Scotland 2045: fourth National Planning Framework - draft: society and equalities impact assessment

Appendix D. Island Communities Impact Assessment

Draft National Planning Framework 4

D.1. Background

This Island Communities Impact Assessment (ICIA) relates to the development of Draft National Planning Framework 4 (NPF4).

The adopted NPF4 will guide the development and use of land out to 2045. It will form part of the development plan and therefore influence more the day to day decisions on local planning matters. It will focus on our future:

• Sustainable places
• Liveable places
• Productive places
• Distinctive places

In terms of policy, NPF4 is linked to the outcomes of the National Performance Framework. It will look to rebalance our planning system so that climate change and nature recovery are the primary guiding principles for all our plans and all our decisions.

The Government's aim is also to help stimulate the green economy by facilitating innovation, greener design and place-based solutions.

NPF4 will look to deliver on six high level outcomes which include:

• meeting the housing needs of people living in Scotland including, in particular, the housing needs for older people and disabled people;
• increasing the population of rural areas of Scotland,
• improving the health and wellbeing of people living in Scotland; and
• improving equality and eliminating discrimination.

It will also include land use planning policies supporting key issues supporting island communities lives such as engagement, local living, housing, spaces and places, rural and coastal policies, health and wellbeing and connectivity.

The Islands (Scotland) Act 2018 (the 2018 Act)

The Islands (Scotland) Act 2018 provides for a duty on the Scottish Ministers and other relevant public bodies that they must have regard to island communities in exercising their functions and in the development of legislation.

The 2018 Act lists the following areas that are relevant considerations for islands and islands communities:

• Depopulation
• Economic development
• Environmental protection
• Health and wellbeing
• Community empowerment
• Transport
• Digital connectivity
• Fuel poverty
• Land management
• Biodiversity

The planning system has a role to play in the development and use of land in the long term public interest, including the future development of communities, and so has a relevance to each of the considerations listed above.

D.2. Implications of Policy Changes for Island Communities

Desk top analysis was undertaken of the evidence gathered for the development of the Planning Bill, including the equality impact assessment^[183] and ICIA^[184], plus the integrated impact assessment accompanying the early engagement^[185] on National Planning Framework 4. Additional information was drawn from Rural Planning Policy to 2050: Research to Inform Preparation of NPF4^[186], the screening ICIA^[187] on changes to Pre-Application Consultation requirements (matters pertaining to participation in planning plus digital connectivity) and Young People and the Highlands and Islands (2018)^[188]. Data was also taken from The National Islands Plan Survey Final Report (2021)^[189] and recent ICIAs for Housing for 2040 and the National Transport Strategy.

Key data from the analysis is included under the following 12 headings.

Population and demographics

Population demographics: NRS Scotland, Scotland's population has increased for most of the last 200 years and now stands at 5.47 million. Scotland's population is projected^[190] to continue increasing, but at a slower rate than in recent years. In the ten years to mid-2028, the population is projected to increase by 1.8% to 5.54 million and in the 25 years to mid-2043, it is projected to increase by 2.5% to 5.57 million.

NRS Scotland Mid-Year Population Estimates Scotland, Mid-2019 (2020)^[191] indicate that Na h-Eileanan Siar and the Orkney Islands are among the local authority areas with an older population in Scotland, with Shetland closer to the overall figures for Scotland.

The level of population change varies across Scotland's council areas, over the latest year to mid-2019, 8 council areas experienced a falling population, mostly island and rural areas, as well as areas in the west of Scotland. Those which experienced greatest population decline (in percentage terms) were:

• Argyll and Bute (-390 people, -0.5%)
• Na h-Eileanan Siar (-110 people, -0.4%)
• North Ayrshire (-540 people, -0.4%)

Areas which experienced the greatest decrease in population aged 0 to 15 were mainly rural and island areas. The five areas (Argyll and Bute, Na h-Eileanan Siar, North Ayrshire, Inverclyde and Dumfries and Galloway) which experienced the greatest decrease in the population aged under 16, also experienced the greatest decline in the population aged 16 to 64.

