Cash to make UK ‘world leader’ in safety and sustainability

The UK Government is investing £10 million in a new innovation fund to “help transform” the fishing industry, it was announced yesterday.

A further £2m will be provided for fishing safety projects in England and “to give the devolved administrations the ability to do the same”.

Chancellor Philip Hammond revealed details of the cash boost in his Budget speech.

The funding will be delivered by UK Research and Innovation, which works in partnership with universities, research organisations, businesses, charities, and government to create the best possible environment for research and innovation to flourish.

Mr Hammond said the financial support – to be spread over the next three years – would “ensure the UK is a world leader in safe, sustainable and productive fishing”.

Scottish industry chiefs welcomed it, although it was not clear last night how much of the money will make its way north of the border.

Mike Park, chief executive of the Scottish White Fish Producers’ Association, said: “It is a first I believe and very useful that the chancellor has identified the fishing industry in particular with regards to the requirement for additional funding, especially in the area of safety and innovation.”

Banff and Buchan Conservative MP David Duguid said: “I very much welcome this investment in fisheries technology and safety measures and look forward to finding out exactly how this cash will be distributed.”

The government has yet to spell out the total size of the cash pot available for funding fishing industry projects when EU support dries up after Brexit.

And despite Mr Hammond increasing a tax break worth up to £1m for all qualifying investment in plant and machinery on or after January 1 2019 until December 31 2020, in order to stimulate business investment, fishers are unlikely to feel much benefit.

Callum Wilson, tax partner at Aberdeen-based accountancy firm Johnston Carmichael, said: “The full benefit of this change may be denied to many fishing businesses because they operate via mixed partnerships, including companies.

“These do not qualify for the annual investment allowance because they fall outwith the EU’s narrow definition of a business, which includes only partnerships between individuals, and which the UK cannot change on its own.”

Mr Wilson added: “HM Revenue and Customs is taking a tough line on whether new fishing vessels should be regarded as long-life assets that are only eligible for reduced, special rates of capital allowance.

“The argument generally comes down to whether a new vessel’s expected useful economic life exceeds 25 years.

“As fishing vessels are often written down over as little as 10 years, there is an economic case to be made for excluding them from the restrictions placed on long-life assets.”