THE Government has asked for any unused business grant funding back from local authorities – and Cornwall Council has described it as a ’kick in the teeth’ for those businesses that still haven’t been able to access any support.

During the lockdown, the local authority gave out more than £233m in emergency grant money to more than 20,500 eligible small businesses under the Government’s Business Support Grant scheme.

The discretionary grant funding, given to Cornwall Council for businesses that fell outside the criteria of the original schemes - was capped at a certain percent of this total at £13.5million – an amount the Council said wasn’t enough.

The Council says that more than 3,000 Cornish businesses have been unable to access any kind of coronavirus support.

But Cornwall Council was notified yesterday by the Secretary of State for Business Alok Sharma that all business support government grant schemes will close on August 28, with any unused funding going back to the government.

’The Council, backed by business leaders across Cornwall, has consistently called on government to increase funding for the discretionary business support scheme,’ said a spoksperson.

’This latest announcement means that those pleas have fallen on deaf ears.’

Tim Dwelly, Cornwall Council portfolio holder for culture, economy and planning said: ’I’m deeply disappointed by this announcement. It’s a real kick in the teeth for Cornish businesses.

’We recognise that the government’s funding packages have provided a lifeline to many businesses, but there simply wasn’t enough money made available in the first place to all those who needed it. To put it another way, despite what the government has claimed, this isn’t about everyone receiving their slice of the cake, it’s that the cake was never big enough.

’We need up to £27m to be able to support over 3,000 businesses, and we’re holding around £37m in ring-fenced funding from the original grants scheme that the government won’t allow us to use unless the businesses that need it meet their original criteria.

’These are otherwise healthy and thriving small and micro businesses that make an incredibly valuable contribution to the Cornish economy and they should not face the prospect of bankruptcy or closure just because they fall through the gaps of funding criteria.’

’If the government allowed us to use that money, we could help those businesses protect jobs, and protect livelihoods,’ he continued.

’I call on Mr Sharma and Mr Sunak to reconsider their decision and provide our businesses with the help they so desperately need.’