Infrastructure Investment Plan 2021-22 to 2025-26: progress report - 2021 to 2022

Driving inclusive economic growth

Creating World Class Digital System

2021 Digital Strategy

The 2021 Digital Strategy is committed to strengthening digital public services through investment in digital transformation. The use of common platforms, Payments and Identity platforms, and investment in Cloud technology will drive efficiencies across the public sector.

Digital Payments Programme

The Digital Payments Programme will provide a centralised payments out/in digital service for public sector organisations to consume as required and made its first success run of live payments in December 21 and will begin live payments for its Beta partner in Summer 2022. Work is underway of developing the post-Beta business case to account for a wider service customer base.

Digital Identity Programme

The Digital Identity Programme will provide a single digital identity for Scottish citizens to access public services in Scotland. It continues to work with its partner Scott Logic in moving towards launch of a minimum viable product in Summer 2022 with its Secure Sign-On project, to be followed by the Prove Who You Are component later in 2022. Disclosure Scotland have signed up to be the first Service Customer for the Digital Identity service. Exploratory work has begun on phase three of the service which will introduce a 'Attribute Store' component for individuals to store and choose whether to share their own personal attributes in support of accessing public services. Avocco have been awarded a contract to support this exploratory work.

Cloud First Programme

The Cloud First Programme enables the Scottish public sector to realise the benefits of Cloud services by accelerating the adoption of modern cloud technology by providing a SG Cloud platform, associated implementation & migration services, Cloud learning & community. The programme continues to provide hosting and security services to Digital Payments & Digital Identity, which are crucial to these programme's Beta developments, and has successfully completed the migration from on-premises hosting of existing Digital Connectivity R100 and Digital Data GISaT to the SG Cloud Platform.

The next stages of the programme have begun, including the design and build of the scalable SG Cloud Platform Services. This will offer AWS and Azure environments and associated billing, security, cost efficiency and carbon monitoring services for SG core services and agencies hosting requirements from winter 2022, and continuing work on ensuring the environments on the Cloud platform has secure architecture in alignment with National Cyber Security Centre principles. Further development continues on a transparent commercial model and a streamlined adoption process for users. The SG Cloud Community continues to develop guidance & learning and share best practice on using cloud based services for the Scottish public sector.

CivTech

In 2021-22, CivTech delivered a total of 15 Challenges (12 on the main Accelerator, 2 as Sprints outwith the Accelerator, and one a major SBRI project for NatureScot). The main CivTech 6 Accelerator was completed in February 2022, with eleven of the teams receiving post-Accelerator PCA funding. The CivTech 2021-24 Outline Business Case underwent a very successful Assurance Gateway 2 on September with independent evaluation confirming significant value for money in both economic terms and societal terms.

By March 2021, CivTech companies had created 255 jobs (gross, +38% on previous year) at an average salary of circa £35,000 per year, delivering significant tax and NI revenue and local economic impact. All lasted for more than a year and therefore will qualify for 'jobs created'. Net figures (accounting for job losses) are 239 jobs created, 29% up on the previous year. There has been a marked acceleration in investment deal flow and at March 2020 total investment into CivTech Alumni companies stood at some £4.2 million. The total now stands at over £62 million.

In addition to this, CivTech developed a proposition for a GovTech Cluster to both drive the activates in this area domestically, and to take advantage of the growing GovTech market across the world by establishing Scotland as one of the world leaders in the field.

Going forward into Government's commitment of up to £46 million funding for Challenges and £13.5 million operating costs over the lifetime of the parliament. Activity will focus on the delivery of up to 20 Challenges in year, and the investment of circa £6 million into the products developed. CivTech will facilitate the launch of the GovTech Cluster and its 'driver organisation'. It will also work in partnership with key stakeholders to develop plans for the NSET (National Strategy for Economic Transformation) Innovation Challenge Fund, to be launched in 2023-24.

