The future of vital regeneration work in Cornwall has been thrown into doubt, according to a report in Western Morning News.
Projects worth millions of pounds in the south west face delay or being axed altogether, as the Government looks to raid the region’s coffers in an effort to bail out the ailing housing market. Among the projects in Cornwall seeking SWRDA funding are the Combined Universities, Newquay Airport and the Wave Hub.
The report says that The South West Regional Development Agency (SWRDA) could have to come up with as much as £20 million towards the cost of the Government’s new national £300 million HomeBuy Direct scheme to support first-time home buyers.
And there are also fears that SWRDA will not be able to meet its commitment to match-funding the £445 million Convergence Programme.
In a letter to the business community, handed to the newspaper, SWRDA chief executive Jane Henderson states: “As you may have heard, ministers have decided that the new £300 million HomeBuy Direct scheme to support first-time home buyers should be funded through a partial re-allocation of existing RDA budgets.
“On current projections this re-allocation will largely affect RDA expenditure in 2010/11, but it will be hard to avoid some immediate impacts on the investment plans of local partners as reductions in future funding mean we will be able to give fewer commitments now.”
Henderson stressed that no decision had been taken yet regarding specific investments, but all options will be looked at.