SNP accused of 'U-turn' on £10m crisis fund for islanders
Claims that islands “sold short” after details of the SNP’s pre-election promise of support for islanders hit by ferry disruption emerged
The SNP has been accused of making a U-turn on its pre-election promise of a £10m support fund for island businesses impacted by chaos on the ferry network.
It comes after the first minister announced the launch of the fund during a trip to the Outer Hebrides yesterday, with it emerging that only £3m has been committed for this year.
Mr Swinney promised back in April to set up a £10m fund within 100 days of the Holyrood election as islanders grappled with the impact of a crisis in the CalMac fleet, which left eight vessels off the water at the start of the new tourist season.
But the staggered nature of the payments - not mentioned when the FM made the announcement in April - has caused anger on the islands.
Na h-Eileanan an Iar MSP Donald MacKinnon said issues with the ferries had pushed island businesses and communities to” breaking point”.
“This U-turn adds insult to injury,” the Labour MSP added.
Mr MacKinnon said: "Our islands have been let down by the SNP time and time again and the SNP's decision to hold back funding suggests they are expecting more disruption.
“John Swinney needs to deliver the funding he promised our community and make sure all businesses affected by this crisis can access it."
The fund available to businesses this year is less than £4.4 m delivered in 2025-26 from the Islands Resilience Business Fund.
Torcuil Crichton, Labour MP for Na h-Eileanan an Iar, said the islands had been “sold short” after details of fund emerged and said the Scottish Government “owes islands another 7m.”
Mr Crichton said: “Made within a hair’s breadth of their fluctuating 100-day deadline, Scottish Government’s announcement of less that a third of the promised funds for beleaguered island businesses which have to bear massive losses is selling us short.
“Across the Western Isles, in Uist and Barra and in Harris and Lewis, business losses have been mounting up.
“We have seen visitor numbers drop by thousands and business takings crash by as much as 70 per cent when the ferries don’t run to the mainland or between islands.”
The Isle of Lewis - which has three quarters of the Western Isles’ population - has been excluded from the fund.
Mr Crichton said the fund should be paid in full this year and urged the government to make Lewis eligible for support.
He said: “Even for those who can meet strict eligibility criteria, these funds don’t touch the sides of losses. For many others business who have paid the financial and reputational cost of continued disruption, there has been no help at all.
“Too many of my constituents have missed out on help. I have asked the Scottish Government and will ask again: widen the eligibility, deepen the offer, and speed up the process.
“Delivering less than a third of what has been promised has become the modus operandi for a government that has turned its back on island communities.”
Sarah Maclean, chief executive of Outer Hebrides Tourism, said the staggering of payments was a “surprise”, adding she was “disappointed” that businesses on Lewis had been excluded from the support.
She said: “It’s fair to say the announcement that the £10m IBRF pledge was to be delivered over a number of years was a surprise to us too, we had expected from the announcement of the funding in April that it would be a single pot.
“Needless to say, we are grateful the cash is coming to island businesses but are also disappointed that Lewis is the only one of the Outer Hebridean islands excluded from applications.
“As a Destination Marketing Organisation we have spent time explaining to Government that the interconnected nature of our sector sees visitors travelling through the islands to maximise their experience, meaning a ferry disruption at one end can have a knock-on for bookings right through the islands.
“We know businesses in every affected island lost thousands in revenue during disrupted periods and it is disheartening that some are still excluded.”
The Scottish Lib Dems criticised the Scottish Government for leaving mainland coastal communities, such as Dunoon and Mallaig, out of the fund despite “delayed and cancelled ferries hitting their local economies hard”.
Highlands an Islands MSP Morven-May MacCallum said: “As it stands, towns like Dunoon and Mallaig won’t see a penny in compensation, despite delayed and cancelled ferries hitting their local economies hard.
“The First Minister hinted months ago that he was thinking of addressing these shortfalls, but today's announcement confirms that coastal communities have been forsaken."
But SNP MP for Argyll and Bute Brendan O’Hara welcomed the money: “It’s incredibly welcome and shows that the government is recognising the big problems that ferry disruption caused islands communities.”
A spokesman for the Scottish Government said: “The Islands Resilience Fund provides targeted support for island businesses most affected by ferry disruption.
“The first £3 million phase of this wider £10 million investment builds on the £4.4 million Islands Business Resilience Fund delivered in 2025-26.
“We recognise that ferry disruption affects communities and businesses across our islands. The Fund has been designed to target support to those businesses and livelihoods most impacted, helping to maximise the benefit delivered to island communities.
“The Fund's eligibility criteria have been informed by analysis of ferry disruption data, lessons from the previous fund and engagement with businesses and stakeholders.
“We are committed to delivering the full £10 million Islands Resilience Fund, with further phases to be developed and delivered over the course of this Parliament.”
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