City council looks at future role of business development company Opportunity Peterborough

Members of Peterborough City Council Shareholders Sub-Committee have been asked to consider the post-Covid benefit of the private, not-for-profit company.
At the committee’s online meeting this week (September 14), Steve Cox, Executive Director for Place and Economy said: “Opportunity Peterborough (OP) is the city’s private, not-for-profit economic development company.
“The financial year 2020/21 holds many challenges and some opportunities as we come out of lockdown and Covid-19 restrictions.

“The economic impact of this is something that we’re aware of and a strong economic function will continue to be important for the city of Peterborough as we go through a recovery process.

“That, of course, is one of the fundamental underpinnings of what OP is doing, taking fully into account the importance of what job growth and getting people into work can do in terms of a preventative agenda – and we know that people in work reduces their dependency, and delivers a better health outcome.

“So, ensuring that we have a strong economic function in the city, helping people to get into work and creating jobs is an important part of the future of Peterborough.

“The question is therefore what role can OP continue to play in that future?

“I believe the report before members sets out the successes and track-record of OP in the recent period and that we should continue with that support”.

Tom Hennessy, Chief Executive of OP added: “OP supports a wide range of stakeholders to achieve their objectives including Peterborough City Council, the Cambridgeshire and Peterborough Combined Authority, the Department for International Trade, the Careers Enterprise Company, South Holland District Council, schools and colleges across Peterborough and Cambridgeshire, and businesses seeking support to grow as well as those seeking a suitable location for expansion or relocation.

“OP has received a grant of £100,000 from Peterborough City Council for the last four years, as well as £40,000 for the provision of services related to strategic funding, and has successfully secured substantial grant funding from European and national sources to deliver specific programmes.

“In a post-COVID economic environment the company’s long-term security can be realised through being part of a consortium that wins the Cambridgeshire and Peterborough Combined Authority’s Growth Service contract.

“This is a 3-year contract for the provision of economic development and skills support services across the Cambridgeshire and Peterborough area worth £32m, replacing a number of OP’s existing contracts.

“The 2020/21 Business Plan is based on the successful outcome of this bid and securing the 3-year contract.

“Our optimism is based on the success of our previous work and the value offer that OP provides to Peterborough and beyond”.

However, Cllr David Seaton said: “When I look at this report under ‘Financial Implications’ it basically says the recommendation sought from this committee is to continue to fund the activities of OP and its functions.

“We’ve had discussions in the past about OP becoming self-sufficient and I’m very supportive of OP as we now work towards the 2020/21 budget.”

“But I’m a little confused by this report where in one place it says we’ve already agreed to give OP the money for next year, yet at the top of the report under ‘Recommendations’ there’s no mention of that – and I would like that explained to me.”

Tom Hennessey replied: “My apologies for any confusion Cllr Seaton; perhaps it’s been poorly worded and is something I can look to improve upon in future reports.

“I was trying to put over to the committee the current value that’s received by the council from OP.

“That is something to consider when looking at future budgetary decisions, rather than any decision to be taken within this committee today”.

Chairman, Cllr Wayne Fitzgerald added: “I think the job of this committee is to add something to that recommendation for future funding if that is the way the council wants to go.

“It’s ambiguous enough to say that we could’ve taken it as read that we consider the benefits of OP to the city, and the business plan is therefore simply stating a line of funding.

“However, from our point of view, the council, the cabinet need to take a formal decision to continue to support OP in the way that we’ve done in the past, because the council, the cabinet – we must decide what we want in terms of economic input and function from OP… or indeed, perhaps from something else”.

Steve Cox added: “I think this report is far more about putting to the members what OP has achieved up till now, rather than asking for any definitive decision on future or continued funding at this stage.”

The members approved the report and the achievements of OP up to now, with the recommendation to take the decision to the cabinet to decide on any future funding.

OP was formed in 2005, as an Urban Regeneration Company but in 2010/11, with the dissolution of two of its shareholders, the East of England Development Agency and English Partnerships, it was reconstituted as an economic development company under the sole ownership of Peterborough City Council.

OP’s mission is to support economic growth across the Greater Peterborough area, improving prosperity, job opportunities, and life chances for those who live and work in the city by engaging with local companies to support growth and development, by marketing Peterborough to attract new businesses, by working with partners at a strategic level to create an enabling environment, and by playing a leading role in the city’s skills agenda to ensure the current and future talent pool have the skills they need to drive the region forward.

The next meeting of the Shareholders Sub-Committee will be 9 November 2020.