Decision details

The Corporate Director Resources agrees the increase in the loan facility available to Brierley Homes from £22.9m to £25m in line with Executive approval of 13 March 2018 on the basis that Brierley Homes produce and consider a cashflow position on a monthly basis and for this to tie in to the pipeline of the business (ie build and sales forecasts over the forthcoming few years).

At its meeting on the 13 March 2018, the then North Yorkshire County Council Executive approved the recommendations contained in the ‘Land Development Programme of Brierley Homes’ Report. As part of these recommendations, the Executive agreed to grant a loan facility of up to £25m (the “Facility”) to the Company which could be drawn down subject to review by the Section 151 Officer or a representative nominated by the Section 151 Officer for this purpose on request of the Brierley Homes Board. On 12 February 2020, delegated approval was given for a loan for Brierley Homes of up to £22.900m for the construction and sale of homes.

As at 31 March 2025, the principal loan with Brierley Homes Ltd stands at £22.493m. Due to a number of construction delays and reprogramming of sales from the 24/25 financial year into the 25/26 financial year, it has become necessary for the maximum loan to be increased to the £25m limit agreed by Executive to allow construction to continue in line with programme and to cover this time until sales income is received.

An alternative option would be not to provide the additional loan facility but this would mean onsite construction would have to be reprofiled which would not result in the most financially advantageous outcome for the Council or the Company.