More than 1,000 fishing and aquaculture businesses in England will receive direct cash grants through a fisheries support scheme announced today by Environment Secretary George Eustice and Chief Secretary to the Treasury Steve Barclay.

In the latest step to protect businesses affected by coronavirus, plans unveiled today mean that up to £9 million will be available for grants to eligible fishing and aquaculture businesses.

A further £1 million will be made available to support projects to assist fishermen to sell their catch in their local communities. This money will help fishing businesses find new ways to market and sell their catch while traditional markets are restricted, not only supporting the sector but also the local communities that depend on the industry.

Because the majority of fish they catch is usually destined for export, the English fishing fleet which catches fish stocks such as hake, scallops and crab has been hit by the closure of traditional export markets and the reduction in demand from the hospitality sector.

The support scheme – which will run for up to three months – takes action to meet the immediate needs of the industry by helping English fishing and aquaculture businesses with their fixed costs such as such as insurance, equipment hire and port costs.

The measures will support the English industry, in particular smaller fishing businesses, during this challenging time and follow an unprecedented package of financial support already announced for small firms.

The main features of the scheme are:

• For the catching sector, the fund will be open to under-24m vessel owners with fishing licences registered in England who recorded sales of £10,000 or more in 2019.
• Grants will be made to help cover fixed business costs. For the catching sector this will be calculated from the average business costs for the size of the vessel, as surveyed by the industry annually.
• Details of the eligibility criteria, including the criteria for the aquaculture sector and support for local projects, will be announced in due course by the Marine Management Organisation (MMO).
• The MMO will administer the fund, contacting eligible registered owners and licence holders directly in stages with details of how to apply, starting on Monday April 20 through to early May.
• Payments will be made for up to three months.

Environment Secretary George Eustice said:

This £10 million scheme will provide a lifeline for more than 1,000 fishing businesses so they can continue to maintain and operate their boats during this challenging time, which has seen falling prices and lack of demand for fish from the restaurant industry.

We are continuing to work closely with the fishing and aquaculture industry to ensure that they are supported and can get back to their vital role of providing fish for the table while contributing to the economy of many of our coastal communities.

Chief Secretary to the Treasury Steve Barclay MP said:

Fishing is at the heart of many of England’s coastal communities – providing local jobs as well as valued produce to their communities and through exports around the world.

Given the loss of trade particularly to restaurants as a result of Covid-19, this support will help fishing businesses weather the current challenges they face, and facilitate new growth in retail markets through innovative local distribution.

Tom McCormack, Chief Executive of the Marine Management Organisation, said:

We’ve continued to stay closely engaged with the fishing industry and are very much aware of the difficulties many fishing businesses have been facing with the downturn in markets for fish and shellfish. We absolutely acknowledge the importance of our fishing industries and share concerns about these current impacts – it is our problem too.

The data we collect from the fishing industry has proved timely and incredibly valuable in helping to quickly evidence the current situation and to target where financial support is most needed.

We will be reviewing as we go, and will continue to engage with and listen to industry to ensure we’re supporting our fishing industry in the right ways.

The seafood and fisheries sectors are encouraged to apply for the existing support available for businesses, including the Coronavirus Business Interruption Loan Scheme and the Coronavirus Jobs Retention Scheme.

The government has been working closely with the fishing industry to support the industry through this challenging period. Together with national fisheries authorities in Scotland, Wales and Northern Ireland the Government is also exploring methods to reduce the regulatory burden on the fishing fleet. These measures will be agreed jointly by the fisheries administrations and announced in due course.

Any measures will take into account the need to ensure the long term health of fisheries and the industry and will not include measures that would be detrimental to the long-term health of the sustainability of the sector, health of fish stocks and the wider marine environment.

The Marine Management Organisation (MMO), the marine manager and regulator for England and an arm’s length body of Defra, will administer the fund and pay grants targeted at those most in need. The MMO has successfully delivered over £100m through funds for fisheries and coastal communities in five years and currently operates the UK’s Maritime and Fisheries Fund (MFF).

MMO will continue to make payments on existing grants and process outstanding applications to the MFF within the agreed timescale.

As a result of this announcement, the devolved administrations will receive over £900,000 in Barnett consequentials.

• Only go outside for food, health reasons or work (but only if you cannot work from home)
• If you go out, stay 2 metres (6ft) away from other people at all times
• Wash your hands as soon as you get home

Do not meet others, even friends or family.

You can spread the virus even if you don’t have symptoms.

• Only go outside for food, health reasons or work (but only if you cannot work from home)
• If you go out, stay 2 metres (6ft) away from other people at all times
• Wash your hands as soon as you get home

Do not meet others, even friends or family.

You can spread the virus even if you don’t have symptoms.

