THE Liberal Democrat leader of Cornwall Council has said the Duchy is at a financial crossroads following the ending of an important pot of Government funding.

However, Cllr Leigh Frost said at a meeting of the Cornwall Growth Board this week that the council is adapting to the loss of the Shared Prosperity Fund, which to a lesser degree replaced European Objective 1 funding that was lost following Brexit.

The council has instigated a new £52.5m Cornwall Evergreen Regeneration Fund (CERF), which will invest in local business and economic opportunities by way of repayable grants. The focus is likely to be on town and village centres and bringing new life to empty buildings.

Cllr Frost told Tuesday’s meeting: “We find ourselves at something of a crossroads. The reason is simple – it’s the end of the UK Shared Prosperity Fund. This marks a real turning point for Cornwall.

“For nearly a decade our economy has benefited from substantial public grant funding of around £91m a year. This was delivered through various European programmes and, more recently, through Town Deals, Levelling Up funding and the Shared Prosperity Fund. That has now gone.

“While the £30m Kernow Industrial Growth Fund is very welcome, we need to be honest about the position we are now in.”

He added the level of demand within Cornwall for a slice of that £30m growth fund for sectors such as critical minerals, renewable energy and space and marine innovation has gone way beyond the financial limit with expressions of interest at around the £65m mark.

“The level of public grant funding available for Cornwall in the years ahead is going to be much lower than we have been used to. That means we have to adapt and adapt quickly. If Cornwall wants to attract investment, we need to be focused, coherent and selective. That means Cornwall speaking with one voice for the benefit of one and all.”

The Cornwall Growth Board met to approve investment propositions, as suggested by Cornwall Council’s private sector partnership, the Cornwall and Isles of Scilly Economic Forum, and to agree the timeline and details of the new Evergreen fund.

Members heard that Cornwall Council has established the £52.5m Cornwall Evergreen Regeneration Fund through its 2026/27 to 2028/29 budget process “with a clear commitment to place-based growth and regeneration”.

The CERF is expected to start investing from April 1, 2027.

Cllr Tim Dwelly – the Independent cabinet member for economic regeneration and investment – explained the thinking behind the funding.

“The whole point of Evergreen is unlike other forms of capital investment, we want money to come back to this council from the investments we make. We will choose very carefully where and how we make those investments.

“We will also select recipients who would otherwise not be doing something with that project – in other words, we will be making a difference to something that wasn’t going to happen.”

He said the people receiving the grants will be legally obliged to repay the money over time.

“We are anticipating quite a heavy focus on town and village centres, and empty and eyesore buildings being brought back into productive use. So not only would we get a grant repaid to us, we would also be bringing business rates and council tax into this council,” added Cllr Dwelly.

The meeting heard that Cornwall needs £100m of investment a year in order to unlock the ambitions outlined in the Cornwall Good Growth Plan to deliver a resilient economy.

As well as the new Evergreen fund, Kernow Industrial Growth Fund and existing Enterprise Zone Growth Fund, up to £20m in Local Innovation Partnership funding for the region is available, with the ability to access £50m funding support made available for critical mineral projects in the UK, as part of the UK Critical Minerals Strategy, as well as sector specific funding streams such as the £132m Fishing and Coastal Growth Fund.

In order to best position Cornwall to unlock investment, including through government’s investment arms (British Business Bank, Great British Energy, Innovate UK and the National Wealth Fund), Cornwall and Isles of Scilly Economic Forum has put forward a prioritised pipeline of propositions that can be used by Cornish stakeholders in conversations with central government and investors.