A £2 million project to create new workspace on the outskirts of Porthleven is underway having secured £700k from the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP).

The project is being spearheaded by the Porthleven Harbour and Dock Company (PHDC) and represents the first of two phases of work on the site, initially creating workspace for 40 jobs across three business units, helping to diversify Porthleven’s seasonal, tourism-led economy.

There will also be 40 public car parking spaces and a cycle hire scheme to reduce congestion in the picturesque harbourside town, which is very busy in the summer months.

The project is being supported by the LEP using £700k from the Government’s Local Growth Fund, with a further £1.3 million coming from the PHDC.

Planning permission has already been granted on a site bordered by Tolponds Road and the B3304 on the northern edge of the town, and work to prepare the site started last week

St Ives MP Derek Thomas, whose constituency includes Porthleven, said: “I’m delighted that this initiative has secured such a significant amount of Local Growth funding and commend all those who worked to secure this investment.

“Job opportunities that extend beyond the typical visitor season in Porthleven are always welcome as they enable more local people to stay in the area, work in the area and raise their families in the area. This is essential for local growth and will build confidence for others to invest in Porthleven.”

Glenn Caplin, chief executive of the Cornwall and Isles of Scilly LEP, said: “This is an important project for Porthleven that will provide year-round employment and help local businesses to become more productive by offering them modern workspace that meets their needs and helps them grow.

“It will also reduce car journeys and congestion in the town centre with better connectivity on foot and by bike, and that’s good news for residents and visitors.”

Truro-based RHOS Construction have been appointed by PHDC to build the project, which is expected to be completed in the autumn, with businesses moving in before the end of the year.

The LEP’s investment is the latest from its £78 million Local Growth Fund allocation secured from the government in the last five years. Other projects include a recently announced investment of £575k in seafood supplier Falfish in Redruth; an £8.4 million investment in Goonhilly Earth Station; £2 million for creative industries workspace at the Hall for Cornwall; £2 million for business and incubation space in Newquay and £1 million towards energy efficiency and electric vehicle projects on the Isles of Scilly.