Nearly three-quarters of all businesses in Cornwall only have enough cash reserves to survive for another two or three months if the Coronavirus crisis continues.

The shocking figure was revealed by Cornwall Chamber of Commerce which said that 92 per cent of firms felt that COVID-19 has had a ‘significant impact’ on their business.

Chamber chief executive Kim Conchie has warned that if government support does not help businesses then the future for Cornwall is bleak.

He said: "If the Government money doesn’t get into the hands of businesses very quickly or doesn’t have the desired effect, we will see Cornwall’s business landscape decimated."

A survey undertaken by the Chamber of Commerce, which has had 540 responses, asked businesses how long they could survive on cash reserves if the current restrictions continue – 15 per cent of firms said they could only last a week, 24 per cent said one to four weeks and 32 per cent said two to three months.

The day before the survey was published, it was revealed that Cornwall Council was the best performing authority in the country for getting government business grants out to local companies, paying out more than £116 million to 10,000 businesses.

Mr Conchie said that, while the council should be congratulated for its efforts, he was aware of companies which did not fit the criteria which had been set by the Government for the funding, and for loans which have been made available.

He said this was particularly the case for businesses which only have a small number of employees or are one-man bands – sole traders, and warned that these ‘could just collapse’.

Mr Conchie said the hospitality and retail industry in Cornwall had been particularly hit, having been preparing all winter for an Easter season that now would not start.

"Before this happened we were looking forward to a good year as people were reluctant to go abroad due to Brexit, not being able to get pet passports and uncertainty about flights.

"But the view from the hospitality industry is horrific. If, at the end of April the Government is able to relax some of the lockdown rules, then we might be able to have a summer season.

"It is not just the tourism and hospitality side but also all the other businesses which supply into those, including food and attractions."

The manufacturing industry in Cornwall is also affected, said Mr Conchie, due to issues with exporting and supply.

And he was concerned that it was the not knowing how long restrictions will be in place which was affecting businesses the most.

But Mr Conchie recognised that there had been positive stories in Cornwall regarding businesses which had been innovative in switching so they can deliver products and services direct to people’s homes.

He also highlighted the number of stories around companies offering to help those in need and the most vulnerable in Cornwall.

He said: "Businesses in Cornwall are very much part of the community. The heartwarming stories we hear about how they are helping others and how some furloughed staff are going out to volunteer across the board.

"It is a testament to Cornwall’s collaborative power and that is the positive that is coming out of this. Cornwall shouldn’t underestimate the power of collaboration. Collaboration is not just a nice thing to do, it is essential in this landscape."

Mr Conchie also paid tribute to the Cornish public for supporting local businesses during the pandemic.

"People are absolutely side by side with businesses and they are an integral part of the community here. People will be buying local and supporting local businesses where they can – we have to keep to social distancing but if we can support local businesses, hopefully they will be able to emerge from this afterwards."