Driving growth on Scotland's islands
Funding to create jobs and strengthen local economies.
Island communities will benefit from a £5.75 million boost to
support critical infrastructure, tackle rising costs and
accelerate the transition to net zero.
The new investment aims to address pressures including
depopulation and rising fuel costs which disproportionately
affect island communities.
It includes:
- £3 million through the Islands Programme, building on
previous investments which have delivered critical infrastructure
projects ranging from affordable homes on Shetland to upgraded
airfield terminal buildings on Eday and Westray.
- £1 million for the continuation of the Islands Cost Crisis
Emergency Fund to help communities tackle increasing costs,
distributed through the six island local authorities.
- £750,000 to support net zero projects as part of the Carbon
Neutral Islands programme, with past initiatives including
decarbonisation of community spaces in Barra and Vatersay,
developing a solar farm on Islay and transport decarbonisation on
Hoy.
- £1 million to support a range of projects connected to
commitments made in the Scottish Government's new National
Islands Plan, including an island scholarship pilot scheme,
mental health support for young people and training courses in
sustainable tourism.
Deputy First Minister said:
"Scotland's islands have tremendous potential and this investment
in infrastructure, jobs and cost-of-living support will help
island communities flourish.
"Today's funding builds on our new National Islands Plan,
published last month, which sets out targeted action to improve
housing, healthcare and economic opportunities on Scotland's
islands — because when island communities thrive, the whole of
Scotland benefits."
Ionad Eilean na h-Òige (the Island of Youth Centre) on Eriskay is
a previous beneficiary of Islands Programme funding. The project
is transforming Eriskay's former school into a heritage and
community hub with a library, café and hot desk facilities.
Sandra MacInnes, Project Development Officer at Ionad Eilean na
h-Oige, said:
"The support we have received through the Islands Programme has
been a fantastic boost to the Ionad Eilean nan h-Òige project and
has helped build real momentum behind our wider vision for
Eriskay.
“It not only provided vital investment but also gave the
project credibility and helped attract further match funding from
other partners, giving funders confidence in both the strength of
the project and the commitment of the community behind it.”
Background
The Scottish Government's second National Islands Plan,
published in February 2026, sets out the government's vision for
Scotland's islands, with a focus on helping communities retain
and attract residents.
The Western Isles experienced the largest population decline of
any Scottish council area between 2011 and 2022. Island
households often experience even more intense cost-of-living
pressures than mainland areas, including higher energy costs. All
dwellings in Orkney and Shetland and 89% of homes in the Western
Isles are off the gas grid.
The Islands Programme is open to the six island local
authorities. These are: Shetland Islands Council, Orkney Islands
Council, Comhairle nan Eilean Siar, Argyll and Bute Council,
Highland Council and North Ayrshire Council. Since its
establishment in 2021-22, the programme has made 88 grant awards
in support of 55 separate islands, totalling £19.7 million.
The Carbon Neutral Islands programme will continue to support net
zero projects on Yell, Hoy, Raasay, Barra, Islay and Cumbrae.
