Regenerating Cornwall's Rural Economy

7 Questions

What was the primary source of investment in Cornwall's economy between 2000 and 2010?

Public sector investment

What has been the main source of investment in Cornwall's economy since 2010?

Private sector investment

What challenges does the rural economy in Cornwall face?

Low average incomes and lack of private investment

What was the average full-time earnings in Cornwall in 2011?

£25,155 per year

What percentage of Cornwall's working-age population earns less than the living wage?

20%

What was Objective One funding designed to do?

Raise the incomes of rural areas

What was the impact of Objective One funding on the Cornish economy?

It grew faster than the UK average until 2005

Study Notes

Challenges and Successes in Regenerating Cornwall's Rural Economy

Cornwall's economy grew faster than the UK average between 2000 and 2010, thanks to sustained investment, primarily from the public sector.
However, since 2010, funding has been contested, and the private sector is now relied upon for additional investment.
Regeneration is harder in rural areas, and the rural economy faces major challenges due to low average incomes and a lack of private investment.
Cornwall had England's lowest full-time average earnings in 2011, at just £25,155 per year (77% of the UK average), and the real average is likely even lower when part-time workers are included.
20% of Cornwall's working-age population earns less than the living wage (£7.45 per hour in 2015).
Prior to 2010, a lot of public-sector investment was put into regenerating Cornwall, using grants from local and national government and the EU, under a funding model known as Objective One.
Objective One was a type of convergence funding, designed to raise the incomes of rural areas by matching funding raised by individual business people.
New potential businesses could approach funding bodies, such as local councils, and the funding model aimed to reduce the risks faced by new businesses.
Objective One backed 580 projects in Cornwall with £230 million by 2007, and the Cornish economy grew faster than the UK average until 2005, with the fastest growth rate of any EU region.
One farm shop used the funding model described, raising £20,000, which was matched by the council, then the South West Regional Development Agency, and finally the EU Objective One funding, creating the necessary £320,000 for the business to start.
Ten years later, the farm shop's annual turnover was £700,000, and it employed 20 people.
The lack of rural investment leads to a lack of opportunity and high-income employment in Cornwall, causing a "brain drain" as young, well-qualified residents are forced to leave and find work elsewhere.