Helston Coronavirus: Recovery could take five years - the latest statistics

Cornwall's economy may not return to the level it was before coronavirus until at least 2025.

The warning was made after it was revealed that Cornwall had one of the highest take ups of the furlough scheme aimed to protect jobs during lockdown.

Cornwall and Isles of Scilly Local Enterprise Partnership (LEP) chief executive Glenn Caplin gave a briefing on the COVID-19 recovery to a meeting of the LEP board this morning.

Data from June showed that around 84,300 jobs in Cornwall and the Isles of Scilly were being supported by the Government's job retention scheme.

The highest number were in the St Austell and Newquay Parliamentary constituency with 18,300 people furloughed.

Truro and Falmouth had 14,400; North Cornwall 13,600; Camborne and Redruth 13,500; St Ives 12,300 and South East Cornwall had 11,300 people furloughed.

Mr Caplin said that 37% of all eligible jobs were furloughed in Cornwall and the Isles of Scilly, putting it in the top quarter of the country.

In addition, a self-employment income support scheme saw 77% of eligible people signing up – again one of the highest rates in the country and reflecting the high number of self-employed people in Cornwall.

Mr Caplin said that, as well as a large number of people being furloughed there, had also been a rise in the number of people claiming benefits. There had been a 95% rise in Universal Credit claims in Cornwall from March to June.

In March there had been 24,876 claimants in Cornwall but by June that had jumped to 48,458.

Figures show that St Minver, St Kew and Rural Wadebridge had the biggest increase with 252% more UC claimants in that period.

He said:

"Universal Credit claims are increasing and GDP is decreasing. There has also been a significant reliance on the furlough scheme that does create a risk going into the autumn and winter (as it changes)."

However, he also highlighted that Cornwall Council had helped to distribute more than £200million in business grants – one of the highest levels in the country.

That figure broken down to parliamentary constituency indicates where the money went in Cornwall.

Camborne and Redruth – £27m

North Cornwall – £52m

South East Cornwall – £32m

St Austell and Newquay – £42m

St Ives – £55m

Truro and Falmouth – £39m

The various grant payments have also been broken down into the different schemes which were available – the small business grant; retail, hospitality and leisure grant; and discretionary grant.

Camborne and Redruth – 1,796 small business grants (SBG) worth £17.96m; 446 retail, hospitality and leisure grant (RHLG) worth £7.05m; 189 discretionary grants worth £1.89m

North Cornwall – 3,698 SBG £35m; 943 RHLG £15.49m; 183 DG £1.83m

South East Cornwall – 2,192 SBG £21.92m; 576 RHLG £8.79m; 116 DG £1.16m

St Austell and Newquay – 2,579 SBG £25.79m; 810 RHLG £13.365m; 232 DG £2.32m

St Ives – 3,698 SBG £36.98m; 1,068 RHLG £16.155m; 270 DG £1,961,245

Truro and Falmouth – 2,424 SBG £24.24m; 748 RHLG £12.985m; 207 DG £2.07m

Mr Caplin then told the LEP board that analysis of Cornwall's GVA showed that it may not return to the level it was pre-covid until 2025.

He said:

"This was a bespoke piece of work which was done with other south-west councils and looks at economic performance based on GVA.

"This was only looking at Cornwall and not the Isles of Scilly as well and shows that we won't see a return to pre-covid levels of GVA until 2025.

"On a downside interpretation if there are further lockdowns we see a much worse graph that will result in job losses and there is potential for that in the long term."

Mr Caplin said that the LEP had been doing work with a business cell which has been set up to look at what support can be put in place to help businesses.

He said that this was bringing together the business sector with the public sector to work together on the best way forward.

The LEP had also invested into Visit Cornwall, Cornwall Chamber of Commerce and the Cornwall Maritime Network to help provide support for businesses in Cornwall.

Mr Caplin also highlighted the LEP securing £14.3m from the Government's Getting Building Fund.

He said that this would help unlock projects worth £59m and support 1,100 jobs. The projects being supported include the Hall for Cornwall redevelopment in Truro; Truro and Penwith College Digital STEM skills centre in Bodmin; Saputo Dairy UK's creamery expansion at Davidstow; new hangar facilities at Cornwall Airport Newquay; Space AI Institute and receiver factory at Goonhilly; and the Lithium recovery plant at United Downs.

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