A Bradford councillor sentenced to a suspended prison term for business fraud says he will not step down from the Council.

A judge told former Conservative Robert Payne, who now sits as an Independent, he was “clearly not fit” to run his accountancy firm and had breached the trust of a client.

Payne, who has represented Keighley West since May 2008, lost control of the running of his business and failed to pass on a £3,587 tax refund to a client.

Payne, 36, of Fell Lane, Keighley, set up ARL Enterprises (Europe) Ltd in 2007, although he was not a qualified accountant, Bradford Crown Court heard yesterday.

He registered the firm at his address and was sole director.

Prosecutor Peter Hammond said joiner Marc Gill went to Payne for help with his 2007/08 financial affairs.

Payne told him he was owed the money by HM Customs and Excise but Mr Gill was “fobbed off”, despite constant phone calls asking where his refund was.

Mr Hammond said that when Mr Gill rang the tax office direct in February 2009, he was told ARL Enterprises had been paid the £3,587.

Payne told investigators his business was in trouble. He had lost control of it and was “blurring” company and his own finances. The firm was wound up in January this year but Payne still owed a partner £12,000, said Mr Hammond.

Payne’s barrister, David McGonigal, said he accepted that breach of trust was an aggravating feature in the case.

Payne had pleaded guilty early on, he said. He had addiction problems and was attending Alcoholics Anonymous. He was now drink-free.

Judge Goss sentenced Payne to eight weeks’ imprisonment suspended for 12 months, with 100 hours’ unpaid work, and supervision from a probation officer.

He ordered Payne to pay back Mr Gill in full at the rate of £120 a month. Judge Goss barred Payne from working as a company director or manager for three years, saying: “Clearly you were not fit to fulfil that role.”

After the case, Payne initially told the Telegraph & Argus he was stepping down from the Council, but it later emerged that he needed the £13,000-a-year allowance in order to pay back Mr Gill, and he therefore would not be resigning.

He said: “Considering it will cost in excess of £10,000 to hold a by-election, at this time I have decided to remain as an independent councillor.”

Payne quit the Tory group in September when he was charged. His term is due to end next year.

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