Orkney and Shetland to share £20m to boost island connectivity
A £20 million fund will help Orkney and Shetland to sustain and improve inter‑island connectivity.
Announced as part of the 2025/26 Budget, finance secretary Shona Robison said the capital investment, to be split equally between the two local authorities, would allow the islands to play a crucial role in Scotland’s society, culture and economy.
Ms Robison said: “Scotland’s islands face unique challenges and this government is determined to do everything we can to support them.
“That is why the Budget I delivered last week included £20m in new funding to support connectivity in the Northern Isles, in a way that best supports their local communities.
“This will support work around ferries, flights or fixed links such as tunnels and bridges. We have listened to the calls from people in Orkney and Shetland and we are taking action – that is what people in our islands can expect from this government.
“Our Budget will deliver real progress for Scotland, which is why we are asking Parliament to unite behind it.”
First stage of consultation on Shetland’s island connectivity
The funding is in addition to £50m revenue funding available to the four councils (Orkney, Shetland, Argyll & Bute, Highland) which operate their own ferry services, and £4m to reflect the higher costs of delivering services in island communities.
It comes as Shetland Islands Council launches an online survey, marking the beginning of the work to consider the future transport connectivity for its island communities.
This first survey focuses on getting information on people’s current travel behaviour, their views of the existing ferry services and the transport challenges that they face on a day-to-day basis. The survey is open for six weeks, and paper copies, with pre-paid return envelopes, are available if preferred.
Stantec, in partnership with COWI and Mott MacDonald, will engage with island communities through a series of public drop-in sessions across the isles in the New Year. The information gathered will then be put together in a Strategic Business Case, making the case for transport investment.
If that is approved by Shetland Islands Council, the Stantec-led team will then move on to focussing on identifying preferred options for individual islands, with further stakeholder engagement taking place during 2025.
Councillor Moraig Lyall, who chairs the council’s Environment and Transport Committee, said: “This first survey focusses on identifying the challenges our existing inter-island transport systems pose to how we live and how our economy is shaped – our work, recreation, business and everyday activities. It gives us the information needed to understand and evidence the problems. The next stage will then look at what the various options might be for the future. I’d urge everyone to complete the survey so we can start with a strong basis of evidence for change.
“We all, as individuals and as island communities, need to make sure that we give our views and make our suggestions to inform the business case at each opportunity as we move forward.
“I completely understand that people will feel that this is a long and complex process. However, we need to remember that we are asking for support from UK and Scottish Governments for very large investments that we can’t afford on our own. We are required by government to follow a strict series of steps demonstrating a strong and resilient case for funding for future connectivity for our islands.”