AI Strategy Delivery Programme

Working with CivTech, the AI (Artificial Intelligence) Strategy Delivery Programme has taken forward a number of innovation projects to deliver commitments in the strategy on transparency and accountability of public sector algorithms. The data platforms programme has delivered a first phase analytical workbench that now supports over 100 users. Subsequent phases of the platforms programme are being scoped through a series of design workshops which are being run during March/April 2022.

Emergency Services Mobile Communication Programme (ESMCP)

The programme is led by the Home Office. The Home Office and its suppliers, EE and Motorola Solutions (MSI), are exploring changes to current contractual arrangements to ensure the best possible delivery of the Emergency Services Network (ESN). This includes maximising opportunity for sub-contraction opportunities to utilise the highly skilled small and medium enterprises (SME) supply base and maximise local supply chains, where appropriate.

Going forward, a refreshed feasibility assessment for the wider programme and a benefits realisation methodology reporting tool will be developed to highlight Scotland specific delivery. The activation of EE sites being built for ESN will provide early commercial access for local communities and businesses who otherwise have not had mobile telephony capability, thus playing a part in making the rural economy more attractive to SMEs (small and medium-sized enterprises).

Investment in ESN will mean improvements to 4G network coverage across Scotland. ESN will also enable greater access to the EE network and will complement the Scottish Governments S4GI Programme. Where users have access to other network suppliers, ESN sites will enable wider access to emergency 999 call in some of the most remote and rural parts of Scotland. The emergency services will take priority over all other network traffic even at peak times in busy urban locations. This will mean the emergency services and other first responders will have access to mission critical communications for operations and in addition, use the same secure and prioritised platform for sharing vital data information and expertise quickly and securely from the frontline when it is needed most.

The Home Office is working with their suppliers and their design teams to develop all new technology hardware to incorporate energy reducing measures, innovative product designs, minimise waste, reduce obsolescence and maximise value for money. For example, the programme is working with its suppliers to ensure technological hardware is compliant with current and future regulatory environmental requirements where appropriate. Going forward, activation of ESN sites will be compliant to environmental regulations and local planning controls. The availability of extended commercial mobile telephone network will also facilitate greater remote communications capability for local communities for personal and business purposes. Planning for solutions to be used for ESN will also continue to exploit the most efficient solutions whilst being developed to ensure the operational capabilities of the emergency services are not compromised in future use of ESN.

Strengthening Connectivity

Reaching 100% (R100)

The Reaching 100% (R100) programme emerged from a commitment, unique across the UK, to enable access to superfast broadband - speeds of at least 30 Megabits per second (Mbps) - to every home and business in Scotland. Over £600 million has been committed to the R100 contracts with additional investment also being delivered through the R100 Scottish Broadband Voucher Scheme (SBVS).

The R100 programme was able to make sure that every address in Scotland could access superfast broadband by the end of 2021 through the provision of the R100 SBVS meeting the Scottish Government policy commitment.

The R100 Central and South contracts were signed in December 2019 followed by the North in December 2020 with the overall contract build currently expected to complete in 2026-27.

The R100 contract build is well underway with connections now live in all contract areas. Airth, Dolphinton and Portlethen are just a few of the many communities where properties are now benefitting from faster broadband connections following works by Openreach. As at 31 January 2021, connections to 5,647 premises across the R100 contracts have been built.

All of the planned R100 build in the South and North contract areas and 95% in Central, will be gigabit capable – this is more than 30 times faster than the original commitment to deliver 30Mbps - a broadband speed which allows homes and smaller businesses a good overall internet experience.

The demand-led SBVS continues to provide homes and businesses access to superfast broadband where no contracted or commercial build is scheduled. As at 1 March 2022, 1,670 premises had received their superfast broadband connection courtesy of an SBVS voucher with another 1,023 in the pipeline. The interim portion of the SBVS ended on 31 March 2022 following a three-month extension; applications for the £5,000 main subsidy, continue to be accepted.

