Investment in Northern Isles connectivity

A £20 million fund will help Scotland’s islands to play a crucial role in our society, culture and economy.

The capital investment, to be split equally between the two local authorities as part of the 2025/26 Budget, would help to sustain and improve inter‑island connectivity in a way that best meets local needs. 

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 £20 million 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.”

Background

The Scottish Budget for 2025 to 2026 was published on 4 December 2024.

The funding is in addition to £50 million revenue funding available to the four councils (Orkney, Shetland, Argyll & Bute, Highland) which operate their own ferry services, and £4 million to reflect the higher costs of delivering services in island communities.

Interisland connectivity has been a focus of discussion at the Orkney and Shetland Ferry Replacement Task Forces since early 2023.