Council’s Cabinet makes a decision on the future of its company ip&e Limited

Shropshire Council’s Cabinet has today (Wednesday 17 February 2016) made a decision to bring the services currently provided by ip&e Limited back in-house following an internal review of the company’s performance.

It will mean that the company, which was set up in May 2012 by the council to win new business through providing services to other public and private sector organisations, will cease to operate after 31 March 2016. In the meantime, the company will continue to trade as normal.

The teams currently within ip&e deliver business design and programme management, communications and marketing, public health, business support and regulatory services, and education support services back to the council and other organisations.

However, the review has shown that the company isn’t making the profit it was expected to, mainly due to large overheads and a duplication of work.

Although staff will transfer back to the council, the contracts which are currently being delivered by the teams will continue, bringing money back into the council without the extra cost.

Malcolm Pate, Shropshire Council’s Leader, said:

“ip&e has had a number of notable successes; however, we need to ensure we get best value for money for our council tax payers.

“Staff will transfer back to the council and services will now once again be delivered by the council in a much more efficient way.”

Clive Wright, Shropshire Council’s chief executive, said:

“When the council created ip&e it went into it open-minded; however, the review has uncovered compelling reasons why the company should not continue.

“Unfortunately, despite everyone’s valued dedication, ip&e just isn’t making the profit it was expected to, or delivering sufficient savings for the council quickly enough.

“One of the reasons for this is the huge overheads placed on the company before it had established trading externally.

“A move back to the council will not mean that trading externally will stop – it will continue, but without the costly overheads and duplication of effort.

“Over the two and half years that ip&e has been in existence we’ve learnt lots of useful things. Also, ip&e staff have played a big part in the council’s developing new commercial culture. But there is a better way of generating income, and we need this to plough back into providing essential council services that are getting increasingly difficult to deliver. We also need to ensure that we get best value for money for our council tax payers.”