Looking forward into 2022-23, contract deployment will continue to deliver across North, South and Central. Survey work has also taken place for the delivery of 16 new subsea cables, which will provide connectivity to 15 Scottish islands. Subsea cable deployment is due to start in Spring 2022 and it is expected to be completed later in the year, subject to suitable weather conditions.

The infrastructure being delivered through the R100 programme will underpin a range of telecoms services, including broadband speeds that go way beyond the original superfast commitment. These engineering works will take time but will ensure that future-proofed and resilient broadband infrastructure reaches some of the most rural and remote areas of Scotland.

Transport (STPR2)

In 2019, Transport Scotland, commenced the second Strategic Transport Projects Review (STPR2), the first review having been published in 2008. Its aim is to help deliver the vision, priorities and outcomes that are set out in the second National Transport Strategy. This review of the strategic transport network's performance will inform transport investment in Scotland for the next 20 years (2022-2042) by providing evidence-based recommendations on which Scottish Ministers can base future transport investment decisions.

STPR2 considers the transport needs of Scotland's people and communities, and examines active travel (walking, wheeling, cycling), bus, ferry, rail and motorways and trunk roads as well as passenger and freight access to major ports and airports. These needs are reviewed from national and regional perspectives to reflect their different geographies, travel patterns and demands.

STPR2 provides an overview of transport investment, mainly infrastructure and other behavioural change recommendations, that are required to deliver the National Transport Strategy priorities and objectives of the Review.

The outcomes from STPR2 will: Help make Scotland more accessible for residents, visitors and businesses; Create better connectivity with sustainable, smart and cleaner transport options; and Highlight the vital contribution that transport investment can play in enabling and sustaining Scotland's economic growth.

The final draft recommendations were published in January 2022 for consultation with a final Report and Delivery Plan expected to be published by the end of 2022.

Roads

The Scottish Government is committed to completing the dualling of the A9 between Perth and Inverness, one of the biggest transport infrastructure projects in Scotland's history. Over £400 million has been invested in the programme to date. Work is continuing across the A9, with road users already benefiting from the dualled stretch between Kincraig and Dalraddy (operational September 2017) and between Luncarty and the Pass of Birnam, which opened fully to traffic in August 2021.

The section between Tomatin and Moy is currently in procurement and it is expected that the construction contract will be awarded in the second half of 2022. In 2022-23, we will continue to progress design work and the statutory processes for the remaining eight schemes, as well as assessing procurement options. This is a complex exercise which is considering a pipeline of work in a form that can be delivered by the industry, supports the economic recovery post COVID-19 and minimises disruption to users of this lifeline route

When completed, the dualling programme will bring many benefits to local communities, businesses, visitors and road users living, travelling and working along the corridor including reduced journey times, improved journey time reliability, improved road safety and opportunities for active travel.

The Scottish Government is also committed to improving the A96 corridor and will take forward an enhancements programme that improves connectivity between surrounding towns, tackles congestion and addresses safety and environmental issues. The current plan is to fully dual the A96 route between Inverness and Aberdeen; however, we have agreed to conduct a transparent, evidence-based review of the programme which is underway and will report by the end of 2022.

The A96 Inverness to Nairn (including Nairn Bypass) scheme is separate from the wider A96 review process which is currently being undertaken. We continue to progress the preparation stages of this scheme, which runs from Inverness to Hardmuir, to enable the completion of the statutory process.

The Scottish Government is committed to an infrastructure solution to address the A83 Rest and Be Thankful landslip risks. Delivery of a permanent and resilient solution is a priority and we will continue to seek ways to achieve that as quickly as possible, noting all of the options require complex civil engineering. We will continue to take forward the necessary design and assessment work to identify a preferred option in 2023. These options range from traditional roads with localised structural protection, to tunnel and viaduct solutions. The range of engineering structures reflects the challenge of building resilience into the route.