• Rishi Sunak unveils the final details of Coronavirus Large Business Interruption Loan Scheme ahead of launch on Monday
• all viable businesses with turnover of more than £45m will be able to apply for government-backed support
• firms with turnover of more than £250 million can borrow up to £50 million from lenders
• this complements existing support including the Covid Corporate Financing Facility and the Coronavirus Business Interruption Loan Scheme

A government-backed loan scheme for large businesses affected by coronavirus has been expanded to cover all viable firms, the Chancellor announced today.

Outlining further details of the Coronavirus Large Business Interruption Loans Scheme (CLBILS) ahead of its launch on Monday, Rishi Sunak said all firms with a turnover of more than £45 million will now be able to apply for up to £25 million of finance, and up to £50 million for firms with a turnover of more than £250 million.

Business with turnovers of more than £500 million were originally not eligible for the scheme, which is being set up to help firms who do not qualify for the existing Coronavirus Business Interruption Loan Scheme – for small and medium sized businesses – and the Bank of England Covid Corporate Financing Facility – for investment grade companies. The move, which comes after extensive consultation with businesses, will ensure even more firms are able to benefit from government support.

The Chancellor of the Exchequer, Rishi Sunak, said:

I want to ensure that no viable business slips through our safety net of support as we help protect jobs and the economy. That is why we are expanding this generous scheme for larger firms.

This is a national effort and we’ll continue to work with the financial services sector to ensure that our £330 billion of government support, through loans and guarantees, reaches as many businesses in need as possible.

The Business Secretary, Alok Sharma, said:

Coronavirus has struck a heavy blow against businesses of all sizes across the UK. Expanding this scheme will provide larger firms with the support they need during the pandemic, helping to provide job security to thousands of people and protect our economy.

The government will provide lenders with a guarantee of 80% on each loan to give lenders further confidence in continuing to provide finance.

The scheme will be available through a series of accredited lenders, which will be listed on the British Business Bank website.

This support complements the unprecedented help available for businesses large and small, including CBILS, CCCFF, tax deferrals, the Coronavirus Job Retention Scheme, cash grants for small businesses, and covering the cost of statutory sick pay.

The government recognises many start up and early stage companies are facing challenges and are working with industry to assess these and consider further ways to offer support.

Further information

Support available:

• The Business Secretary and the Economic Secretary to the Treasury will co-chair a meeting of the Business Finance Council today to discuss the progress so far of the CBILS, and provide an update on CLIBLS. It will also be attended by Small Business Minister Paul Scully and representatives from UK Finance, the Finance & Leasing Association, British Chambers of Commerce, Institute of Chartered Accounts of England and Wales, the Federation of Small Businesses, British Business Bank, Barclays UK, Bibby plc, CYBG, HSBC UK, Lloyds Banking Group, NatWest Group, Santander UK and Funding Circle. The Small Business Commissioner Philip King will also attend.
• Government is also clarifying the position for firms owned by private equity, which will be able to access the guaranteed loan schemes.

Reactions from business

IoD Director General, Jonathan Geldart said:

The Government deserves credit for showing willingness to continue to adapt its coronavirus response. This development of the loan scheme should help mid-sized firms, which play a vital role in their supply chains and local communities. This crisis justifies exceptional measures and we need to keep the foot on the gas to get the support to the businesses that need it.

Rain Newton-Smith, CBI Chief Economist said:

These measures set out by the Chancellor will go a long way to supporting mid-cap companies, some of which are the UK’s most important and iconic regional employers.

This scheme is clearly targeted at helping several thousand mid-tier firms, rather than those already up and running for small and larger businesses.

The flexibility shown by the Government in recent weeks to do all they can for businesses small, medium and large will have protected many jobs. What’s essential now is to get the loans flowing as smoothly and swiftly as possible to those businesses in need.

BCC Director General Adam Marshall said:

Once again, it is good to see the Chancellor listening to real-world business concerns, and expanding assistance to good companies facing severe cash constraints as a result of the Coronavirus crisis. These changes fill an important gap in government support, and could make a real difference to medium-sized and larger-firms navigating challenging circumstances. It’s now crucial to ensure that this enhanced support reaches companies in difficulty as quickly as possible.

Stephen Phipson, Make UK’s Chief Executive said:

This is a welcome announcement from the Chancellor which will help both the squeezed middle and those larger companies who have not been able to access help to date. The situation remains fluid and as we assess the detail we will continue to work closely with the Treasury to ensure those companies who need support can turn on the tap when needed.

• Only go outside for food, health reasons or work (but only if you cannot work from home)
• If you go out, stay 2 metres (6ft) away from other people at all times
• Wash your hands as soon as you get home

Do not meet others, even friends or family.

You can spread the virus even if you don’t have symptoms.