Business leaders call for more support

Business leaders across Cornwall and the Isles of Scilly are
backing calls for more grant support from Government after the latest
round of funding for pandemic-hit local businesses was over-subscribed
by £14.5 million.

The Cornwall and Isles of Scilly Local Enterprise Partnership has
joined with Cornwall Chamber of Commerce, the Federation of Small
Businesses, Cornwall Manufacturers Group, Visit Cornwall, Cornwall
Marine Network, Cornwall Business Improvement Districts and the Islands’
Partnership on Scilly to send a joint letter to Chancellor Rishi Sunak
asking for more urgent support.

The letter says: “Whilst we have put successive rounds of Covid-19
funding to good use it is clear that, based on demonstrable demand, we
need additional discretionary funding to ensure a strong recovery of our
economy, secure jobs and prevent businesses from closing.”

The business leaders argue that the latest round of discretionary
funding awarded to Cornwall and Scilly does not reflect the area’s
higher prevalence of businesses that fall outside mandatory grant
schemes, nor the importance of the tourism industry, which has been very
badly hit.

And they say there are parts of the UK which have not used their full
allocation of discretionary funding, so the Chancellor would not have
to find new money.

Mark Duddridge, chair of the Cornwall and Isles of Scilly Local
Enterprise Partnership, said: “Thousands of local businesses are facing a
cashflow crisis as a result of the pandemic and can’t get support
because our allocation of discretionary funding doesn’t match the need.
Meanwhile we know that nationally there is discretionary funding sitting
dormant in bank accounts and under-used.

“We’re urging the Chancellor to use that money provide a lifeline to
see our businesses through these dark days and into recovery. And we’ve
told him that with his support we can ensure Cornwall and Scilly are a
model of how England can build back better after coronavirus.”

The letter calls for an additional £20.3 million in discretionary
grant funding to cover current and future demand if lockdown endures, an
extension of the VAT reduction, deferral of tax payments and loan
repayments, more flexibility on business rates, and an extension of the
furlough scheme beyond April 2021.

Cornwall Council, which administers discretionary grants on behalf of
Government, is warning that without extra money it will only be able to
pay businesses around half of what they have asked for.