Recommendation 9

HM Government · verbatim extract Accepted in Part

Response 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. Devolution of the Fund 9. Devolved Governments were clear that funding should not be reserved in the manner used under the UK Seafood Fund (UKSF) and emphasised that they are best placed to identify and respond to the needs of their own fishing industries. The Government therefore devolved the Fund in line with those discussions and priorities. As a result, £56 million out of the £360 million will go to support the fishing industries in Scotland, Wales and Northern Ireland, in addition to the wider spending settlements already provided to each Devolved Government by HM Treasury. The Government will continue to work closely and constructively with the Devolved Governments as delivery progresses. 10. At the 2025 Budget the Government provided £116m for the Fund for between 2026/27 and 2029/30, with the Barnett formula applying in the usual way. At fiscal events, including the 2025 Budget, the Barnett formula applies to individual programmes. This resulted in £13m capital departmental expenditure limits (DEL) (2026/27-2029/30) and £6m (2026/27-2028/29) resource DEL Barnett consequentials for the Devolved Governments. 2029/30 resource DEL budgets are yet to be confirmed. 11. It is for the Devolved Governments to allocate their Barnett-based funding as they see fit across their devolved responsibilities and they are accountable to their devolved legislatures for those decisions. They are not required to allocate this funding in the same way the UK Government has in England. Evidence based design 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. Case study 1: Fishing and Coastal Growth Fund in England – stakeholder engagement (autumn 2025) Context Defra is developing the Fishing and Coastal Growth Fund in England with feedback from the fishing and seafood sector, coastal communities, and other organisations. A national engagement round ran throughout autumn 2025 to capture different perspectives and ensure the Fund supports sustainable growth and benefits coastal communities. Approach We undertook stakeholder engagement across a range of complementary channels: six online webinars, an online survey, in-person port visits across various locations (including North Shields, Hartlepool, Poole, Mudeford, and Plymouth), and attendance at Regional Fisheries Groups. To ensure alignment across government, we also engaged relevant departments and arm’s-length bodies, including the Department for Transport, the Ministry of Housing, Communities and Local Government, the Marine Management Organisation, Natural England, and the Maritime and Coastguard Agency. Impact Robust evidence base developed from engagement to help strengthen the foundation for the Fund’s design. Consistent priorities identified: infrastructure, health and safety, workforce development, and attracting younger entrants. Practical ideas sourced on improving funding mechanisms to better match sector needs. Next steps Responses are being analysed to refine the approach of the Fund in the future and changes have already been made in year one as a result of engagement. Delivery of the Fund 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 Manage