It went on to note that areas in the highlands and islands of Scotland had the fewest people per square kilometre:

• Na h-Eileanan Siar (9 people per square kilometre)
• Highland (9 people per square kilometre)
• Argyll and Bute (12 people per square kilometre)
• Shetland Islands (16 people per square kilometre)

Settlements data: National Records of Scotland (NRS) - Population Estimates for Settlements and Localities in Scotland, Mid-2016 (2018)^[192] states that:

"The council areas with the lowest proportion of people living in a settlement^[193] are Na h-Eileanan Siar (30%) and Shetland Islands (38%). Many communities in these islands are sparser than those in the rest of Scotland, due to crofting and other factors, and so do not fulfil the density requirements needed to be counted as a settlement."

The National Islands Plan Survey Final Report (2021) found that 86% of islanders think they are likely to stay on the island for the next five years. Residents of the Shetland Outer Isles are most likely to think they will stay (93%) and residents of Orkney Outer Isles are least likely (79%); however, this was not a significant difference. Young islanders are significantly less likely to say they will stay (71%) compared to other age groups.

A quarter of island residents agree that young people are supported to remain, move or return to the local area. Agreement with this statement was low across all age groups. Orkney Mainland (39%) and Shetland Mainland (37%) had the highest levels of agreement, although not significantly greater than other subregions.

Rural Planning Policy to 2050: Research report identified demographic trends as one of the 6 key challenges for rural areas, due to both falling population numbers and changes to the population profile. Research participants expressed concern over the capacity of rural communities to sustain themselves and to develop and grow into the future. When asked in the survey if this challenge affects all rural areas, or only certain types of rural area, the majority (65% of those who responded to this question) said it affects all areas, while 33% said it affects certain types of rural area, with particular reference to islands, coastal areas, remote areas, "areas hard to reach by road", sparsely-populated areas, fragile areas, "smaller communities" and "dispersed communities".

Economic Development (including Retail and Tourism)

The National Islands Plan Survey Final Report (2021) showed that young people (aged 18 to 35) are significantly more positive about all measures of job availability, compared to other age groups. 31% of island residents agree that there are jobs available to suit different interests, skills and ambitions in the local area.

31% of island residents agree that there are job opportunities in low carbon and renewable energy. Highest agreement was reported by residents in Orkney Mainland (76%), whilst the Argyll Islands (6%), and Bute, Arran and Cumbrae (10%) reported significantly lower agreement.

Young People and the Highlands and Islands (2018): Most young people in the Highlands and Islands want to work full time, but for nearly 40% a lack of local opportunities is a barrier. This is particularly so for females^[194], those living in remote and fragile areas and 19-24 year olds. Housing, know-how, confidence and experience were also cited as barriers to achieving employment goals by around a fifth of young people. Small businesses are relatively more prevalent as employers in rural areas, with 68% of private sector employees in remote areas working for small businesses and 54% in accessible areas, compared to 32% in the rest of Scotland^[195] There is significant appetite amongst young people to start their own business, and many feel they have the business idea to do so; however access to finance is a barrier for many young people to start-up businesses. Many young people want to work in the region but feel that there is a lack of employment and career progression opportunities compared to elsewhere, particularly within graduate posts. Lack of employment opportunities is a critical issue to be tackled to make the Highlands and Islands more attractive to young people.

Research has identified areas of Scotland that are expected to be most vulnerable to the consequences of EU Exit. An accompanying interactive map^[196] allows for more granular analysis of each datazone in Scotland.

Key findings were that:

• The risks presented by EU Exit are anticipated to have significant social and economic consequences for all areas of Scotland.
• Many of the areas most vulnerable to EU Exit are in rural locations, in particular on the Scottish islands.

