Its time for them to go: Fallout From the Collapse of Cleveland Fire Brigade Risk Management CIC: What Went Wrong & What It Means for Tax Payers..
- teessidetoday
- Nov 21
- 4 min read
A Scandal of Silence, Cover-Up's & Conflicts of Interest: The Fire Brigade CIC That Was Allowed to Fail
21st November 2025
The long-running saga surrounding the collapse of the public corporation Cleveland Fire Brigade Risk Management CIC has finally been laid bare in a damning governance review presented to the Cleveland Fire Authority’s Audit & Governance Committee.
For years the Community Interest Company (CIC) underpinned by Cleveland Fire Authority had been promoted as a flagship “commercial arm” of the Fire Brigade—designed to reinvest profits into community fire safety projects.
Instead, the company collapsed into liquidation in June 2025, leaving behind reputational embarrassment, unanswered questions, and at least £69,100 worth of taxpayer-linked income that will never be recovered. While the Authority insists it is financially protected from the fallout, the political damage is said to be significant—especially given how intertwined the Brigade’s leadership became with the failed venture, exposing an entire structure of oversight that was fundamentally flawed from the start.
A Company That Drifted Out of Control
The CIC was created in 2011, with the idea that a fire-service-branded company could offer training, safety services, and consultancy while reinvesting profits locally. Early on, senior Brigade leaders sat on the CIC board—including the Chief Fire Officer, Monitoring Officer and Treasurer—ostensibly to supposedly protect the Fire Authority’s financial and reputational interests.
But as the review admits, this arrangement created a huge conflict of interest that was “extremely difficult (if not impossible) to demonstrate as independent.”
Over time, senior officers stepped away and were replaced by external directors, further weakening the link between the CIC and the Fire Authority. The Fire Authority reportedly only received one report a year on the company’s performance—months after the financial year had ended.....leading to serious warning signs being missed.
The CIC’s finances deteriorated rapidly:
March 2022: £213k cumulative profit
March 2023: £168k cumulative profit
March 2024: £592k cumulative loss
This catastrophic decline unfolded almost entirely out of the Authority’s sight.
A Governance Failure Years in the Making
The report identifies several key failings:
1. A Woeful Lack of Financial Oversight
The CIC was never required to provide quarterly financial reports. Had this basic safeguards been in place, the Fire Authority would have spotted the spiraling losses much sooner.
2. Poor Board Structure
The review states that the Monitoring Officer Peter Devlin and Treasurer, former Chief Finance Officer for Hartlepool Borough Council Chris Little should never have been appointed to the CIC's Board. Their dual roles made genuine independence impossible, creating a huge conflict of interest.
3. A Branding Problem
The CIC used the name “Cleveland Fire Brigade Risk Management,” blurring the lines between the company and the actual public fire service. The review admits this made it hard to demonstrate legal independence—and risks public trust in the Brigade itself.
4. Dubious Decisions by the CIC Board
Several reckless decisions were also uncovered:
Switching from the Authority’s financial system, reduced independent oversight.
Changing external auditors without any requirement to consult the Fire Authority.
Delaying publication of accounts until December each year—months after the Authority needed them.
Creating a second company, CFB Risk Management Group Ltd, behind the scenes, without full Authority approval.
The liquidator has now confirmed this second company will also be dissolved.
A Financial Blow—But a Much Bigger Reputational Hit
While the CIC’s structure ensured the Authority was only legally liable for just £1, the Fire Authority still loses:
£68,060 from one loan
£41,039 in unpaid service-charge fees
£40,000 in earlier income written off
Total unrecoverable amount: £69,100.11
The review claims this will be covered by investment income so residents will not notice the immediate impact. But the reputational damage—to both leadership and oversight—is said to be 'significant' and 'ongoing'.
Who Was Responsible?
The governance review carefully avoids naming individuals, but the timeline makes it clear:
The former Chief Fire Officer, who chaired the CIC until September 2024, had sweeping influence over what information reached the Authority.
Directors appointed by the CIC made major decisions independently, including the creation of a new company and changes to accounting processes.
The Authority’s oversight structure was so weak that it effectively relied on the CIC itself to report problems voluntarily.
The report hints that the liquidator’s final investigation—submitted to the Government Insolvency Service—may reveal more....
Could the Collapse Have Been Prevented?
Yes—and the review admits it.
If quarterly financial reports had been mandatory, the Fire Authority could have intervened a full year earlier. If the Treasurer had retained access to financial systems, discrepancies in cashflow and HMRC payments would have been obvious. If a dedicated CIC Oversight Committee had existed, major decisions would not have slipped through unnoticed.
Instead, the CIC was allowed to drift—ultimately sinking under financial mismanagement that went unchallenged until it was too late.
What Happens Next for Cleveland Fire Brigade?
The Authority says it has “no intention in the foreseeable future” of creating another CIC or commercial arm. Internal governance processes are being tightened, including:
minute-taking for meetings between statutory officers
strengthened legal and financial oversight
a review of the Deputy Monitoring Officer role
stricter rules to prevent the misuse of “Cleveland Fire Brigade” branding
But the bigger question is whether public confidence can be restored whilst those responsible for the CIC's collapse are allowed to continue to be employed with Cleveland Fire Authority.
A Warning for Public Services Across Teesside
The collapse of Cleveland Fire Brigade Risk Management CIC is more than a business failure—it is a case study in how public organisations can lose control of commercial ventures when governance is weak.
The public deserved transparency years ago. Instead, they got a CIC that traded on the back of the Cleveland Fire Brigade name—before collapsing under its own mismanagement.
This governance review is said to be the first step toward accountability. But many residents across Teesside will feel that the real reckoning is yet to come, with the Teesside & Durham Post being quietly told prosecutions for Misconduct of the CIC "are not off the table"....
