CORNWALL’S Labour MPs have said they are delighted that the Government has agreed to continue vital funding for the Duchy to the tune of £47.3-million after its future looked in doubt.

However, they have admitted the Shared Prosperity Fund’s (SPF) continuation beyond 2026 will rest on devolution negotiations.

The county’s Tory head of economy has said the money is merely a “sticking plaster” and says he hopes the funding won’t be used as a bargaining tool when it comes to accepting the government’s preferred devolution deal.

Cornwall and the Isles of Scilly were allocated £137-million worth of SPF by the previous Conservative government for local investment until March 2025 as part of its levelling up policy. Following Brexit, that government pledged to match what Cornwall would have received in EU funding.

The Shared Prosperity Fund of £137-million was promised over three years from 2022. There was some criticism at the time as it was expected that Cornwall would have got around £100-million a year if the UK remained in the EU.

Over 200 organisations have already benefited from SPF investment as part of Cornwall and the Isles of Scilly’s Good Growth programme. However, there has been some uncertainty whether the financial aid would continue, which has led to some political arguments at Cornwall Council.

Cornwall’s four Labour MPs have now released a joint statement welcoming the extension of SPF until at least April 2026. They said: “We are absolutely delighted that the Labour government has announced Cornwall’s portion of the Shared Prosperity Fund for 2025/26 will be £47.3-million, which is an annual increase on the previous three-year settlement. This is a huge boost for Cornwall from the Labour government as it will allow businesses and community groups to know that investment will continue, right across Cornwall to support our economy and local communities.

“Given the massive financial crisis left by the Conservative government there were concerns raised that SPF could not continue at all, let alone at a higher level for Cornwall. But, as a group of four Labour MPs, we extensively lobbied the Treasury and Ministry of Housing, Communities & Local Government to ensure that they understood just how important SPF is in Cornwall and, with this announcement, it looks like our case was appreciated by Government.”

Perran Moon, the MP for Camborne, Redruth and Hayle, said: “It’s worth noting that the Conservative leader of Cornwall Council thought that Cornwall might lose all of its SPF. Indeed, had the Conservatives won the election they would have scrapped SPF altogether to fund their National Service gimmick. We’ve actually got an increase in SPF from this Labour government.”

However, Louis Gardner, Cornwall Council’s Conservative cabinet member for the economy who has overseen the Good Growth programme, has responded that although he welcomes the funding it is merely a “sticking plaster” and has accused the Labour MPs of issuing a “factually incorrect” statement.

He said: “I am disappointed that the MPs have taken what should have been a really positive announcement for Cornwall and turned it into a self-promoting political statement. SPF was introduced by the previous Conservative government to promote communities, support local businesses and encourage those into training who may have not previously had access to it, not to use it as a weapon in the political arena.

“I am afraid some of what has been stated is factually incorrect. Last year Cornwall was awarded £82-million from a total Year 3 SPF pot of £1.5-billion. This was reduced for Year 4 by the current government to £900-million, with both Manchester and West Midlands Mayoral authorities allocated a share for the first time. I was widely quoted in the media a few weeks ago saying that Cornwall’s share, if proportional, should have been £49-million. This still falls far short of the £100-million per annum that politicians from across the political spectrum said Cornwall should have had based on previous European levels.”

The Newquay councillor added: “In its manifesto the Conservative party pledged to continue with SPF for a further three years before then replacing it with another funding mechanism. This government have scrapped it after one year, with no replacement yet on the horizon going against their specific manifesto pledge to end single year funding streams. In addition, Town Deal, Levelling Up and Future High Street Funds have all been ended and have not been replaced. This equates to a £150-million loss in structural funds for Cornwall.”

Despite his criticism of the Labour government, Cllr Gardner was quick to praise Jayne Kirkham, the Labour MP for Truro and Falmouth. He said: “I must single her out for praise for asking multiple questions in the House about SPF and for writing to the Minister on multiple occasions to lobby, alongside Cornwall Council, for a continuation in funding; a great example of councillors and an MP working together.”

The portfolio holder for the economy added: “I welcome this allocation of funding for Cornwall, it will make a real difference to businesses and organisations right across the Duchy. However, it is a sticking plaster, nothing more, and we now face two funding precipices instead of one. The team at Cornwall Council will be simultaneously running two funding pots, both with have cliff edge endings to them, the first in March 2025 and the second in March 2026.”

When Mr Moon was asked if there was an assurance from the Labour government that SPF funding – or a replacement – will continue, he said: “No – post April 2026 it’s all tied into the multi-year devolution settlement. This one-year arrangement is simply a stopgap to create the space for devolution negotiations.”

Cllr Gardner responded to this said: “Devolution is a different issue which has of course now become entwined with structural funding. I do of course hope the approach from government won’t be ‘take this devo deal or else you wont get any funding for Cornwall’.”