Council's 'overdue' accounts published

by OUR LOCAL GOVERNMENT EDITOR

The first annual accounts for a 'non-commercial' company set up by Scottish Borders Council show the fledgling SB Inspires LLP made a profit by providing professional educational development services to Glasgow's local authority.

SB Inspires failed to lodge accounts by the due date of August 3rd, 2023, according to Companies House which continues to maintain the necessary accounting paperwork is overdue. But in response to an inquiry by Not Just Sheep & Rugby last week, SBC claimed its officers had proof of postage to back its assertion the data had been sent to the Registrar of Companies before the deadline.

Now, the accounts document has emerged with a collection of reports to be considered by the council's elected members at a meeting later this week. It shows the accounts were signed off by Suzanne Douglas, SBC's Director of Finance and Procurement on June 29th.

When a partial change of use application was made in February 2022 for the premises now occupied by SB Inspires at Tweedbank, the initial design statement made it clear the Limited Liability Partnership would trade with the intention of being profitable.

However, after we reported on the planned council venture that statement was hastily withdrawn. The council stated at the time [March 2022] the original document had been substituted as it was 'factually inaccurate'. We were told: "The Business Inspire Learning is an SBC Education programme and, as such is non-commercial.”

The newly published accounts give the first indication of the purpose of and activities being carried out by the LLP.

Councillors are told: "The principal activity of SB Inspires during the period was delivering professional development training and digital education consultancy to educators in Scotland as an accredited Apple Professional Learning Provider (APLP).

The business review includes the following statement: "Scottish Borders Council have established the Inspire Learning programme, an education led digital programme to transform teaching and learning across the Borders for the benefit of all teachers, children and young people where Apple devices are given to all P4-S6 pupils and shared class sets of iPads for ELC to P3 children."

It goes on to explain that a gap in the provision of education focused digital skills nationally was identified. As a result of this, in order to mitigate any risk to the Council, SB Inspires was legally established in 2021/22 as a Limited Liability Partnership with the ambition of providing support and professional development opportunities to education technology projects and local authorities across the country and the rest of the world as an Apple contracted APLP. 

"The Inspire team achieved APLP status in March 2022, allowing the company to enter into contracts with Apple to deliver Apple Learning Coach courses and award candidate accreditation. Initially, the target market is educators in other Local Authorities and Multi Academy Trusts. SB Inspires LLP is 99.999% owned by the Council and is financed under a Facility Agreement with the Council. 

"A Project Board, supported through the Council, has been established and meets regularly to oversee the development and delivery of the initiative. A Project Team, consisting of officers from the Council, has also been established to set up the required systems and deliver the project."

A so-called Activity Summary within the accounts report notes: "Professional development in the form of the Apple Learning Coach qualification has been delivered to educators in Glasgow City Council during 2022/23, the final part of the qualification will be delivered in April 2023. Workshops on behalf of Apple showcasing Inspire Learning’s capabilities were designed and then delivered at the School Leaders Scotland conference in November 2022. 

"Discussions have been held with other local authorities in the UK to explore their visions for Apple Learning Coach and to outline how SB Inspires could support them in their objectives. A small team attended the British Educational Training and Technology conference in March 2023 where they had a stand and attended networking events at to promote the ‘Inspire Academy’ brand."

The accounts - covering the period November 2021 to March 2023 - show the LLP's turnover from providing training/workshops was £55,766 resulting in a gross profit of £15,132 after deducting the cost of sales.

Yet another tribunal 'defeat' for Avocet

EXCLUSIVE by BUSINESS STAFF

Unscrupulous ex-bosses of the insolvent Avocet Group of companies, already the recipients of a string of Employment Tribunal judgments for a range of misdemeanours, have now been served with a further demand - a £22,000 compensation award for unfair dismissal.

The latest ruling by ET judge Lesley Murphy brings to an end a remarkable campaign for justice by Tristan Jeffrey, from Wooler, Northumberland, who looked after livestock for Avocet's agricultural 'enterprise' on Harcarse Hill farm in Berwickshire. He was dismissed from the company's service in April 2020.

However, Mr Jeffrey concedes that neither he nor his colleagues are ever likely to see the tens of thousands of pounds due to them for breaches of employment law. In 2021 he was awarded £10,718 against Avocet Agritech Ltd - the latest in a series of names given to the failing business by its directors - for breach of contract of employment, unauthorised deductions of wages, and failure to pay salary on occasions.

Shortly after that initial ET judgment Agritech (respondent in the case), with a registered office at 25 Palace Street, Berwick-on-Tweed, was struck off the Register of Companies and dissolved before a so-called remedy hearing to decide on compensation could be held.

But in a very rare if not unique move, Mr Jeffrey went to court and successfully had Agritech restored to the Register in May of this year. That allowed him to make his case for an additional financial award despite the fact that all of the company's directors had by this time resigned.

Following the latest hearing at which the respondent was not present or represented, Judge Murphy decided a compensation award of £22,625 against Agritech was appropriate.

The written judgment sent to claimant and respondent, says Mr Jeffrey lodged a file of productions running to 347 pages.

