Laura Sharman 18 February 2016

Shropshire Council to close its trading company

Shropshire Council has decided to close its company ip&e Limited after it failed to make enough profit.

The company was set up in 2012 by the council to win provide services to other public and private organisations. However, a review of the company’s performance has revealed it wasn’t making the expected profits mainly due to large overheads and a duplication of work.

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.’

Ip&e Limited will cease to operate from 31 March 2016 and staff will be transferred back to the council.

Mr Wright added: ‘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.’

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