Jobs and support services at risk as ‘unviable’ company owned by our councils closes

More than 130 jobs are at risk at a company owned by local councils in Cornwall and Devon after it was declared ‘unviable’. The CSW Group, an organization owned by Cornwall Council, Plymouth City Council, Devon County Council and Torbay Council, could see all 130 staff lose their jobs after the four local authorities decided to ax the job altogether .

CSW Group, formerly Cornwall and Devon Careers Ltd, Connexions then Careers South West Ltd, is wholly owned by the four local councils to provide training and career opportunities to young people and businesses across the region. The company is based at Poseidon House in Plymouth and has supported tens of thousands of people of all ages across the two counties, with links to many large local organisations.

However, the four local authorities have now announced that CSW Group, which was first launched almost 30 years ago, is no longer a viable business. A look at Companies House reveals a pensions black hole of £14.4m in 2022. A note from accountants Bishop Fleming said there is a future pension scheme net asset of £4.6m for 2023 , but was not recognized in the financial statement. For 2023, the accounts show a profit of £1.8m.

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The joint statement said: “Following a review of their CSW Group ownership agreement, its four owners (Cornwall Council, Devon County Council, Plymouth City Council and Torbay Council) have reluctantly concluded that its funding and operational position have changed so that the company is no longer viable.

“As such, the cabinets of each authority agreed that a new approach needed to be taken which would ensure minimal impact on young people using the education and employment support services provided by CSW. All landlord authorities are also committed to retaining significant expertise, which for Devon, Plymouth and Torbay means reintegrating CSW staff ‘in-house’, Cornwall will adopt the same approach and/or commission an expert provider to take over. “

On the job losses the decision could lead to, the statement added: “While this is clearly a difficult time of change for staff, owners and customers, the four local authorities believe now is the right time to make this change if the expertise and high-quality service that has benefited the peninsula for the past 30 years is to be preserved.

“The owners and management will look to work closely to support wider staff and customers who do not need to be part of the transfer process, helping them find new opportunities on the peninsula where appropriate.