Fishing - pelagic quota cuts 2026 - consultation outcome: Scottish Government response

Background on the Economic Link Policy

The economic link licence condition has been part of all UK fishing licences since 1999. It was designed to ensure that UK vessels fishing against UK quota deliver genuine economic benefits to UK communities dependent on fisheries and related industries. In Scotland, the policy was amended following consultation in 2022, with new provisions introduced from January 2023. The aim of the amended policy was to:

• support the long term, sustainable growth of local economies where fishing is an important driver for business activity (e.g. Peterhead, Fraserburgh, and Shetland) increasing the volume and regularity of the supply of fish landed and for processing in Scotland;
• attract greater investment and employment in Scotland’s fishing industry by reducing supply chain risks for Scottish fish processing and handling businesses; and
• bring greater social and economic benefits to Scotland from a Scottish national resource by spreading the benefit arising from fishing quotas more widely through fishing communities.

The amended economic link licence condition made landings into Scotland the primary basis for compliance, removed alternative compliance routes such as crewing or expenditure, and introduced phased targets for pelagic species included in the provision: 30% in 2023, 40% in 2024, and 55% in 2025. From 2025, vessels must either land at least 55% of combined landings of eight key species into Scotland or return quota equivalent to 26% of the value of the shortfall to the percentage target. These measures were intended to strengthen the economic link and increase benefits to Scottish processors, ports and fishing communities.

Scotland’s economic link policy aligns with the national benefit objective in the Fisheries Act 2020, by supporting coastal communities and maintaining the role of the seafood sector in employment and food supply. It aligns with the Scottish National Marine Plan, particularly Objective 3 and 4 of the Sea Fisheries policy section. The policy approach aims to ensure that Scottish vessels fishing against Scottish quota (which are distributed yearly by the Scottish Government for no charge) provide genuine economic benefits to Scottish communities dependent on fisheries and related industries. This is particularly relevant for the recognised Scottish ‘pelagic fleet’ where a very small portion of the vessels (21 vessels from 1998 vessels in 2024) lands around 40% of Scotland’s quota stocks by value based on 2024 figures. Pelagic vessels – like all others in the fleet - are distributed their fishing opportunity by the Scottish Government at no cost but unlike many other sectors their quota share has increased markedly over recent years as a result of the UK becoming an independent coastal state.

While the amended policy has increased landings into Scotland, from a pre-policy average of 50% to 63% in 2024, it divides stakeholder opinion – as it has been throughout. Catching businesses have raised concerns about operational flexibility and market access, particularly given the higher prices available abroad, while processing businesses argue that the policy is essential to sustain domestic capacity and employment and called for further amendments. For more details on the impact of the economic link licence amendments introduced on 1 January 2023, please see a recently published Review of the Amendments^[2].

Why Government Action is Being Considered for 2026

ICES published catch advice for 2026 on 30 September 2025, which advised a severe reduction in the NEA mackerel TAC following which Scotland’s pelagic processing sector made urgent calls for government intervention. Processors warned that without decisive action, the anticipated quota cuts would create a severe threat to their businesses, jeopardising jobs, investment, and the wider coastal economy. They highlighted that mackerel is the cornerstone of Scotland’s pelagic industry and that a sharp fall in landings would undermine the viability of processing plants, jeopardise infrastructure projects, and ripple through supply chains that support haulage, fuel, and engineering services.

The urgency of the situation is stark. A 48% reduction in the NEA mackerel TAC cuts the global TAC to 299,010 tonnes, with the UK share estimated at 96,918 tonnes and Scotland receiving approximately 74,046 tonnes. Based on historical fishing activity and quota uptake between 2022 and 2024, Scottish landings in 2026 are expected to range between 74,046 tonnes and 79,691 tonnes, representing a reduction of between 59% and 61% on 2024 figures. A contraction of this magnitude would significantly reduce raw material availability for processors, erode margins, and threaten the viability of businesses that have invested heavily in infrastructure based historical landing patterns.

Approach to Consultation and Development of Evidence Base

The Scottish Government has adopted an accelerated approach to engagement and evidence gathering due to the time constraints created by the proposed exceptional quota reductions for 2026. A formal three month public consultation was not feasible within the available timeframe. Instead, the approach has combined targeted stakeholder engagement with analysis of multiple data sources to ensure decisions are informed by evidence.

Key Components of this Approach Include:

• Industry Feedback: Direct engagement has been prioritised through roundtable discussions and one-to-one meetings with businesses most impacted by the proposed cuts.

• Landings Data: All commercial fishing vessels are required to provide detailed information on their fishing activities. This includes species caught, area of capture, type of fishing gear used, and port of landing. These statutory returns provide the foundation for understanding historical and projected landing patterns.

• Economic and Social Impact Evidence: Previous consultations, including Business and Regulatory Impact Assessments (BRIA) and Islands Impact Assessments, and reviews of the policy have been drawn upon to understand the wider socio-economic implications of policy changes and quota reductions.

• Scientific Advice: Published ICES quota advice and associated stock assessments provide the biological context for management decisions and underpin the scale of the proposed reductions.

This evidence base has informed the development of policy options aimed at balancing the national benefit objective (and other government objectives) with the operational realities faced by industry during a period of unprecedented quota constraint for this stock. In the following section we will explore feedback received from the pelagic fishing industry.

Summary of Stakeholder Feedback

Direct engagement has been prioritised through roundtable discussions and one-to-one meetings with businesses most impacted by the proposed quota reductions. Twenty six individual sessions were held with pelagic catching businesses, processors, and port authorities. In addition, meetings were convened with the Scottish Pelagic Fishermen’s Association and the Scottish Pelagic Processors Association to capture sector-wide perspectives.

This targeted approach offered several benefits. It enabled in-depth, focused discussions with those most exposed to the operational and financial risks of quota cuts, allowing officials to gather detailed evidence on business models, investment exposure, workforce implications, and views on potential mitigation measures. The format also provided flexibility to explore specific concerns and test emerging policy ideas in real time. However, responses were not obtained from wider society.

The following sections summarise the feedback gathered through this process, structured under three headings, based on the different sector of the pelagic industry:

1. Processors – primary and secondary processors based in Scotland.
2. Pelagic fleet & representative organisation – vessel owners which are part of the Scottish pelagic fleet and their representative organisations.
3. Port authorities – those two port authorities which see the vast majority of pelagic landings.