CORNWALL could still lose out on £350-million of EU funding for projects to help the county’s economy despite assurances from the Government that key projects supporting economic development across the UK will continue.

On Saturday Chancellor Philip Hammond said thousands of British organisations would be receiving guarantees over EU funding and all structural and investment fund projects, including agri-environmental schemes signed before the Autumn Statement in November would be fully funded.

But in Cornwall, like other areas in the UK, there are many projects which have not yet reached the contract stage but were expected to be included in a funding programme running to 2020.

Cornwall Council is appealing for the Government to honour the funding for all projects in the pipeline over the next three years with or without contribution from the EU.

The council’s cabinet member for economy and culture Cllr Julian German said: ‘Following the Chancellor’s statement on European funding, I estimate that Cornwall and the Isles of Scilly could lose out on £350-million of funding that would have helped our residents and local businesses.

‘The limited guarantee for some schemes leaves Cornwall hundreds of millions of pounds short of what we were promised we would receive by MPs who backed the Brexit campaign. Major funding streams such as contracts for EU structural funds and European Maritime Fisheries projects beginning after the Autumn Statement have no guarantee of continuation at all. This simply isn’t good enough.

‘Cornwall Council is supporting the Local Government Association’s campaign for all EU funds to be honoured. With the continuing reduction in our funding from the Government,  EU funding, or its replacement, is vital to support economic regeneration, helping individuals to gain new skills and businesses to create well paid jobs.’

Mr German said that unlike UK funding streams, EU funding had been allocated according to need.

He said: ‘This is a really important point for government to remember and Cornwall Council will keep advocating for resource which is focussed on closing the economic and skills gap between Cornwall and the rest of the UK.

‘We will work hard with our MPs and partners to try and secure the funding that will otherwise be lost to the residents and businesses of Cornwall. Cornwall Council will also be working closely with government to ensure that as many projects as possible are contracted before the Autumn Statement deadline.’

In terms of head of population Cornwall has received more EU funding than any other part of the country. Mr German said EU money had been vital in funding diversification projects in Cornwall which had enabled it to improve its economy.

Projects like the extension to the Ginsters factory in Callington and Davidstow and Trewithen Dairies and many rural manufacturing processes had been funded by the EU. Workspace and innovation centres and industrial unit projects which were not fully in the system were now very much in danger, he said.

Cornwall councillor for Callington Andrew Long said: ‘This is devastating news but I’m not surprised. The reality of the vote for Cornwall is now becoming clear.

‘I welcome the council’s attempts to limit the damage but this could be very bad news for the people of Cornwall.

‘The potential cuts in the EU money could be devastating for Cornwall in general and the South East in particular. Our region has not fared well in the last two rounds of funding and we have been working hard to promote the Growth Hub to local businesses.

‘The only reason we had access to this funding in the first place was because of the lack of investment from Central Government over the last 30 years. However, the EU funding in the past has been instrumental in creating the universities and two innovation centres that have been incredibly helpful in boosting new businesses. With the Government now reneging on their pre referendum promises to match any lost funding things now look very difficult for the Duchy.’

The Treasury has said it will put in arrangements for assessing whether to guarantee funding for specific structural and investment projects that might be signed after the Autumn Statement but whilst remaining a member of the EU.

It has also said that where UK organisations bid directly to the European Commission on a competitive basis for EU funding projects while we are still a member of the EU, for example universities taking part in Horizon 2020, the Treasury would underwrite the payments of such awards, even when the specific projects continue beyond the UK’s departure from the EU.

British businesses and universities are being urged by the Government to continue to bid for competitive EU funds while the UK remains a member of the EU.