In recognition of the urgency to find a solution we are also progressing work to look at a medium term resilient route through Glen Croe to include consideration of the Forestry Track, improvements to the Old Military Road (OMR) and other options on land already owned by Scottish Ministers. We will bring forward our proposals for this by late 2022.

We also continue to take forward the detailed development and assessment of the preferred option for improving the A82 between Tarbet and Inverarnan.

Ferries

The Scottish Government will invest at least £580 million in ferries infrastructure over the five years of the Infrastructure Investment Plan (IIP) and this investment will deliver strengthened lifeline ferry services for our island and remote communities and businesses. In 2021-22, this commitment enabled the contracts to be signed on two major port projects at Uig (Skye) and Lochmaddy (South Uist) as well as the continuation of projects at Tarbert (Harris) and Troon. An additional vessel was bought for the Clyde and Hebrides Ferry Services (CHFS) fleet, MV Loch Frisa, and a contract was awarded for two new major vessels for the Islay routes. All vessel and harbour projects listed in the IIP are now underway as part of the long-term plan.

In 2022-23, we expect to see completion of key work elements on existing port projects and to see contracts awarded for port improvements on the Islay routes. MV Loch Frisa will complete modification works and testing and be deployed on the Craignure - Oban route during summer 2022. Work will continue on the business cases for the Small Vessel Replacement Programme and other vessel replacement projects. The long-term plan and investment programme including potential vessel deployments will be produced for consultation as part of the Islands Connectivity Plan.

Highlands and Islands Airports Limited Air Traffic Management 2030 Strategy

Following negotiations with the trade union during 2021-22 and subsequent ballot by members, Highlands and Islands Airports Limited (HIAL) are developing a business case for their proposed new strategic direction during 2022-23. The new strategic direction involves introducing a centralised surveillance operation for Sumburgh, Kirkwall, Stornoway, Inverness and Dundee airports based at HIAL's existing approach radar facility at Inverness airport. The Air Traffic Tower function and associated jobs would be retained at each of these airports. The previously proposed "Remote Tower" element would be removed.

The overall objective of the programme remains to improve safety, reliability and sustainability in order to ensure the long term continuation of air services in the Highlands and Islands. The new strategic direction is subject to approval of the business case by the HIAL Board and Scottish Ministers.

Inclusion and Growth

City Region / Growth Deals

City Region and Growth Deals are a key tool for the Scottish Government in driving inclusive growth throughout Scotland. This is achieved by working together with local partners to identify and support projects that target and address unique regional needs and concerns. We are committed to implementing Deals covering all of Scotland, allocating £1.9 billion to the programme.

City Region and Growth Deals continue to fund a diverse range of successful projects. Some of the most notable developments in the past year include:

Glasgow City Region Deal

The main span of the new pedestrian and cyclist bridge linking Sighthill with Glasgow City Centre was installed over the M8 at the end of July 2021 and is due to open in 2022. This new bridge will form an active travel route between Sighthill and the city centre and is part of the £250 million regeneration of Sighthill, the biggest such project in the UK outside of London. The new bridge will also be part of a wider active travel network connecting Sighthill, the city centre and neighbouring communities in North Glasgow.

Work is also underway on the Ocean Terminal project, which will see a brand new visitor centre created that will include a high-end restaurant, roof terrace, museum, and arrivals/departures lounge. A new 200-metre floating pontoon was completed by the port operators in 2021 as part of the overall project.

Aberdeen City Region Deal

The City Region Deal's projects supports Aberdeen in its ambition to be an energy transition capital. Significant investment in innovation, digital connectivity and infrastructure is helping to diversify and transform the region's economy.

The Net Zero Technology Centre (NZTC) is supporting the development and deployment of new technologies to achieve a just transition to net zero in energy. Cohort 4 of its TechX Clean Energy Accelerator launched in February 2022. This is giving 12 innovative clean energy start-ups support to accelerate their growth journey and help create high-skills jobs. Thirty three other start-ups have gone through the intensive 15-week since NZTC opened in February 2017.

