Cornwall Council has joined forces with the business community in Cornwall and the Isles of Scilly to press the Government to release extra funding for businesses affected by the Covid-19 pandemic.

The authority has been administering a discretionary grants scheme for companies in the Duchy but says that it does not have enough money to meet the need.

Most of the grants are being paid out to businesses which have so far missed out on funding and are struggling to survive.

Tim Dwelly, Cornwall Council Cabinet member for economy, says that there is demand for £26million but the council has only been provided with £11.5m.

However, the council still has funds left over from a previous grants scheme last year and is asking the government for permission to use some of this to make up the shortfall.

It is not the first time the council has asked to utilise the cash which the Government has indicated will need to be repaid to Whitehall.

Cllr Dwelly said that Cornwall had a larger proportion of businesses which have not qualified for previous grant schemes because they are not on the business rates register.

He said that this is mainly due to them being self-employed businesses and firms which are operated from home.

Cllr Dwelly said:

"We are in a very difficult position where we can only offer half of what the businesses have asked for as we haven't got sufficient funds."

He added:

"These are people who haven't had any money at all – we are asking the Government to release some of the money left in Cornwall rather than take it back to Whitehall."

Cllr Dwelly said that there are around 3,700 businesses which have applied for funding and he wanted to ensure that they could get the full grants that they need.

The grants could be as much as £25,000 which could help small businesses stay afloat during the lockdown.

Cllr Dwelly said that the council had already helped a number of businesses which had fallen through the gaps of previous schemes, but wanted to ensure that all companies which needed financial support could get it.

He said:

"The strength of feeling amongst the business community is strong, we not only have us at Cornwall Council but we have the Local Enterprise Partnership, Visit Cornwall, the Chamber of Commerce and others all signing the letter calling on the Government to rethink this."

However, while there has been a unified front among the council and business community the same cannot be said for political groups at County Hall.

All group leaders at Cornwall Council have signed the letter except for the Conservatives.

Cllr Dwelly said that he was "absolutely astonished" that Conservative group leader Linda Taylor declined to sign the letter.

However, he said that he hoped that she would work with Cornwall's six Conservative MPs to put pressure on the Government to release funding for businesses.

Cllr Taylor defended her decision not to sign the letter saying that there was more financial support coming to Cornwall.

She said:

"The majority of people in Cornwall will realise the huge sums of money that are coming into Cornwall already.

"In my opinion, the discretionary grant funding has not been used wisely and I think we should focus more on the more important things in life."

Asked about the need to help those businesses which had missed out on financial support Cllr Taylor said:

"Some businesses have fallen through the cracks but those businesses are being highlighted to the Government all the time and every week we are seeing new initiatives to help those businesses that have fallen through the cracks."

The Conservative group leader said that issues would continue to be raised with Cornwall's MPs who would take them to the Government if necessary.

She added:

"I believe the government is trying to address these particular issues when you look at other government support out there.

"I may be biased but I don't think any other government would have been as fleet of foot in getting that money out to help businesses."

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