Peterborough City Council is set to dissolve the Smart Manufacturing Alliance, a company established in October 2021. The alliance received funding worth  £715,000 from the Cambridgeshire and Peterborough Combined Authority (CPCA) when it was set up. This joint venture between Opportunity Peterborough (owned by the council) and the CPCA aimed to support the growth of manufacturing companies across Cambridgeshire and Peterborough.

The financial model anticipated using the initial investment gradually over five years while building enough commercial income to sustain future operations. However, council documents reveal that the company exhausted the initial investment quicker than planned. The UK’s manufacturing industry has been confronting a wide range of challenges since 2022 – with many still recovering from the drastic impact of COVID-19, especially on supply chain issues and operational setups.

According to the council, multiple factors including launching during Covid, rising international energy and supply chain crises have escalated the pressures on this industry. This has directly impacted income levels, which in turn has depleted the initial investment rather quickly. 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 at this time.

To prevent insolvency, the council terminated the company’s service agreement. There are no longer any staff employed, and permission has been granted to wind up the company. During its operation, the company achieved several milestones, including:

• Delivered 31 events and exhibited at 10 more
• Recruited 45 business members and 13 affiliate partners
• Conducted digital assessments for 75 businesses and diagnostic assessments for 8 businesses
• Created 2 Executive Networking Cohorts
• Supported over 140 businesses
• Provided £129,000 in grant funding and leveraged an additional £197,000 in private sector investment
• Produced £750,000 in additional GVA and created 14 jobs

This dissolution reflects a broader trend of rising insolvency levels across the UK, including numerous councils facing financial distress. The winding up of the company will be confirmed at Peterborough City Council’s cabinet meeting on Monday, July 8 at 10am