Source · Select Committees · Environment, Food and Rural Affairs Committee

Recommendation 1

1 Accepted

While we welcome the Fishing and Coastal Growth Fund, the government has not clearly set...

Conclusion
While we welcome the Fishing and Coastal Growth Fund, the government has not clearly set out its rationale for committing £360 million over 12 years. The timeframe aligns with revised reciprocal access arrangements between the UK and EU, but it is unclear why this duration is the most suitable for investment planning or how the funding level was calculated. Including coastal community priorities within the Fund’s remit reflects the close link between fishing activity and local economic wellbeing, but the government has not demonstrated why this is best delivered through a new, single integrated scheme. While the Fund provides an opportunity for growth, resilience and competitiveness of the sector, it lacks clear objectives to track progress. (Conclusion, Paragraph 7)
Government response summary AI-generated
The government provided a rationale for the Fund's purpose, stating it will support the fishing and seafood sector and contribute to coastal community regeneration. It committed to using clear and measurable criteria to ensure the Fund achieves its objectives, with design informed by evidence and stakeholder engagement.
Summary of the government's response below — read the verbatim text to verify.
Government Response Accepted
HM Government · verbatim extract Accepted
7. The Government welcomes the Committee’s interest in the role of the 12-year, £360m Fishing and Coastal Growth Fund (hereafter referred to as the Fund) in supporting the long-term future of the sector. 8. The Government is using the Fund to support a more modern, resilient and prosperous fishing and seafood sector, while also contributing to the regeneration of coastal communities. The Fund is intended both to support the sector with the immediate pressures it is facing and to support longer-term growth and resilience across the fishing industry and the communities that depend on it. As we develop the use of the Fund, and invite applications to schemes supported by it, we will use clear and measurable criteria to ensure the Fund achieves its objectives. 12. The design of the Fund has been, and will continue to be, informed by evidence and engagement. The Government has drawn on lessons learned from independent evaluations of previous schemes, undertaken in line with Magenta Book guidance, including the European Maritime and Fisheries Fund, the Fisheries and Seafood Scheme (FaSS) and the UKSF. It will also be shaped by sustained engagement with the fishing sector in England and by careful consideration of stakeholder feedback. This will help ensure that investment is targeted where it can deliver the greatest value for the industry and that routes into funding are clearer and more effective for the sector. Details on the engagement undertaken for the Fund are located here, with a summary included in case study 1. 13. Reflecting stakeholder views, we have introduced some front-loading to spending under the scheme, while ensuring funding will be available for the full 12 years of the Fund. Furthermore, to ensure that benefits are realised as early as possible, the Government decided to begin allocating funding in 2026-27 through existing mechanisms, such as through the FaSS, which is administered by the Marine Management Organisation (MMO). The overall spending profile for the Fund was announced by HM Treasury at the November Budget 2025, with details located here. 16. Recent independent evaluations have found that the FaSS is overall a well-administered fund, although there is also some room for improvement. In the most recent published review of the FaSS processes, 71% of applicants reported positively on the ease of the claims and disbursement process. Independent assessors also found the FaSS to be well communicated, with the MMO telephone helpline particularly valued. Further independent evaluations of the FaSS and the UKSF will be published later this year. All lessons learnt will be integrated into the design and delivery of relevant funds. 17. We are currently developing future plans for the Fund based on engagement with the sector which started in autumn 2025. A broader range of spending options will be established, taking us beyond use of the FaSS. The Government is using engagement with key stakeholders, including the industry and the recently established Expert Advisory Group, to develop priorities for the Fund from year two onwards. The Group brings together interested stakeholders from across the sector, including representatives from the catching sector, environmental non-governmental organisations and universities, and held its first meeting in March 2026. 20. Overall, the Government believes that our design and early delivery of the Fund reflects the Committee’s recommendations, by combining long-term investment with front-loaded delivery and a commitment to ongoing refinement. The Fund is underpinned by evidence, independent evaluation and extensive stakeholder engagement, and will continue to evolve as further priorities are developed with industry. Through being adaptable, the Fund can be delivered taking into account improvements to existing schemes and evolving stakeholder priorities. This allows the Government to ensure that funding supports both immediate pressures and longer-term transformation, while maintaining a focus on sustainability, community benefit and value for money.
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