Source · Select Committees · Environment, Food and Rural Affairs Committee
Recommendation 10
10
Rejected
The allocation of the Fisheries and Coastal Growth Fund through the Barnett formula is inconsistent...
Conclusion
The allocation of the Fisheries and Coastal Growth Fund through the Barnett formula is inconsistent with model preferred by industry stakeholders in all parts of the United Kingdom. We are concerned that it does not reflect the relative scale, distribution or needs of the fishing industry across the UK. In 27 the absence of any proper explanation by the government of why the total sum that has been allocated to the fund was chosen, or for the duration of the scheme itself, it is impossible for anyone to have confidence that there is political or fiscal integrity in the thinking behind the scheme. The UK Shared Prosperity Fund provides a precedent for region-specific funding using bespoke metrics. Collaborative implementation and administration should have been possible and would have been in the best interests of fishing communities. Beyond the fact that the Scottish Government demanded that administration of the fund should be devolved, there is no obvious reason for the departure from previous practice. Engagement with the devolved administrations is important, but should not replace early, meaningful engagement with the industry. For the UK Government to engage respectfully and meaningfully with the devolved administrations is important, but that is no substitute for early, meaningful engagement with the industry. (Conclusion, Paragraph 22)
Government response summary AI-generated
The government rejected the committee's concerns about the Barnett formula allocation, stating that devolved governments specifically requested funding not be reserved and preferred to identify their own fishing industry needs. It confirmed £56 million would go to Scotland, Wales, and Northern Ireland via this method.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Rejected
HM Government · verbatim extract
Rejected
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. 14. The Government is also pleased to share that it has renewed the Seafood Exports Package for year one of the Fund. The renewed Package launched on 21 April 2026 (a few days before the publication of the EFRA Committee’s report) with an allocation of £1.5 million a year. The Package is a dedicated fund providing support to UK Seafood exporters, and will be a key component in early delivery of the Fund. Although funded from the English allocation of the Fund, the Package will support seafood businesses across all four nations of the UK. It will help businesses to seize new export opportunities, strengthen their capacity to trade internationally, and reduce market access barriers in target markets by funding international seafood promotion activity such as trade exhibitions and missions, as well as overseas in-market seafood trade specialists. The Package will be delivered by Defra, working closely with Seafish, the Department for Business and Trade, and the GREAT Food and Drink campaign.
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