Council convener resigns after ban over unpaid tax

The convener of Shetland Islands Council has resigned two weeks after being banned as a company director over unpaid tax.

The majority of the local authority's 23 councillors signed a notice of motion calling on Andrea Manson to consider her position.

Her jointly-owned pub company, Mid Brae Inn Limited, owed HM Revenue and Customs (HMRC) at least £178,860 when it went into liquidation in May 2023.

The resignation comes a day after Manson told the BBC she was prepared to "fight on" in her role. A council spokesperson said the appointment of her successor would be discussed at a meeting on 25 March.

On Tuesday, Manson told BBC Radio Shetland she hoped to "fight on" and "clear her name".

The former convener said she had been "complacent" but insisted her business had been a casualty of the Covid pandemic.

She said the company had offered to pay "a significant amount" of the money it owed.

It followed a call on Monday from Shetland Central councillor Ian Scott for her to resign.

He said the controversy had significantly dented the reputation of the local authority.

By Wednesday afternoon, a majority of councillors had signed a notice of motion calling on her to consider her position.

In May 2023, Mid Brae Inn Limited owed HMRC £110,675 in VAT and surcharges and £59,227 in unpaid PAYE and National Insurance contributions dating back to 2018-19.

The Insolvency Service's chief investigator Neil North said Manson had failed to ensure her company met its tax obligations.

A spokesperson for the local authority said a report would be prepared for the appointment of a successor.

Manson became the convener in May 2022. She will continue as an independent councillor for Shetland North.