National Islands Plan: annual report 2023

Population Levels

Strategic objective 1 – Address population decline and ensure a healthy, balanced population profile

Implementation Route Map 2023

• We will continue to utilise and promote the Scottish Island Regions (2023) geography, a grouping of Scotland’s islands into nine different island regions. This new geography is based on the Scottish Island Regions Framework (2020) initially developed by the James Hutton Institute (JHI) and used as the basis for the National Islands Plan Survey (2020). Grouping islands together into regions is one feasible way to provide aggregate statistics on the Scottish island population, overcoming the challenge that many of the islands are very sparsely populated. Using this new grouping will mean that National Records of Scotland will be able to produce Scottish Island population data every year. By continuing to promote this new data-zone based geography, it is hoped that other types of data such as house prices will also be available at the Island level.
• Retaining and attracting young people is one of the key objectives of the Islands Growth Deal. Both the Scottish and UK Governments are each investing up to £50 million in the Deal. Full Deal Agreement for the Islands was signed on 20th January 2023, and the Deal will be delivered over the next 10 years.
• The Scottish Government is also contributing £25 million to the Argyll and Bute Growth Deal, £135 to the Inverness and Highland City Region Deal and £103 million to the Ayrshire Growth Deal, which all include projects helping to drive sustainable and inclusive growth across Scotland’s islands. The Argyll and Bute Deal consists of projects and programmes spanning sustainable tourism, digital, business innovation, housing, skills, aquaculture, low carbon and regeneration.

Commitment 1.1 Identify islands where population decline is becoming a critical issue in order to ensure that these islands have their needs addressed.

Scottish Islands Data Dashboard

The Scottish Islands Data Dashboard Report and interactive dashboard were published in December 2023. This dashboard brings together Scotland’s island-level data indicators, and the accompanying report draws out key findings relating to each of the strategic objective topic areas set out in the National Islands.

The recent release of the Scottish Islands Region Geography has facilitated new islands evidence sources, including the National Records of Scotland Scottish Island Regions population dashboard, household estimates occupied and vacant dwellings data publication and the Sub-Scotland Economic Statistics database. Charts on households (including second homes and vacant properties) have now been added to the NRS Island regions interactive dashboard.

Addressing Depopulation Action Plan

The Scottish Government published the Addressing Depopulation Action Plan on 16 February 2024, outlining a strategic approach to supporting local communities facing population decline, with a specific focus on rural and island depopulation and the sustainability of island communities. For more information, please see commitment 1.3.

The Scottish Government’s Ministerial Population Taskforce, chaired by the Minister for Equalities, Migration and Refugees is progressing all 36 actions of the Population Strategy. In 2023, the Taskforce oversaw the development of the Talent Attraction and Migration Service for Scotland, set to launch in 2024.

Highlands and Islands Enterprise (HIE) leads a population working group attached to the Convention of the Highlands and Islands advocating for communities facing population decline by addressing housing, connectivity, transport, health, childcare, and employment challenges.

Funded by Scottish Government and local authorities with support from HIE, the group ran a ‘Settlement Officers’ project in Uist, Northwest Highland, and Argyll and Bute to combat population decline. The Uist officer addressed 310 queries as of 15 January 2024, providing relocation advice and assistance to 26 families or individuals. In Argyll and Bute, the officer conducted a detailed community assessment and survey. Each settlement officer worked to improve the digital footprint of their communities, supporting population attraction and retention initiatives.

Islands Growth Deal

The Islands Growth Deal is now in its delivery phase, driving sustainable, inclusive economic growth across Orkney, Shetland, and the Outer Hebrides, while investing in people, projects, and priorities to increase opportunities for all.

It is jointly funded with investment of £50 million from the Scottish and UK Governments, with the Full Deal agreement signed on 20 January 2023. This is a significant milestone, which will see funding for individual projects and programmes released once Full Business Cases have been approved.

The Deal seeks to leverage the islands’ assets and opportunities to transform their economies and change their demographic trajectory. It aims to deliver up to 1,300 jobs by 2032, attracting people to the islands and helping them to be among the first places in the UK to achieve net zero.

The Scottish Government will invest in thirteen of the Deal’s sixteen projects, focusing on three key themes:

• £16 million for three projects in the Low Carbon theme, which will contribute to our net zero commitments by supporting energy transition, delivering port infrastructure for decommissioning, and piloting decarbonisation in an island context.
• £15.5 million for six projects in the Growth and Future Industries theme, developing island tourism, cultural assets, and innovation in key space, food and drink and creative industries.
• £18.5 million for four projects in the Thriving Sustainable Communities theme: expanding learning facilities, providing sustainable housing, and investment in a skills programme for key sectors including decarbonisation and renewable energy.

