An entrepreneur who was being chased for £8.4 million worth of public skills funding following the collapse of his training provider has reached a secret settlement with creditors.
GB Training (UK) Ltd, run by West Midlands businessman Lawrence Barton (pictured), has been subject to multiple investigations since it closed in 2020 amid accusations of funding overclaims.
A report by liquidator Kevin Mawer, published by Companies House, revealed the Department for Education’s funding agency was seeking £4.7 million after it uncovered alleged cases of taxi drivers – who were either not employed or self-employed – on GB Training’s books listed as apprentices.
The West Midlands Combined Authority was also claiming over £1 million after it allegedly found “ineligible” funding claims for learners who said they did not undertake the courses referred to, while North East Surrey College of Technology (NESCOT), which used GB Training as a subcontractor, was seeking more than £2.6 million.
Mawer also delved into intercompany transactions and found £1.7 million had been transferred to companies controlled by Barton or members of his family, including a nightclub, four days after the firm decided to go into liquidation.
A settlement has now been reached between the parties, according to a joint statement from Barton and Mawer which said a “distribution to creditors” will be made but the terms “will remain confidential”.
Barton said he was “happy a line has been drawn under it with all the parties involved” and added that he “must stress” that the allegations of funding overclaims “were never proven and the terms of the settlement reached in no way represents an acceptance of any culpability or guilt on this matter”.
“I remain concerned about the conduct of the investigation, the devastating impact it had on the company which I had worked more than 20 years to create and the loss of jobs and services to learners that ensued,” Barton added.
FE Week requested an interview with Barton to address the specific allegations made in the liquidators’ report, but he declined.
Mawer said: “I am pleased to have reached an agreement which will result in creditors recovering some of their claims.”
Barton is now the festival director of Birmingham Pride and has held roles including leadership commissioner for the West Midlands Combined Authority and board director of Birmingham Southside Business Improvement District, a community regeneration initiative.
He was appointed to be a deputy lieutenant of the West Midlands in March 2020.
GB Training traded for 20 years and trained thousands of apprentices and adult learners until its closure in 2020. Around 70 jobs were lost.
Barton said: “I’m now looking forward to continuing my community and business activities and to making a success of the new venues re-opening next month and continuing to drive forward the Birmingham nighttime economy.”
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