Councillors 'kept in the dark' over Shropshire Council-run company

The company, ip&e, set up by Shropshire Council in 2013, was criticised at the council's annual meeting over accountability and transparency.

However, council leader Keith Barrow insisted that the company was providing value for Shropshire's tax payers and would raise money which could be used to provide services for the public.

Councillor Alan Mosley, the leader of Shropshire Council's Labour group, said: "I am concerned that we do not know, we the ordinary members of this council, enough about what is going on.

"We do not know, quite frankly has anyone ever seen the minutes of a board meeting? Does anyone know when board meetings take place?

"We know we have been told we are the shareholders of ip&e but have you ever seen the minutes of the board? I suspect not. Does anyone feel we have the slightest control over what ip&e does? And are we aware of how it is run and how unstable the board of ip&e is?"

Councillor Mosley said that research with Companies House had revealed there have been 25 changes in the composition of the company's board over the past three years. He also questioned why some board members had left their position only to be reappointed months later.

Councillor Roger Evans, leader of the Liberal Democrat group, said he was concerned that its dealings are "opaque" to members of the council.

He said: "I am being told that this company, as it is set up, does not report to Shropshire Council." Councillor Evans said his request for accounts for the company had been rejected by a council officer and that he had to obtain them from Companies House.

He said: "Why can't officers provide the shareholders with accounts? The idea of holding ip&e to account by members is a fallacy."

Mr Barrow showed members a copy of the Shropshire Conservatives' election manifesto which included a pledge to set up the company to "make our funding go further".

He said: "On the charge of not being democratically accountable, we had an election and the people of Shropshire voted as can be seen in this chamber. Setting it up was clearly part of this manifesto."

He added: "This is 100 per cent owned by Shropshire Council and that gives us the opportunity to do things differently – and hopefully make money which will come back into the public purse which we can spend."