The document adds: "He was greatly affected by stress arising from his relationship with the respondent and its termination. He attributes the stress to the conduct of the respondent and its officers/former officers".

According to company records, the directors of the business were Martin Frost, who also chaired the Avocet Group, and his wife Janet. Secretarial services were supplied by Eirlys Lloyd Company Services Ltd. All of the office bearers resigned in October 2021 although Companies House was not informed of the resignations until June 2023, a few days after the company was back on the register.

Judge Murphy writes: "I found the claimant attempted to give his evidence in an honest and straightforward fashion in order to assist the tribunal".

Mr Jeffrey had advised the hearing that he continued to be in 'difficult correspondence' with former directors of the respondent to this day.

The judge adds: "I accepted that although he received no medical treatment or formal diagnosis, he (Mr Jeffrey) was greatly affected by stress in the aftermath of the termination of his employment, arising from the dismissal and from matters related to employment".

The combined total of ET awards for Mr Jeffrey against Avocet now stands at £33,343 with a stipulated interest rate of 8% per annum.

Mr Jeffrey told Not Just Sheep & Rugby: "I know I will likely never receive the award; for me this draws a line under my employment fiasco that was Avocet." 

He said he would continue to "push for justice for shareholders, supporting various requests for information, in the hope the directors are made accountable for their actions".

A number of Avocet businesses are either in receivership or administration with long lists of creditors while the Frosts were declared bankrupt in October 2021.

Were council's accounts lost in the post?

by LESTER CROSS

Officers at Scottish Borders Council are disputing and challenging 'incorrect' information posted on the Companies House website which shows the local authority has failed to file annual accounts for a private company it controls.

But despite SBC's protests that its staff complied with a requirement to lodge accounts for its limited liability partnership called SB Inspires LLP with the Registrar of Companies by August 3rd this year, the Companies House website continues to display a notice indicating the paperwork is now overdue by more than six weeks.

Not Just Sheep & Rugby reported on the apparent breach of business regulations by the council earlier this month. Under the rules governing private businesses and LLPs, the Borders authority, if 'guilty', would be liable for a £375 fine - the penalty for filing accounts more than a month late.

However, following publication of our article, SBC eventually responded to our request for comment or a statement outlining their position.

They have now told us: "Unfortunately, the information online is incorrect, LLP accounts were filed on time.  Accounts must be posted physically, which they were, SBC officers have proof of posting."

Furthermore, we were told: "The council has contacted Companies House with an ask that they update their records and the corresponding information online is corrected; that they cancel the fine, and consider making electronic filing of LLP accounts a possibility."

In light of this 'new' information, Companies House was contacted for a reaction.

But their spokesman simply stated: "We don't comment on individual companies".

By way of background information, we were told: "It is possible that a change a company has told you about does not yet show on our register. The register of UK companies is not updated in real-time. For instance, when a company appoints a new director, it has 14 days to notify Companies House.

"Paper documents will take around a week to process (sometimes longer at peak times) and online documents are usually processed within 24 hours."

SBC was also asked to outline the nature of business being conducted by SB Inspires LLP since its formation in November 2021, and to list the reasons for its incorporation. These points were not touched upon in the council's response.

 

£108m Tweedbank project's special wildlife measures

EXCLUSIVE by DOUG COLLIE

Workmen installing essential infrastructure for the multi-million pound extension to Tweedbank village in the Central Borders have been advised to 'down tools' if badgers or great crested newts are spotted on site.

The advice and guidance forms part of a so-called Construction Environmental Management Plan [CEMP] produced by specialist firm Tweed Ecology for Scottish Borders Council. The local authority's in-house SB Contracts team has the contract for the first round of construction activities which include earthworks, drainage and access roads plus a mammal underpass.

In his 21-page document, Tweed Ecology's Reuben Singleton explains that a badger's breeding sett has been identified "under footprint of the route" on Lowood Estate, which was purchased by SBC to accommodate the flagship project.

And Mr Singleton also points out there are potentially protected species using the site, including nesting birds and bats as well as badgers and newts.

Two badger setts will be affected by the works, one requiring to be closed under a NatureScot licence, the other likely to be subject to disturbance with a licence also required by the developers.

Recommendations in a Species Protection Plan (SPP), drawn up by separate consultants, include the following instructions: "If a badger is seen during operations, all work must cease until the animal has moved safely away from the construction area.

"The construction area will not be lit overnight. Any amphibians or reptiles encountered during works should be collected and transferred to a bucket, or other suitable container, before release to the east of the footbridge. There is a small possibility that great crested newt are encountered during the site works; if any newt over 100 mm (10 cm) in length is encountered during works, works should stop immediately and further advice sought."

The site was to be surveyed prior to construction commencing to ensure no new badger setts have been dug in the site and to 30 metres - the distance that would precipitate the requirement for a licence to cover working near a badger sett. Contractors were to receive a talk to explain the precautionary measures.

According to the document: "Any large burrows that are observed within 30m of the works area must be reported to the site foreman and Ecological Clerk of Works (or ECoW) immediately. No works shall proceed within 30m of any suspected setts until the burrows are checked by an ecologist and a licence is obtained if required."

