Scottish Budget: Fresh focus on fixed links between Scottish islands
Campaigns have been running for years across Scotland’s northern isles to improve inter-island connections
Fixed links and clean energy projects for Scotland’s islands have been promised as a priority in this year’s spending review, as island communities continues to benefit from rates relief.
Finance secretary Shona Robison announced Orkney, Shetland and the Western Isles councils will see an economic boost under a new National Islands Plan in her Budget statement on Tuesday.
The plan, which includes a new “accelerator model” to unlock private sector investment in the three archipelagos. The scheme is a continuation of the Carbon Neutral Islands project - a Scottish Government initiative, established in 2021, to support six islands in becoming carbon neutral by 2040 - plus £7.1 million for island-specific investments.
Ms Robison said the cash will be for “clean energy, fixed links and any other key infrastructure investments.”
Campaigns have been running for years across several of the islands for tunnels and bridges to establish better inter-island connections to replace ageing ferry fleets. Shetlanders launched a fresh campaign in August last year to build undersea tunnels between the archipelago’s mainland and its northern isles - a move some islanders have been working on for the last three decades.
Island hospitality, retail and leisure businesses will also benefit from a continued 100 per cent non-domestic rates relief for the next three years, according to the fiscal statement.
In a joint statement, councillor Heather Woodbridge, leader of Orkney Islands Council, councillor Emma Macdonald, leader of Shetland Islands Council and councillor Paul Steele, leader of Comhairle nan Eilean Siar said: “We are delighted with the positive engagement we have had with the Scottish Government, resulting in this welcome announcement of an Islands Accelerator Model which will invest hundreds of millions of pounds in our three island communities. We have been working with the Scottish Government for several months on this matter and this is a very positive outcome.
“It is essential that our communities see clear and lasting benefits from the transition towards renewable energy production. Better infrastructure on our islands is an essential element of this transition and will also enable the Scottish Government to achieve its renewable energy ambitions.
“Our engagement with the Government has been professional, constructive and productive. We are confident that our ambitions are shared by the First Minister and the Finance Secretary.”
Orkney Liberal Democrats MSP Liam McArthur welcomed the “accelerator model” for the islands, saying: “Hopefully this can help unlock investment in the key infrastructure our island communities to fulfil their potential.”
He added: “The 100% rates relief for island hospitality businesses was also something I have been pressing Ministers to confirm, so I am delighted to see that this will remain in place for the next three years. This represents a vital protection for many of the small businesses that are the lifeblood of the Orkney community, but further targeted support on business rates will be need.”
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