Construction is underway for Aberdeen Biohub which is expected to open by the end of 2022. This will provide support and physical infrastructure to grow businesses in the life sciences sector. This will create high-skill jobs and bring new drugs, treatments, therapies and technology to the market.

Digital infrastructure projects have been making good progress, helping improve digital connectivity throughout the region. The City Network Extension was completed in November 2021 connecting 57 additional sites to the Aberdeen City Council fibre network. It has stimulated private investment of up to £40 million, greatly improving digital connectivity and speeds for businesses and individuals. This has helped people to work from home more effectively, accompanied by digital training sessions for sheltered housing residents to drive inclusivity.

Inverness and Highland City-Region Deal

Since the Deal was signed, 138 affordable homes have been constructed with planning approval for 312 units to date. Eleven assisted living Fit Homes are nearing completion, with a further 18 under construction. The University of the Highlands and Islands Centre for Health & Life Sciences is expected to complete construction in September 2022.

Regional Partners have estimated that the Deal will have the following economic benefits and will: help to rebalance the population with the aim of retaining and/or attracting an additional 1,500 young people in the 18-29 age group over the initial 10 year deal period; create an additional 1,125 direct jobs as a result of City-Region Deal projects with a further 2,200 additional jobs in the construction sector; help to up-skill the labour market and contribute to moving towards a high skilled high wage economy, improve productivity and real wages which are estimated to increase by an additional 1.3 per cent and bring an additional £100 million per annum to the regional economy; create 6,000 new houses over 20 years of which 1,600 will be affordable homes; and deliver private sector leverage from house building and through opening up land for commercial development, will see an additional return over a 20 year period of around £800 million being invested in the economy of the city and region.

As part of the Inverness and Highland City-Region Deal, we are progressing plans for a single carriageway road, including enhanced facilities for non-motorised users, connecting Inshes and Smithton along with the grade separation of the A9/A82 Longman Roundabout. Activity planned for the year ahead includes the detailed development and assessment work of the preferred option for the A9/A82 Longman Junction scheme along with continuing to progress the A9/A96 Inshes to Smithton scheme through the statutory process.

Edinburgh and South East Scotland City Region Deal

Construction work is near completion for the Central Borders Innovation Park, Edinburgh Futures Institute and Edinburgh International Data Facility. Dunard Centre redesign has been completed and the updated planning application has been approved by City of Edinburgh Council.

The City Region's Joint Committee have approved the proposed scheme at Sheriffhall Roundabout, which will provide a grade-separated junction designed to relieve traffic congestion and introduce new active travel facilities for walking, wheeling and cycling. During 2022-23 we will continue to progress the proposed improvements at Sheriffhall through the statutory process.

Stirling and Clackmannanshire City Region Deal

Since the Deal signed, the first three capital projects: the first phase of Scotland's International Environment Centre at the University of Stirling; the Walk, Cycle Live Stirling which connects the University and Forth Valley College to the city centre; and the Regional Energy Masterplan are all underway, with substantial progress anticipated in the coming year.

The Deal forecasts that 5,000 jobs will be created and £640 million of private investment will be unlocked.

Tay Cities Region Deal

Significant progress has been made since the Deal was signed with business case approval for over £145 million of the total capital investment, of which £44 million had been drawn down by regional partners (to end of 2021).

Key successes include a ground breaking ceremony in August 2021 for the International Barley Hub and Advanced Plant Growth Centre at the James Hutton Institute, a major milestone for these £62 million projects and the announcement in September 2021 of the first tenants for the cyberQuarter project, creating 30 jobs at their cyberQuarter Hub. Perth and Kinross Council also announced in July 2021 that they had secured the Stone of Destiny as the centrepiece exhibit of their new museum in the refurbished Perth City Hall, which is due to open later in 2022.

Regional partners are also developing a Benefits Realisation Plan to demonstrate the impact of the Deal, including progress towards inclusive growth and net zero, building on principles of good practice identified across the Deals programme.