There are a number of other measures aimed at safeguarding the welfare of the local wildlife.

"No open pipes will be left overnight. Pipes will be blocked with sheets of plywood and sandbags to prevent animals entering. This applies to pipework which is being installed and stored lengths of pipe.

"No open trenches will be left overnight. Trenches will be covered or a means of escape provided for badgers and other mammals. The best method is to use a broad (minimum of 30cm) plank of wood to make a ramp from the trench bottom to the normal surface level. If trenches are to be left undisturbed for a period, then it is recommended that they are properly covered with sheets of plywood or similar which are weighted down to avoid badgers from digging setts in the trenches."

The CEMP says environmental objectives for the construction phase should refer to legal compliance and environmental good practice, these may include: Zero pollution incidents; Minimise waste sent to landfill; Minimise disruption to residents (and therefore complaints); Protect and where possible enhance biodiversity.

A report to SBC's elected members earlier this year revealed that the most recent estimates for the delivery of the Tweedbank expansion project, including housing, care and community facilities and infrastructure indicated full costs of £108 million.

Council fails to lodge accounts for arms length "business"

EXCLUSIVE by OUR LOCAL GOVERNMENT STAFF

A Limited Liability Partnership [LLP] which may or may not have been founded by Scottish Borders Council to run commercial activities at the local authority's Inspire Academy, is breaking business rules by failing to file accounts at Companies House.

The first set of annual accounts for SB Inspires LLP, established by the local authority in November 2021, should have been submitted to the Registrar of Companies by August 3rd this year. But the Companies House internet web page for the Partnership now carries an accounts overdue 'label'.

The absence of the LLP's financial records means its bosses are already liable for a £375 fine (more than one month but less than three months late) with the penalty due to double to £750 after three months.

 According to the UK Government website: "Consequences of not filing: Not filing your confirmation statements, annual returns or accounts is a criminal offence - and directors or LLP designated members could be personally fined in the criminal courts. Failing to pay your late filing penalty can result in enforcement proceedings." 

The LLP's designated members are named in Companies House filings as Scottish Borders Council and another council-run company called SBC Nominees Ltd., a non-trading business.

Several Scottish Borders Council elected members told us last year that they knew nothing about the decision to set up the arms length organisation.

One councillor remarked at the time: "SBC is currently setting up an educational facility to be based in an office at Tweedbank which will be known as Inspire Academy. The LLP may be needed to conduct the commercial side of the operation".

That certainly seemed to be a possibility in February 2022 when council architects submitted a design statement linked to a planning application for the academy.

According to that statement: "The business is an LLP and is a partnering project between Scottish Borders Council and Inspire. The purpose of the business is to equip their clients with digital skills to enable them to fortify their digital business abilities, personal software skills and teach others how to use this technology. Their demographic includes: local businesses, teachers and people who wish to expand on their personal abilities to use digital solutions for everyday activities.

"It is proposed that clients may access the space with pre-agreed booking. The business will be set up to enable research by the clients into new products and provide them with instruction in a workshop type environment. The proposed layout of the space will include a workshop area, a meeting room, focus area and exhibition space."

The design statement made it clear the business would be of a commercial nature, and would also be  "profit making". 

This document added: "There are several elements which make up the business including: research, workshops and teaching. The sole purpose of space is not for Academia or Educational purposes, it is to provide a service which supports a broad demographic. Parts of this commercial enterprise is similar to IT providers, website designers and technology suppliers. It is anticipated the maximum number of occupants within the area will not exceed 80 and would typically be around 45 (including 15 staff members)."

After Not Just Sheep & Rugby’s coverage of the design statement and the Inspire project, we carried a follow-up article on March 2^nd, 2022 which revealed the original design statement produced by SBC staff for the flagship Inspire Academy project had been 'factually inaccurate' and had been withdrawn, meaning the 'private commercial enterprise' had become a 'non-commercial education programme' within the space of two weeks. 

A revised Design Statement declared: "The proposal for this building is to occupy one area of the ground floor as a base for the award-winning Inspire Learning Programme. The pioneering programme seeks to transform learning in Scottish Borders and the building will provide a physical base for the Inspire Learning team to allow the programme to grow and expand its horizon.

"The space will enable Inspire Learning, and SBC, to keep it’s place at the forefront of education. transformation at a time where it forms an important part of the national conversation around education. It will also provide the potential for developing relations with other local authorities and education projects The proposed layout of the space will include a workshop area, a meeting room, focus area and exhibition space. 

"The Business Inspire Learning is an SBC Education programme and, as such is non-commercial.”

We asked the council to explain why there had been a complete U-turn from 'commercial' to 'non-commercial' in less than a fortnight. And we also asked: "It is now apparent that SBC will be funding the venture. We did ask previously for costs associated with the project, but none were provided. So can we again request details of the cost of the project and how it will be paid for?"

There was still no detail concerning the level of expenditure required to set up the academy. But according to a spokesperson at SBC: “The initial design statement was submitted in error and was removed due to its factual inaccuracy. This has now been replaced with an updated brief which more accurately reflects the nature of the proposal."

Scottish Borders Council has been asked for comment.