North Yorkshire Council has appointed financial investigators to look into decisions made at its loss-making housing company, Brierley Homes, after it forecast a £7.5m loss for 2025/26.
North Yorkshire Council has brought in financial investigators to look into its loss-making housing company Brierley Homes, it has emerged.
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.
York-based Veritau, which is owned by local authorities in Yorkshire and the North-East including North Yorkshire Council, provides internal audit and counter-fraud services to public sector and private customers.
The update was given to the council’s executive committee this week by Councillor Mark Crane, executive member for open to business.
He said:
“We are keeping a close eye now, as we have been for a while, on Brierley Homes.
“I do think, if I may say, that the appointment of the new managing director is a positive step forward and he has my confidence. He seems to have got to the bottom of the issues there and I feel that we are on a more sustainable footing.”
Cllr Crane added:
“I think members should also be aware that we have asked Veritau have a look at what has gone on over recent years with a view to reporting back to the shareholder board and the executive on any recommendations and any findings that they have.
“From there, we will take the matter further if we need to. I certainly feel it’s on a stronger footing now and I don’t think you can underestimate the amount of affordable homes that are being built as a result of Brierley.”
Cllr Crane said he was unable to elaborate further on what Veritau would be looking for when contacted by the Local Democracy Reporting Service.
The company appointed Tony Dodds as managing director earlier this year following the departure of Stuart Ede, who left the role in January.
Brierley Homes is forecast to make a loss of £7.47m in 2025/26 — despite a profit of around £700,000 being forecast.
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.
Council chiefs have previously agreed a £27m loan facility for Brierley Homes and the plan warns that £7m of the loan may still be outstanding in five years time.
Gary Fielding, the council’s corporate director for resources, told the executive committee meeting that despite the loss, the company did deliver some benefits to the council, including helping to provide more affordable homes.
He added:
“A point I would make is that while a £7.5m loss is clearly unwelcome, £1.5m of that was additional interest earned by the council as the funder of that loan so the net loss to the council is £6m.”
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