North Yorkshire Council has approved an additional £1.4 million loan to its commercial house-building subsidiary, Brierley Homes. The decision was made urgently by the council leadership without a formal executive committee vote due to cash-flow pressures.
Council officers said the funding was required after a series of property sales fell through, creating a risk that suppliers would not be paid. The loan will support ongoing development projects and ensure Brierley Homes meets its obligations to the supply chain.
The council has previously lent £22.493 million to Brierley Homes, with £2.346 million in unpaid interest. The original repayment deadline was extended to 2028. The latest funding will be provided at the base interest rate, reflecting the company’s focus on affordable housing.
Brierley Homes is currently delivering developments that exceed planning policy requirements, including 127 additional affordable homes. A further report on cash-flow management and loan details is scheduled for the council’s executive meeting on 16 September.
Opposition councillors have raised concerns about the decision to extend funding, citing the company’s existing debt and interest obligations. Council officers maintain the loan aligns with commitments to affordable housing and supplier payments.
