley Homes had a commercial loan facility from the council of £27m, after a further £2m headroom loan was authorised in September.
Of this funding, £1.55m remained available to be drawn down by the company.
Cllr Les added:
“Since the additional loan was approved by executive, I’m pleased to inform councillors that since that time in July, £3.8m worth of sales income has been received by Brierley Holmes and as of the October 31, the bank balance stood at £513,000, with sales income of just over £1m forecast for the end of this month.”
Cllr Les said the housing sector remained challenging and it would take time for the company to be profitable.
However, he added:
“Actions are ongoing to implement the recommendations of the review that we commissioned recently and was reported to the executive on September 16, and current projections do not indicate the need for any further loan to be drawn down.
“There can never be a 100 per cent guarantee on what will happen in the future.”
Cllr Les added that the company’s financial position was monitored closely by the Brierley Homes board, by council officers working on behalf of the council and by the shareholder committee, which he chaired.
Whinfield Bowling Club Invites Local Community to Free Family Open Day
Free Yorkshire Dales events offer insight into native wildlife
Addingham nursery and pre-school celebrates 25 years
Increase in shoppers being duped by AI 'High Street' scams
Financial investigators brought in to examine council-owned house builder
Free cycle security marking event
Skipton private hire boss fined for employing unlicensed taxi driver
Yorkshire Water hails decision to ban plastic wet wipes
Your Skipton and Your Ilkley to launch on DAB next week
Smiley/sad face speed signs set to remain banned in North Yorkshire
Repair café returns to Skipton next weekend
No motorists turned away from Skipton waste centres due to rule change
Mayor urged to "come to the table" to discuss road repair funding
Children are taking over the Leeds station tannoy this weekend – here's why
Campaign opposing wind farm on edge of Yorkshire Dales gathers pace
Skipton based charity appoints new patron
New strategy to address decline of nature across North Yorkshire
Yorkshire residents needed for new series of Location, Location, Location
Registration opens for Great Santa Fun Run