Ayrshire Growth Deal

Since the Deal was signed, the HALO Kilmarnock project has completed and had an official opening in Spring 2022. HALO is an urban renewal project that aims to revitalise Urban Cities and Towns in the UK.

It is estimated that the Deal will create 7,000 new jobs and unlock an additional £300 million from the private sector. Scottish Government investment includes £40 million for an Economic Infrastructure Programme which includes innovative projects around engineering, manufacturing and digital automation, £30 million for an Aerospace and Space Programme and £18.5 million for tourism and regeneration.

Borderlands Growth Deal

Following the signing of the full deal in March 2021, officials continue to work with partners on the development of business cases that will deliver economic inclusive growth across the Borderlands area.

Recognising the economic and social ties between the south of Scotland and north of England and the desire of regional partners to work together on shared challenges and opportunities, the Borderlands Deal is the first cross-border Deal, delivering across five local authority areas with two in the South of Scotland. The Deal's ambition is to unlock the region's potential as an economic hub to encourage new business and job opportunities under the priority themes of Enabling Infrastructure, Improving Places, Supporting Business, Innovation and Skills, and Encouraging Green Growth.

Moray Growth Deal

Since full Deal was signed in December 2021, officials have continued to work with regional partners to further develop the detail of the projects to be supported through the Deal and to maximise inclusive growth opportunities.

As well as creating high-quality jobs and opportunities across Moray, the Deal will address key growth challenges, including keeping young people in the area to live and work, and addressing gender imbalances in key sectors of the economy to unlock future potential.

The vision for the Deal is built on four pillars; Connections; Business Support, Skills and Employability; Moray the Place/Brand; and Moray's Priority Business Sectors that will unlock investment and drive inclusive and sustainable economic growth across the area.

Regional Partners estimate that economic benefits arising from the Deal will include: directly and indirectly creating over 3,500 jobs associated with the economic benefits accrued from growth deal projects (of these, 450 jobs will be directly created as part of growth deal project delivery); attracting an additional 50,000 tourists; constructing over 300 affordable new homes; supporting 450 businesses to scale up to increase the value of the Moray economy by £82 million; creating new and improve existing facilities for businesses; and creating an enhanced culture and leisure offering for local people to make Moray a more attractive place to live and work.

Argyll and Bute Growth Deal

The Heads of Terms agreement was signed in February 2021 and officials continues to work with the partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities.

The Deal's economic development benefits and targets will be confirmed at the full deal stage. The Deal has however indicated that investment will be targeted across three key drivers: connecting high value business sectors with national and international business markets; attracting additional skills, training and learning opportunities; new residents, visitors and businesses; and growing by doing more of what works; and making more of Argyll and Bute's natural and built resources.

Islands Growth Deal

Since the Heads of Terms agreement was signed in March 2021, officials have continued to work with Islands Deal partners to further develop the detail of the projects to be supported through the Deal and to maximise inclusive growth opportunities.

The Deal has three main themes; leading the way to a low carbon future; supporting growth and future industries; and building thriving sustainable communities. It sets out a number of collaborative and Island specific proposals designed to address the islands' demographic challenges, as well as supporting business innovation and the move towards net zero.

Regional partners anticipate that the Deal is likely to create over 1,300 sustainable jobs across the three island groups aimed at retaining and attracting young talent.

Falkirk Growth Deal

The Heads of Terms agreement was signed in December 2021 and officials will continue to work with the partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities

Falkirk partners predict that the proposed interventions will generate around £802 million of GVA (Gross Value Added) uplift, approximately deliver an additional 2,000 jobs in the region and attract in excess of £1 billion of private investment.

Additional transport links alongside City Region Deals

We are progressing a range of infrastructure improvement projects related to the City Deals. In 2022-23, we will continue to progress the A90/A937 Laurencekirk Junction Improvement through the statutory process.

