Question to the Department for Transport:

To ask Her Majesty's Government what financial checks they made before awarding grants to each of the cross-Solent ferry operators during the temporary suspension of competition law due to the COVID-19 pandemic.

From April 2020 – April 2021 the Government made a series of grant payments to the Isle of Wight Council and Council of the Isles of Scilly to safeguard lifeline services. In total over £8 million of funding was provided to the Isle of Wight Council for the cross-Solent ferry operators and over £7.5 million to the Council of the Isles of Scilly for Isles of Scilly operators. These grants were paid to the local authorities for the provision of lifeline services, as set out within the conditions of the Memorandum of Understanding agreements made between the individual Councils and the Department for Transport. They were returnable under specific conditions being met.

Before grant payments were provided to the Councils, the Department, alongside external financial advisors, undertook rigorous financial checks to ensure the levels of funding were appropriate. This included analysis of the operator’s financial reports, which included data on the revenue and costs of operating the agreed routes to the minimum service level. Throughout the duration of the scheme, regular checks and monitoring took place to ensure the continued need for support.