Stefan Rousseau/PA
The Conservative’s promise to match EU funding post-Brexit has been exposed as a ruse after Cornwall Council said it has been left with a “devastating” shortfall that will communities reeling.
The money the council receives from the government to replace EU grants lost following the split with Europe is set to run out in under a month’s time, it has been reported, leaving more than millions of pounds worth of fund applications by communities and businesses unmet.
In 2021, the government confirmed that “total funding through the UK Shared Prosperity Fund (SPF) will at a minimum match the size of EU funds in each nation and in Cornwall each year” and it was estimated that “no worse off” equated to an average of £100 million a year for the Duchy until 2025, with an additional three years to complete the spend of the investment.
In reality, Cornwall has received around £43 million a year.
Speaking to the BBC, Tim Dwelly, Cornwall Council’s shadow cabinet member for economy, described the expected shortfall as “devastating”.
“The applications from Cornish community groups and businesses were for almost three times the amount Cornwall got”, he added.
Independent councillor and former leader of Cornwall Council Julian German said: “It’s very sad that this isn’t happening as it will harm people’s prospects and the vitality of our communities.”
Conservative councillor Linda Taylor, leader of Cornwall Council, said she had written to the government to highlight the importance of an extension to the SPF programme beyond 2025.
A Cornwall Council spokesperson said: “We await confirmation from the government of how and when the next tranche of funding after 2025 will be delivered, and we will continue to push for a fair deal for Cornwall and the Isles of Scilly.”
Councils at large have warned that the risk of financial failure has increased due to the Government’s lack of support in the autumn statement, while others said they may not be able to fulfil their legal duties.
With Levelling Up Secretary Michael Gove due to give evidence to MPs on council finances on Wednesday, two surveys of senior local government figures suggest the sector is on the brink of escalating operational distress.
A survey by the Labour-led Local Government Association (LGA) found one in five council leaders and chief executives believe it is very or fairly likely that their chief finance officer will need to issue a section 114 notice this year or next, in an admission that the annual budget cannot be balanced as required by law.
Half of respondents said they are not confident they will have enough funding to meet their legal duties after no further money was provided by the Chancellor.
This includes statutory services such as social care and support for the homeless.
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