Cornwall EU Funding

 

Had the United Kingdom remained a member of the European Union, Cornwall would have continued to benefit from approximately £100 million annually in EU grants—a commitment secured for seven years prior to the 2016 referendum.

When first elected in 1997, I was deeply involved in the campaign to secure what was then known as Objective 1 Status for Cornwall and the Isles of Scilly. We had numerous obstacles placed in our way, but we overcame all and won, and justly so. These obstacles were presented at the UK, not the EU level. During the referendum campaign, pro-Brexit leaders like Boris Johnson assured voters that Brexit would not result in a single penny lost.

Regrettably, though unsurprisingly, this promise was never honoured. Under Prime Minister Johnson, Cornwall received £132 million of UK aid over three years, averaging £44 million per year—a stark 56% reduction compared to the EU funding Cornwall would have received. This diminished funding was extended for one additional year at a similar rate by the new Labour government.

While other ad-hoc grants were issued (mostly in the form of pre-election bribes for marginal seats), enabling the Conservatives to claim a higher total figure, the absence of long-term funding commitments has made it significantly harder to allocate resources effectively in Cornwall. Short-term funds usually lead to short-term decision making and chaotic processes, with Cornwall Council and local partners scrambling to establish criteria, solicit expressions of interest, evaluate bids, and oversee project delivery—all within tight deadlines. This approach tends to favour organisations with ready-to-go proposals, side-lining communities and groups that may be more deserving of support.

It is worth remembering why Cornwall was originally granted the highest level of EU regional aid nearly 30 years ago. It’s because Cornwall is one of the poorest regions in Europe and, despite best efforts and some important gains, has barely improved its position.

Looking ahead, the Labour government has not yet pledged further funding for Cornwall beyond 2025. Current indications suggest that future funding will be channelled through the ‘National Wealth Fund,’ prioritising industrial heartlands and large-scale projects like green hydrogen, green steel, carbon capture, and port development. This raises serious concerns that Cornwall may be overlooked—a precarious position created by the Conservative government’s original failure to match the EU’s long-term funding commitments.