Two crucial projects are being delivered to address demographic challenges:

• The Islands Centre for Net Zero, which aims to drive decarbonisation, create sustainable, well-paid jobs and reduce fuel poverty and costs associate with island living.
• The Outer Hebrides Campus Redevelopment, which will improve the islands’ education and skills offer to attract and retain young people.

Argyll and Bute Growth Deal

The Argyll and Bute Growth Deal will promote economic growth, benefitting individuals, businesses and communities. It will use the area’s natural marine resources to develop the aquaculture industry, enhance sustainable tourism, offer training opportunities and creating high value jobs. The Deal has three main themes:

1. Connecting: Improving physical and digital infrastructure to strengthen communities and support their high value and growth sectors to connect with national and international business markets;

2. Attracting: Providing skills, training and opportunities to attract and retain young talent and boosting the tourism offering.

3. Growing: Doing more of what works by making more of their resources and supporting innovation and growth.

Commitment 1.2 Understand the impact of Brexit on islands and island communities.

The Scottish Government continues to closely monitor the multifaceted impact of Brexit on islands, their communities and economy.

The latest Highlands and Islands Enterprise Business Panel published in January 2024, reflects survey findings conducted between November and December 2023. The report emphasises ongoing Brexit-related concerns, such as increased costs, delivery delays, and more red tape for regional businesses.

The food and drink sector, well represented on Scottish islands, faces disrupted supply chains, new trade barriers and higher food prices.

The loss of EU funding continues to hinder sustainable economic growth on our islands and proposed rural funding from the UK Government is not enough to replace lost EU funds. Scotland will lose around £93 million from 2021-22 to 2024-25.

The UK Government’s Levelling-Up support fails to consider Scotland’s unique economic circumstances, specifically for rural and sparsely populated regions by utilising a methodology of metrics for prioritisation which fails to take into account Scotland’s distinctive needs.

Due to Brexit, Scotland’s island communities no longer have access to important EU programmes such as Atlantic Area, North West Europe, North Sea, URBACT, and INTERREG Europe. However, the Scottish Government strives to support organisations on the islands to maintain valuable relationships with European partners facing similar environmental and social challenges.

The end of freedom of movement is another unwelcome consequence of Brexit, compounding the population challenges experienced by some island communities.

In September 2022, the Scottish Government proposed a Rural Visa Pilot, based on the UK Government’s Migration Advisory Committee (MAC) recommendation to attract migrants to rural areas. Working with local authorities and business organisations, the Scottish Government’s Expert Advisory Group on Population and Migration have designed a practical and deliverable proposal to facilitate migration to rural communities.

The Rural Visa Pilot was endorsed by a clear majority in the Scottish Parliament, showing strong cross-party support for differentiated migration schemes that reflect the unique demographic needs of rural and island communities.

Following this endorsement, the Cabinet Secretary for Rural Affairs, Land Reform and Islands wrote to the Home Secretary, requesting collaboration between the UK and Scottish Governments and local partners on the migration scheme. Although a formal response is pending, there has been ministerial engagement in support of the proposal, including with Scottish and UK parliamentary committees. The MAC’s Annual Report described the scheme as “sensible and clear in both scale and deliverability” and noted it would be within the UK Government’s interest to trial it.

The Scottish Government is developing a Talent Attraction and Migration Service to launch in 2024. This service supports the Scottish Government’s population strategy, which addresses challenges faced by island communities. It aims to address demographic pressures by welcoming workers with the skills that our economy needs.

The service will aid Scottish employers and for those wishing to set up in Scotland to navigate the UK’s immigration system to address Scotland’s skills and labour needs.

It will also provide reception support for people moving to Scotland, including those who have chosen to make the islands their home, through providing information and advice for migration, relocation and community integration.

Commitment 1.3 Develop an action plan to support repopulation of our rural and island communities and work with partners to test approaches using small-scale pilots.

Implementation Route Map 2023

• We are currently developing a strategic plan aimed at providing the policy framework to enable population retention and repopulation across rural and island communities. This work will include:
  • Mapping levers currently used by Scottish Government (strategies, funding, planning regulations) and the limitations of our approach at present;
  • Commissioning research and evidence building to mainstream population, depopulation, and repopulation across government policy in future;
  • Setting out current engagement with key partnerships (Convention of the Highlands and Islands, Convention of the South of Scotland, COSLA);
  • We aim to publish the Addressing Depopulation Action Plan in Autumn 2023.

This commitment is now fulfilled

The Scottish Government developed an Addressing Depopulation Action Plan to enable population retention and repopulation across rural and island communities. It was published on 16 February 2024.

