Cornwall devolution deal in ‘final stages’ after Budget, MPs say

The word “Cornwall” made it into the Chancellor’s Budget speech again. That’s now two years running, and three of the county’s MPs say it could mean a lot.

On Wednesday (28 October), Chancellor John Healey told the Commons that Cornwall is in the “final stages” of a devolution deal of its own. The deal would include making it a Single Strategic Authority. He also said £121 million of incubator growth funding would go to areas that include Cornwall.

Three Cornish MPs, Jayne Kirkham, Noah Law and Anna Gelderd, have welcomed the news in a joint statement.

What the Good Growth Funding is

The money is called Good Growth Funding. It was drawn up with No. 10 North and is part of a first funding package worth £285 million. That package includes Cornwall’s incubation funding for the next financial year, with the stated aim to “drive good growth in every postcode.”

The release says this means local leaders would no longer have to go to the Treasury for approval on every project.

Areas could spend it on high street regeneration, or on industrial growth in sectors where Cornwall has a strong competitive advantage.

Cornwall’s share comes on top of the £30 million Kernow Industrial Growth Fund announced in last year’s Budget.

What else was in the Budget

The MPs also pointed to several national measures:

• £100 energy payments this winter for households in Council Tax bands A to D
• Wider small business rates relief for retail, hospitality and leisure businesses
• Longer parental leave, so parents can spend more time with their families
• Fuel duty and red diesel relief extended until July next year

According to the MPs’ statement, the parental leave change will benefit 372,000 self-employed fathers, partners and adopters in the South West (2023/24 figures). It also says 56% of retail, hospitality and leisure properties in the region will pay no business rates at all.

What the MPs said

Jayne Kirkham MP said: “This is good news for Cornwall. We now have the power to invest in our own growth and access future lots of funding. This is the start of the next stage of our devolution journey. I’m pleased the Prime Minister and Chancellor have recognised the potential of Cornwall. As well as giving us all some breathing space.”

Noah Law MP described it as “a real vote of confidence of our Labour Government in Cornwall’s economic potential.”

“But, with that investment comes a responsibility to get this right and I look forward to seeing how we can further mature the approach taken with the Kernow Industrial Growth Fund,” he said.

“This funding represents the start of something great, our own Cornish capital to invest and recoup for use in future projects. The old model of funding is over and it’s time for Cornwall to take charge of its own destiny.”

Anna Gelderd MP said the Chancellor had “reinforced this Government’s commitment in Cornwall’s future and our potential.”

“We are in the final stages of a devolution deal for Cornwall, which is supported by Good Growth Funding, and will really benefit our communities,” she said.

“By investing in Cornwall, our area can build industries that will help our young people find more high-quality jobs closer to home. We are setting Cornwall up for success and helping to create a stronger year-round economy.”

The release doesn’t say how much of the £121 million will come to Cornwall, or when the devolution deal will be signed.