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Business leaders back calls for more Government grant 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 £14.5m.
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 £20.3m 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 because the latest discretionary funding round was over-subscribed by £14.5m.