Applications open for Good Growth funding

Businesses based in Cornwall and the Isles of Scilly should act fast if they want to apply for a share of £47 million of local growth funding.

Applications are now open for the next round of grants available from the Good Growth programme – see details below. This fund is Cornwall and the Isles of Scilly’s (CIOS) share of the UK Shared Prosperity Fund (UKSPF), the successor to EU structural funds.

It comes hot on the heels of the government’s announcement of UKSPF allocations to local authorities for 2025/26 (year four of the scheme). To the best of our knowledge, CIOS is the first area to invite applications for this round of funding. We will look out for other authorities in our region following suit and aim to share details when available.

Good Growth Fund 2025/26 – key details

• Grants are available to support business investments or unblock growth challenges in Cornwall and the Isles of Scilly
• The minimum grant award is £200,000
• The application deadline is 5pm on Monday 27 January 2025
• Projects must be delivered between April 2025 and March 2026

Key sectors targeted for investment are:

• Critical minerals: Harnessing sustainable extraction and processing in Cornwall
• Renewable energy: Innovations in floating offshore wind, deep geothermal and biomethane capture
• Data, space and aerospace: Exploiting our physical, digital, and intellectual assets to address local and global challenges
• Marine: Including emerging FLOW opportunities and decarbonising shipping and associated activity.

Projects that improve job quality, earnings, and business performance in core sectors such as the visitor economy, agrifood and creative industries (with a strong emphasis on digital & tech) will also be considered.

Projects need to align with local and national strategies – as set out here – and “a proactive approach to decarbonisation and inclusive growth should also be an essential component to all projects”.

Background – the UK Shared Prosperity Fund

The UKSPF’s administration will again be delegated to local government – Cornwall Council in the case of the Good Growth programme.

The recent announcements were primarily on the allocation of £902 million announced in the Autumn Budget.

There was also a release of a Technical Note, which includes the mapping of existing interventions into mission-led themes across three priority areas:

• Communities and place
• Support for local business
• People and skills

The government missions are:

• Kickstart economic growth
• Take back our streets
• Make Britain a clean energy superpower
• Breakdown barriers to opportunity
• Build an NHS for the future

Each priority area has sub-themes. For example, support for local business has three sub-themes:

• Advice and support to business
• Enterprise culture and start up support
• Business sites and premises

An update on the Rural England Prosperity Fund will follow in due course.

The allocations of UKSPF to the lead local authorities can be found here. These include Cornwall and Isles of Scilly’s allocation of £47,365,493, comprising capital of funding of £7,824,960 and revenue funding of £39,540,533.

Initial thoughts on the Good Growth Fund 2025/26

I have seen some very positive reactions to the quantum of funding allocated to Cornwall and the Isles of Scilly by people based in the region. It’s one of the largest funding pots for any region in the UK – reflecting Cornwall’s historically high levels of deprivation – and more than 10 times the amount allocated to neighbouring Devon and Torbay.

So there is certainly potential for it to make a positive impact on the local economy, and we hope to see businesses with suitable projects taking advantage of this opportunity.

Tips for businesses interested in applying for Good Growth funding

With a large amount of funding available, businesses in Cornwall and the Isles of Scilly should certainly consider whether this could help them deliver projects that align with national and local strategic priorities.

I always advise against re-organising your business or coming up with a project in order to get grant funding. Grants work best where you already have a project in mind that fits with your business strategy but a funding gap is delaying or stopping you doing this.

As always, these grants come with strings attached. One of the key things to note is that these grants must be spent by March 2026. This means that to submit a successful application by the tight deadline of 27 January 2025, businesses will need to have suitable projects that are ready to go. This includes having any relevant planning consents and match funding in place.

Before spending time on an application, businesses should establish whether they meet the Good Growth Fund’s gateway criteria. Questions or queries should be directed to the Good Growth team.

My PKF Francis Clark colleagues and I are happy to act as a sounding board for those clients looking to discuss a potential project. We have previously helped clients to submit applications to this and other funds and our debt funding experts can also help with discussions on potential match funding. Please speak to your usual PKF Francis Clark contact if you are interested.

Useful links

Full details, including the application form, can be found on this CIOS Good Growth Fund webpage.

There is also an Application Support page which contains links to guidance, additional documents and ‘how to’ videos.

The CIOS Good Growth team are holding a webinar on Thursday 9 January, at 1pm, for anyone interested in finding out more about the Year 4 Strategic Business and Enterprise Investment invitation. They will cover the specific requirements of this new invitation to bid and provide advice on how to complete the application. There will also be an opportunity to ask questions. You can register to attend this online event here.