Shropshire Council launches review of ip&e as opposition brands venture 'abysmal' and 'not fit for purpose'

The independent review will be confirmed by acting leader Councillor Steve Charmley at a full meeting of the council on Thursday.

It comes after it emerged there have been 30 changes to the company's board of directors since it was set up three-and-a-half years ago. The review and turnover of directors came to light after a written question from Councillor Alan Mosley, leader of the council's Labour group. He today described ip&e's performance as "abysmal".

It has also been revealed that the investigation into a breach of the code of conduct by former council leader and ip&e director Keith Barrow has so far cost Shropshire Council £9,782.80 – excluding VAT. Mr Barrow was found to have breached the council code of conduct by not declaring a business interest while sitting as chairman of ip&e.

Councillor Mosley said: "It is alarming to find the enormous turnover of directors with some 13 resignations and some 30 changes in total during its existence. One director seems to have been appointed and terminated on the same day while a number have served, resigned, been reappointed and again resigned. It is clear that the governance of ip&e is not fit for purpose, its performance as a business is abysmal and it is clearly not providing the efficiencies promised. All in all it is failing and I am pleased that a review is planned."

In response to the question, Councillor Charmley said: "Governance arrangements in ip&e Limited are set out in the annual business plan approved by cabinet each year. While these are in the early stages of being adopted, an independent review of these arrangements has been planned."

Ip&e's accounts ending March 31 showed that the private company, set up by the council to sell its services to outside bodies, achieved revenue of £1.162 million, and a profit of £28,029. Sales to Shropshire Council itself were £1.145 million, with sales to non-council organisations at just £16,617.