For the purposes of the Action Plan, addressing depopulation is defined as follows:

• identifying the spectrum of factors influencing depopulation at community level;
• highlighting the role of regional and local actors in supporting communities and economies to thrive;
• setting out how the Scottish Government will support the objectives of local communities.

The Scottish Government has taken a genuine partnership approach to the development of the Action Plan to support communities to thrive, aligning with the Verity House Agreement’s maxim of ‘local by default, national by agreement’.

We worked closely with depopulating local authorities, directly and through the Scottish Government/COSLA population policy roundtable. We also consulted the Convention of the Highlands and Islands (COHI) and Convention of the South of Scotland, building on previous collaboration.

Additionally, external organisations like Bòrd na Gàidhlig, COSLA, Highlands and Islands Enterprise (HIE) and the James Hutton Institute were invited to join a working group.

The Scottish Government is clear that the publication of the Action Plan represents the first phase of a longer-term programme of work and will establish an Addressing Depopulation Delivery Group to monitor progress on delivery of the Action Plan.

Addressing Depopulation Fund

As part of our commitment to acknowledge the role of local leadership in addressing depopulation, the Scottish Government will launch an Addressing Depopulation Fund from April 2024, to enable communities to trial bespoke pathfinder measures intended to support population attraction and retention within their local area.

The Fund will initially select three local authorities to receive £60,000 each in financial years 2024-25 and 2025-26. It is anticipated that, as well as supporting specific challenges within communities, the interventions will also generate learning which will be more broadly applicable across Scotland.

Settlement Officers

The Scottish Government has provided £67,500 in the 2023-24 financial year to part-fund the extension of an existing network of Community Settlement Officers, in partnership with the three local authorities in which they are based (Argyll and Bute, Highland and Comhairle Nan Eilean Siar). These roles support people who are currently living in or are moving to the areas, and involve working with agencies and other organisations to tackle challenges people face when moving into the area.

Conversations are ongoing between the Scottish Government and host local authorities about maintaining existing roles in the next financial year.

Commitment 1.4 Work with young islanders to identify actions to encourage them to stay on or return to islands.

Implementation Route Map 2023

• The Young Islanders Network (YIN) was officially launched by the Cabinet Secretary for Rural Affairs and Islands on Orkney in August 2022, providing children and young people with a platform to support meaningful contributions to National Islands Plan (NIP) delivery and to their current and future life on islands. YIN members are empowered to set their own agenda based on how they want to address the local and national priorities that matter to them the most. At the launch event, Ms Gougeon formally invited YIN representation onto the National Islands Plan Delivery Group. This will ensure that through the Network, the voices of young people are heard and they genuinely shape the delivery of the commitments within the Plan, which will include input that helps to influence a broad range of actions that support and encourage young islanders to stay on or return to islands.
• Work on the Student Retention project is continuing. Student Retention aims to encourage students to remain in Scotland (and rural locations/move to islands) after completing study – this applies to any students from Scotland or the rest of the UK. Working with young islanders will help us develop our understanding of what would make them want to stay or return after study.

In 2023, the Scottish Government continued to support the Young Islanders Network (YIN) to ensure that the views, recommendations and ambitions of young people living on Scottish islands are heard as part of the design and delivery of initiatives that support them to stay or return to islands.

YIN members are empowered to set their own agenda, based on how they want to address the local and national priorities that matter to them the most.

In October 2023, YIN published their Transport Challenge Report and are now carrying out follow up discussions with Scottish Government officials, public agencies and other relevant stakeholders to set out the issues and proposals identified in the report.

The YIN also launched a consultation in relation to their Housing Challenge, designed and shaped by the membership. Aimed at people aged 12-25, the consultation has attracted over 60 responses. YIN’s Senior Development Worker also led a housing session at the Scottish Rural and Islands Youth Parliament in Fort William in November 2023.

YIN members’ views are valued by public bodies and local decision makers who involve them in program reviews and new project developments. For example, the Ferries Communities Board and Tiree Community Development Trust have welcomed young islanders onto their boards. YIN members are gaining confidence in sharing their voices within their communities, alongside ongoing efforts to ensure engagement remains relevant without overwhelming them.

Youth workers and members of wider islands communities have praised the positive impact that YIN membership has had on young people. For instance, YIN engaged with some young people who are home schooled and experience isolation. This has led to increased confidence and enthusiasm as well as new skills and a reduced feeling of isolation.

Please see commitment 2.2 for more information on student retention initiatives.

