Farmers and fishermen in the Isle of Man have been told government support to their industries is to be cut.

The Department of Agriculture, Fisheries and Forestry has pulled out of two assistance schemes in a move which will save around ?300,000.

DAFF says it has to find the best way to spend tax payers money and make sure every penny spent in support delivers real improvement.

Marian Kenny reports (text, below, from attached audio file):

From 12 noon today funding was halted for the Farm and Horticultural Improvement Scheme and the Fishing Vessel Financial Assistance Scheme.

That abrupt announcment has been met with dismay by farmers and skippers, who only heard of it this morning.

The loss of nearly ?100 million next year from VAT revenues, after the United Kingdom changed its agreement with the Isle of Man, means every department is looking at where money can be saved.

Some of the Island's fishing skippers relied on grants to purchase boats, engines and winches.

The Manx NFU says it's shocked at the news and is assessing the situation.

DAFF minister Phil Gawne says the department is examining its priorities, and slimmed-down versions of the schemes may be offered in furture, if money is available.