Cornish businesses are losing out on millions of pounds from the Government's business grant fund set up to help them navigate the coronavirus pandemic, the body representing the maritime sector said.
Maritime 海角视频 said the Grant Fund, set up to support small and micro businesses, allocated £281million to Cornwall Council to keep businesses afloat during the pandemic and lockdown.
But only £235million was given out - a £46million “underspend” - as some businesses struggled to apply or were ineligible for funding, Maritime 海角视频 said.
To address this, a £13million discretionary fund was set up so Cornwall Council could give money without following the strict Government criteria. Demand outstripped supply as £27million was requested from local Cornish businesses.
Maritime 海角视频, the umbrella body for the maritime sector including leisure, is now calling for the original underspend to be re-allocated to the discretionary fund.
Harry Theochari, Maritime 海角视频 chair, has written to the Government asking for further allocation of cash to the Discretionary Fund. The organisation said it is vital as only 13% of Cornish businesses - 99.5% of which are SMEs - are “very confident” about the future. This figure is only half the national average.
Maritime businesses, such as sailing operators, ferries and surf instructors, have been particularly hard hit as tourism has nosedived, Maritime 海角视频 said, and stressed the Government “cannot allow the 海角视频's poorest county to fall further behind”. It is demanding the Government re-allocate money that was earmarked for Cornish businesses to the Discretionary Fund.
In his letter, Mr Theochari stressed that businesses have welcomed the support from Government in response to the COVID-19 pandemic, particularly in the form of direct grants through the Small Business Grant Fund and the Discretionary Grants Fund, deployed via local authorities.
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He wrote: “In many cases these grants have been the difference between a business surviving this extraordinary crisis or not, so we are very well aware of how important and valuable this assistance has been to maritime businesses.”
But with these schemes ending on August 28, and unspent grant funds required to be returned to Government, he said it is urgent that as many businesses which might be eligible for support receive it.
Addressing his letter to Business Minister Alok Sharma, Mr Theochari wrote: “Whilst we appreciate these schemes cannot continue indefinitely, and the strenuous efforts that have been made by local authorities to make contact with as many eligible businesses as possible, we firmly believe there is a strong case for an urgent intervention to bring some additional scope for grant delivery in respect of the Discretionary Grants Fund.”
He said intervention is crucial to “save businesses, protect jobs and livelihoods and prevent further strain on the public finances which would inevitably result from the significant levels of unemployment that would inevitably occur as a result of action not being taken”.
He said Cornwall has a unique marine and maritime economy, with the 99.5% of businesses in the region classed as small or micro.
He said marine businesses eligible for grant support included those based at marinas, involved in passenger boats or those offering a retail facility as part of their business, and also marine businesses based at ports and harbours.
But he stressed Cornwall Council had to prioritise other areas of the economy due to a significant shortfall in funding allocation and, as a result, a considerable number of maritime-related businesses fell between the scope of the support available.
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Mr Theochari, however, insisted there are existing resources that sit with Cornwall Council and can be deployed to “even greater effect”.
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“It is our understanding that with the Discretionary Fund capped at 5% enhancement of the round one funding, some £13million was available but that demand from eligible businesses in Cornwall far exceeded this with the potential for £27million being requested,” he said. “These businesses should be supported if possible, not least as many are focused on leisure and tourism, including leisure marine, which is currently faced with the highly damaging scenario of a ‘three winters impact’ on their trade.”
Supporting Mr Theochari’s comments, Keith Leeves, proprietor of AK Wildlife Cruises, in Falmouth, said: “Any financial assistance through the support of a £10,000 grant would remove a huge amount of worry as to whether my business will survive this year financially.
“Tourism is such a vital component to Cornwall but this year the ‘economic season’ is regrettably, but understandably, short.
“Respecting two metre social distancing aboard my vessel, Free Spirit, means income is around one-third of normal, but with no income possible between February and July. If we gained a discretionary rate grant it would hopefully allow us to survive through this winter and into 2021.”
Richard Lacey, managing director of surf coaching firm Wave Retreat, in North Cornwall, said: “Gaining a discretionary business rate grant would help ensure we survive the winter.”