Commitment 1.5 Fully consider policy developments, such as the findings of the Scottish Government research “rural planning to 2050” when ensuring that the needs of Scotland’s islands are taken into account by the Ministerial Task Force on Population. Commitment fulfilled

Commitment fulfilled – This commitment was fulfilled in 2020. Please see the National Islands Plan Annual Report 2020 for further details.

Commitment 1.6 Ensure that policies aim to retain and attract Gaelic speakers to live and work in Gaelic speaking island communities.

Implementation Route Map 2023

• Ongoing completion of Island Communities Impact Assessments by relevant authorities, will support this process following the 2022 update to the ICIA Guidance and Toolkit.
• Established quarterly meetings between the Gaelic and Scots Team, the Islands Team and Bòrd na Gàidhlig will continue.

The Scottish Languages Bill was introduced to the Scottish Parliament at the end of 2023. A key commitment included in the Bill concerns the establishment of Areas of Linguistic Significance for Gaelic, which will aim to build on existing initiatives to support Gaelic and to retain and attract Gaelic speakers to live and work in island communities. An Island Communities Impact Assessment for the Scottish Languages Bill: Island Communities Impact Assessment has been completed.

Several Gaelic bodies are based on islands, retaining and attracting Gaelic speakers. Local authorities and public bodies operating in these areas have published plans to support the learning and use of Gaelic.

There is also a significant commitment to Gaelic medium education in these island communities which also contributes to retaining and attracting Gaelic speakers.

Since 2019, the Scottish Government has provided support for Gaelic bodies and initiatives active in island communities. This includes support for Gaelic medium education, MG ALBA, Bòrd na Gàidhlig, Sabhal Mòr Ostaig, Storlann, and others.

Commitment 1.7 Work with policy colleagues to produce a National Development Plan for Crofting which will set the long-term strategic direction for crofting – highlighting the core elements necessary to ensure crofting remains at the heart of our rural and remote communities.

Commitment fulfilled – This commitment was fulfilled in 2021. Please see the National Islands Plan Annual Report 2021 for further details.

Commitment 1.8 Work with the Crofting Commission to encourage a healthy turnover of croft tenancies on our islands to create opportunities for new people into crofting.

Implementation Route Map 2023

• The Commission will further expand its Residency and Land Use team, enabling it to increase its work in addressing absenteeism and bringing crofts back into active use, which will create opportunities for new entrants.
• The Crofting Commission has also created a Crofting Development Team and has employed officers based in the Western Isles who will continue to engage with crofting communities and grazings committees to encourage active croft use and identify opportunities for new entrants.

In October 2023, the Crofting Commission launched a croft succession pilot across Uist, Barra and North-West Sutherland to tackle barriers and promote croft succession – particularly living succession. The pilot aims to identify opportunities for new entrants and to target new approaches aligned with the National Development Plan for Crofting.

In 2023, the Commission collaborated with the Scottish Land Matching Service (SLMS) to introduce the SLMS Crofting Resource, allowing people interested in crofting to register for opportunities with the SLMS database free of charge.

The Commission is growing its Residency and Land Use Team to boost enforcement efforts, target absenteeism, and revive unused crofts. The Commission will broaden the scope of the team to include owner-occupiers of vacant crofts, and will take action against those who are not resident on their croft and/or not cultivating it. Tackling absenteeism will make more crofts available for new entrants, supporting both population retention and the local economy.

The Commission has also expanded its Western Isles-based Crofting Development Team, which is working with island crofting communities to encourage occupancy and active management of common grazings. The officers have been key in driving forward the Commission’s croft succession project and collaboration with the SLMS.

The Commission have reported around five hundred new crofting entrants each year. From April 2022 to March 2023, there were over 500 new entrants, over 52% of whom are island crofters. 45% of the new entrants were female, and over 29% were aged under 40.

Since 2019, the Scottish Government supported crofting and croft businesses in island communities through grants like the Croft House Grant, Crofting Agricultural Grant Scheme (CAGS), Less Favoured Area Support Scheme (LFASS), Basic Payment Scheme (BPS) and Greening, and the beef and sheep schemes.

Since 2019, of the £15.2 million in CAGS funding, over £9 million has supported over 1,400 island croft businesses, over £3.3 million has been approved under the Croft House Grant for 112 island crofters. This has supported 60 new houses and 52 house improvements in island communities. Since 2020, the Scottish Government raised the Crofting Commission’s budget by 38%, allowing for more staff, development, and regulatory improvements.

Commitment 1.9 Continue to provide support for island crofters to make improvements to their crofts and help to sustain their businesses, these will include Croft House Grant Scheme, Cattle Improvement Scheme and other crofting support mechanisms.

Commitment fulfilled – This commitment was fulfilled in 2020. Please see the National Islands Plan Annual Report 2020 for further details.