Cornwall's beauty hides rural poverty

Cornwall had been expecting to win millions of pounds more in the next round of European funding.

But now it is feared that could all change - with Cornwall losing out to other parts of the country.

The concerns stem from the expansion of the European Union.

OBJECTIVE ONE March 1999, Cornwall & Scilly designated Region's prosperity must be below 75% of the European average �300m available, but it has to be matched with money from public or private sector

Many of the new countries are extremely poor, but that means that in future, the pot of Objective One money will be spread more thinly.

The government thinks the UK will be worse off, so it is proposing a new system - one in which it decides where the share of the funds should be spent.

Cornwall believes this would mean the money being targeted elsewhere - in political hotspots.

Robin Teverson, of Finance Cornwall, which helps with match funding, said: "Whitehall in the past has always been in charge of regional funding, but where has it gone?

"It's gone to Scotland, to Wales and the north, and here in Cornwall where ministers maybe came for their holidays, and saw a beautiful environment, they did not see the rural poverty and the declining industries.

"We won't get the money."

The government has put out a consultation document on its plans and has denied Cornwall will lose out.

It said it would invest more money in the regions and that everyone will benefit.