Stornoway Growth Accelerator

Within the last year, the tender was issued for the deep water terminal contract and a preferred bidder was identified. There was significant activity between partners to finalise funding agreements and due diligence before the contract was awarded on 31 March 2022. The Deputy First Minister took over Ministerial oversight role as Chair of the Advisory Board and the Cabinet Secretary for Rural Affairs and Islands joined the board.

Activity planned for the year ahead will focus on delivery of the contract, with the works due to conclude by December 2023. There will be regular reporting to Ministers and work will also be undertaken to ensure maximisation of benefits and implementation of any associated island infrastructure developments required to respond to the increased economic activity expected from the new terminal.

National Islands Plan – Islands Programme

The Islands Programme supports projects that encourage population growth and stem population decline; deliver on our net-zero ambitions in a way that no-one is left behind; and support a green economic recovery from the ongoing impacts of BREXIT and the COVID-19 pandemic. During 2021-22, £9.5 million was spent against the programme which was delivered through three key funding streams.

The Island Communities Fund (ICF) delivered projects that supported employment and community resilience on islands. All 35 successful applicants had to demonstrate a strong focus on developing sustainable economic activities, linked to job creation, sustainable employment and the safeguarding of jobs, while also contributing to Scotland's fair and just transition to net zero and to climate resilient living on islands.

The Healthy Islands Fund (HIF) focussed on building local capacity to increase well-being, foster connections and promote healthy and resilient islanders and communities. Each of the 56 community-led initiatives were designed to influence healthier lifestyles and facilitate or make progress towards, cultural, behavioural, environmental, and/or structural change at an island-level, linked to local priorities.

The Islands Infrastructure Fund was delivered as a direct allocation to the local authorities with islands and based on principles agreed with COSLA. A significant proportion of the funding was allocated to projects primarily identified as sustainable economic development projects, particularly in Argyll and Bute and Comhairle nan Eilean Siar areas. Key projects included the Kerrera Track upgrade and the Fair Isle Bird Observatory rebuild. Other projects included innovative seaweed harvesting; the refurbishment of several buildings as food, retail and community hubs; renewable heating solutions for business units; and ebikes and related infrastructure. A large number of the 40 reported projects feature the refurbishment or renovation of existing buildings for business, including tourism, and included carbon reduction measures.

In 2022-23, £4 million has been committed to delivery of the Islands Programme. This is being delivered in partnership with local government on a competitive bid model to support projects which use clear place-based, Community Wealth principles to support inclusive island growth while working to achieve the Scottish Government's Net Zero Ambitions. The deadline for applications is 10 June 2022 and awards will be made in the Summer of 2022. Early indications are that projects will again focus on sustainable economic activities but with an increasing focus on transport carbon reduction.

Boosting Competitiveness

Cairngorm Mountain

Significant progress was made with the funicular reinstatement works over the course of 2021-22 despite a range of technical, weather and COVID 19 related challenges which led to the overall project timescale being extended. Additional investment from Highlands and Islands Enterprise (HIE) in a new play park, camper van facility and other improvements to the resort, enabled it to continue to attract visitors. HIE also supported a major refurbishment of the Ptarmigan building into which funicular passengers will alight at the top of the mountain. The Cairngorm masterplan was published in June 2021 and sets out a long term vision and key strategies for the development of Cairngorm estate to benefit the wider economy, protect and enhance the environment and create new educational opportunities amongst other outcomes. A planning application to introduce mountain biking, a masterplan strategy, was recently approved by the national park authority.

The funicular railway is due to be brought back into service in winter 2022-23. This will enable visitors to once again easily access the top of the mountain, whether to enjoy winter snowsports or simply experience the mountain environment across the seasons. Delivery of the masterplan will also get underway with the development of mountain biking the first planned investment. HIE will be progressing the planned car park upgrade and working with the Cairngorms National Park Authority on active travel plans, visitor management from the Ptarmigan building, decarbonisation opportunities, scoping options for replacement of the Day Lodge, ongoing habitat management and restoration, and improved uplift.