Revisiting Fuel Tax Concessions (ftcs): the Economic Implications of Fuel Subsidies for the Commercial Fishing Fleet of the United Kingdom

Fuel forms a significant portion of the total expenditure for many commercial fishing vessels and in some cases, profitability can be dictated by fuel costs. In many nations, including the UK, these fuel costs are reduced by costreducing subsidies. There is evidence of growing support from various channels that public opinion is moving towards a reassessment of fuel subsidies. Analysis of the economics of the UK fishing fleet, using publicly available industry-supplied data, implies that the nominal annual value of fuel tax concessions for diesel is between & POUND; 150-180 million per year (2009-2019). That support is largely provided to the most fuel-intensive fishing methods, such as mobile demersal trawls and dredges. Results show that, without the current fuel tax concession, several fleet segments would be deemed unprofitable. This paper outlines the current value of fuel tax concessions for fishing vessels and potential policy considerations for reform.