‘Dangerous’ loss of flights to London will damage Cornish economy
One of Cornwall’s most powerful business leaders has spoken against a Cornwall Council proposal to scrap the publicly subsidised air route to London
Last updated 12th Feb 2026
One of Cornwall’s most powerful business leaders has spoken against a Cornwall Council proposal to scrap the publicly subsidised air route from Newquay airport to London.
The council’s cabinet is due to drop the Public Service Obligation (PSO) service at a meeting tomorrow (Friday, February 13) in a bid to save millions of pounds. The PSO is funded 50:50 by Cornwall Council, which owns Cornwall Airport Newquay, and the Department for Transport (DfT).
The DfT previously contributed 66.7%. Its decision to drop its funding to 50% is putting additional financial pressure on an already cash-strapped Cornwall Council.
The council has revealed that the service will likely require a taxpayer subsidy of between £14 million and £16 million over the next four years if it continues – with Cornish taxpayers paying directly for half of that amount.
The move has come after the council failed to attract tenders during two PSO procurement bids over the past nine months. There is now a push for it to be replaced by a commercial operation, which would be unlikely to run as regularly as the daily PSO flight.
John Brown, CEO Cornwall Chamber of Commerce, has urged caution, saying that reducing London connectivity when Cornwall is competing for national and international investment would be an “act of self-harm”.
He is urging Cornish businesses which are against the loss of the PSO route to write to their councillors, Cornwall’s Liberal Democrat / Independent cabinet and their MPs asking them to press the DfT to reconsider its reduced budgetary support for the PSO.
Mr Brown said: “We understand the financial pressures – two procurement exercises failed to attract compliant tenders, the Department for Transport has cut its contribution from 66.7% to 50% and aviation costs have risen sharply.
“But the Chamber believes this decision carries risks that far outweigh the savings.”
He said that the council’s own cabinet report recognises that Newquay airport contributes an estimated £100m in annual Gross Value Added to the local economy. “The PSO costs the council approximately £1.5m per year. That is a serious return on public investment and one that very few other council spending commitments can match.
“Businesses have consistently made clear that daily flights to and from London are of serious importance to help with talent acquisition, investment opportunities and business growth.”
He added: “What’s more, it’s important to recognise that Cornwall Council retains 100% of business rates collected in the Duchy, forecast at around £270m.
“The council’s share of the funding gap between its affordability cap and the market price is around £250k-£500k per year, less than 0.2% of annual business rates income. When businesses are facing rate increases of around 10% in April, it is reasonable to ask whether a fraction of what is already collected could sustain a service that delivers on a key business priority – connectivity.”
Mr Brown told the business community: “Cornwall’s transport network cannot absorb this loss. Rail to London is chronically under-invested, expensive and frequently exceeds five hours. Recent severe weather has shown how quickly Cornwall can be cut off entirely.
“The council’s own report admits commercial operators ‘may not provide the same level of winter frequency or day-return capability’ and that ‘there is of course the risk that commercial routes and other commercialisation cannot replace the airport losses and the airport becomes unsustainable’.
“Removing another element of our transport network without a proven replacement is dangerous.”
Mr Brown said it was “disappointing” that the DfT is reducing its support at a time when regional connectivity should be a national priority.
“Cornwall is spearheading the UK’s future economy. Reducing London connectivity at precisely the moment Cornwall is competing for national and international investment would be a further act of self-harm.”