IT will be a “travesty” if the Government doesn’t replace an economic programme which has helped to inject more than £200m into Cornwall. That was the message at a Cornwall Council meeting today when the Shared Prosperity Fund, which is due to stop early next year, was discussed.

The Cornwall and Isles of Scilly Shared Prosperity Fund (SPF) has operated in Cornwall since 2022 and has seen an allocation of £187m to Cornwall, which has led to over £85m of additional investment, to boost vital community, public and private sector projects as part of the Cornwall Good Growth Plan.

These include the Truro Lifehouse project at All Saints, Highertown, which opened in September with the help of £615,000 investment through the Good Growth programme. The economic prosperity board agenda states: “More than a physical structure, the Lifehouse has been designed as a welcoming and inclusive space, co-created with the local community to provide vital support, foster meaningful connections and inspire hope.

“This initiative exemplifies how targeted funding can empower local groups to address specific needs and strengthen the social fabric of their communities.”

SPF money helped fill a gap caused by the loss of EU funding following Brexit. However, the Labour government has still not told Cornwall Council what, if any, replacement funding the Duchy will receive when SPF stops in March 2026.

The council’s Liberal Democrat leader Cllr Leigh Frost told a meeting of the Cornwall and Isles of Scilly Economic Prosperity Board today (Thursday, October 16): “Looking ahead, we can’t avoid the reality that SPF programme comes to an end in March. It has already delivered – and continues to deliver – considerable economic benefits to Cornwall and the Isles of Scilly. Through SPF, more than 8,000 organisations have received support, around 1,400 jobs have been created and another 650 safeguarded.

“Over £85m in additional investment has been secured and more than 31,000 people have been trained or gained new skills. These are real, tangible outcomes that have strengthened our economy and our communities, but without a similar form of local growth funding beyond March, those benefits and the support they bring to our residents, communities and businesses are at risk of being lost.”

He added: “We’re still waiting for the Government to tell us what comes after it, because continued investment will be essential if we are to address the ongoing structural challenges facing Cornwall and the Isles of Scilly economy.

“We can be proud of what we have achieved with project delivery, national recognition and the exceptional financial performance, but we must also stay focused on what comes next. Ensuring there is a clear route to continue local growth funding beyond SPF will be critical if we are to maintain this momentum.”

Cllr Frost responded to the news that Wales is to get £547 million from the UK government over three years to boost the economy, with ministers in Cardiff deciding how the money is spent.

“We are also a Celtic nation,” he said. “We may not be recognised as such by the UK government, but we have a lot to offer and a lot of unique opportunities in Cornwall and that’s the message I am making to government consistently,” said Cllr Frost.

“We can tick every single box on their growth agenda – they just need to support us to deliver what are their aims essentially.”

Cllr John Peacock, from the Council of the Isles of Scilly, agreed: “Both councils are one in this. We just need to look at the outcomes and what we have achieved up to now. For that to be lost would be a travesty.”

The Government recently published guidance on the Local Regeneration Fund, which includes changes to be implemented for the Levelling Up Fund, Town Deals and Simplification Pathfinders Pilot Fund. Cornwall Council’s Good Growth team noted: “The simplification, flexibility and extension of time to deliver to March 2028 is both positive and helpful. However, there was no specific mention of whether this applies to SPF and the Good Growth Team sought urgent clarification”.

Cllr Frost also wrote to the Prime Minister in June outlining concern about the future of local growth funding for Cornwall, given no specific mention and a funding focus on mayoral city regions from March 2026. The letter clearly outlines funding momentum being lost in Cornwall, with impacts on productivity, further deprivation and the ability to deliver the Government’s growth agenda through Cornwall’s distinctive sectors such as renewable energy, critical minerals, marine and defence capabilities.

The Government has still not given a detailed Cornwall-specific response

Fears about the loss of Shared Prosperity Fund allocation comes after Cornwall lost out in the Government’s new £5bn Pride in Place strategy. It will see £2m distributed over each of the next ten years to 339 places across the UK, but nowhere in Kernow.