Council set to dissolve company designed to support growth of manufacturing sector after £715k investment

Peterborough City Council is set to dissolve its company set up to support the growth of manufacturing companies, and the manufacturing sector, across the city and Cambridgeshire.

The Smart Manufacturing Alliance was set up in October 2021 with £715,000 of funding from the Cambridgeshire and Peterborough Combined Authority (CPCA).

It was a joint venture between Opportunity Peterborough (owned by Peterborough City Council) and the Combined Authority.

The purpose of the joint venture was to support the growth of manufacturing companies, and the manufacturing sector, across Cambridgeshire and Peterborough.

The financial model was set to use the initial investment in decreasing amounts over a 5-year period whilst it built up enough commercial income to cover its costs into the future.

Documents released by the council, however, state that the company has used the initial investment quicker than expected.

The cabinet documents state: “Unfortunately, for a number of reasons including launching during Covid, and international energy and supply chain crises, the manufacturing sector has been under significant pressure since 2021 and it has not been possible to generate the required income levels.

"This has meant that the initial investment has been used at a quicker rate than expected.

"It was clear that without further public sector intervention, the company would run out of funds and have to cease trading. Discussions between the Council and the CPCA regarding either further funding or the transfer of the team to the CPCA Authority were unsuccessful.”

In order to prevent the company becoming insolvent, the council was forced to terminate the company’s service agreement. There is no longer any staff working at the company.

Permission has already been gained from CPCA to wind up the company and is required by Opportunity Peterborough.

During its time in operation, the company has:

- Delivered 31 events and exhibited at a further 10- Recruited 45 business members and 13 affiliate partners- Delivered digital assessments to 75 businesses- Delivered diagnostic assessments to 8 businesses- Created 2 Executive Networking Cohorts- Provided support to over 140 businesses- Provided grant funding of £129,000 and leveraged £197,000 of additional private sector

investment- Produced £750,000 of additional GVA and created 14 jobs

The winding up of the company is set to be confirmed at Peterborough City Council’s cabinet meeting on Monday (July 8, 10am)