Rural Planning Policy to 2050: Research report: identified structural changes in the rural economy as a key challenge for rural areas, including the islands. The rural economy is often equated with agriculture, forestry and fishing but, while this sector remains important for many areas, it no longer represents the major component of the economy. Recent Scottish Government research^[fn] has found that the contribution of agriculture, forestry and fishing to the Gross Value Added (GVA) of Scotland's Local Authority areas varies from 4% for 'islands and remote rural' Authorities and 3% for 'mainly rural' Authorities to 1% in 'urban with substantial rural' Authorities. Unemployment is lower in rural than in urban Scotland, and employment and activity rates are higher.

In terms of retail, employment and types of shops available, Understanding Scotland's Places provides data to help understand the function of towns and provides the opportunity to compare and contrast towns across Scotland. It provides data on the number of people per shop, retail sector employment and the Diversity of Retail.

This is the percentage of retail types in the town in relation to 37 different retail types) the data below is sourced from Understanding Scotland's Places, which gathers data from the Business Register and Employment Survey The higher the percentage, the greater diversity of retail types. – this shows that towns on the islands have a varying range of retail types on offer for their communities.

Fig 1. Diversity of Retail in Island Towns

Local Authority	Town	Number of People Per Shop	Retail Sector (employment) (%)	Diversity of Retail offer (%)
Argyll & Bute	Port Banntyne	302	11%	5%
	Rothesay	33	12%	46%
	Tarbert	23	16%	22%
Highland	Portree	33	8%	30%
Na h-Eileanan Siar	Stornoway	40	10%	54%
North Ayrshire	Millport	28	3%	8%
Orkney	Kirkwall	51	16%	51%
	Stromness	38	7%	24%
Shetland	Lerwick	42	8%	62%

The National Islands Plan Survey Final Report (2021): Less than a third of island residents agree that it is easy for young people (under 40) who want to live and work in their local area to do so. More than half of respondents in Orkney Mainland (53%) and Shetland Mainland (52%) agreed with this statement. These are significantly greater when compared to Skye and the Small Isles (13%) and Arran, Bute and the Cumbraes (14%). Agreement with this statement declined with age. 39% of 18 to 19- year-olds agreed that it is easy for young people to live and work in the local area, significantly more than those aged 66 and over (23%).

The National Islands Plan Survey Final Report (2021) noted that tourism was perceived as a source of job opportunities across the islands, with significantly higher perceived availability in Orkney Mainland (81%), Skye and the Small Isles (81%) and Argyll Islands (74%). The lowest level of agreement that jobs are available in tourism was reported by Shetland Outer Isles (30%).

Transport

The Transport and Travel in Scotland Results from the Scottish Household Survey 2018 (2019)^[197]: indicates in turn that older people were less likely to have travelled the previous day. Only 51 per cent of those aged 80 and over had travelled the previous day and 65 per cent of those aged 70 to 79.

That survey also identified a variation in mode of travel by age. The older age group were more likely to catch a bus than younger children (33% compared to 9%), which may indicate older populations are more reliant on public transport.

The National Islands Plan Survey Final Report (2021): There are large variations between island groups with respect to the accessibility of island transport, with patterns of use dictated by island location and infrastructure. Different patterns of transport use are notable between different age groups, with older people making greater use of local buses and mainland ferries, younger people flying to and from the mainland more often, and middle-aged residents (aged 36 to 50) making more use of inter-island ferries.

Just over a third of island residents agree that roads, paths and pavements in their local area are in good condition.

The National Transport Strategy 2: Island Community Impact Assessment^[198] (2020): Factors resulting in additional costs for households in island communities compared to the rest of the UK include:

• longer commuting distances compounded by higher fuel prices;
• issues around integrated timetabling;
• the additional cost of the need to make occasional trips to the mainland;
• additional ferry/air costs for inter-island travel.

Housing

Housing to 2040: Island Communities Impact Assessment^[199] (2021): Responses to stakeholder engagement and consultation exercises between 2018 and 2020 emphasised that the availability of affordable homes in island communities was insufficient. It goes on to note that though current policy encouraging new and improved housing is seen as a positive step, respondents reported that the availability of affordable, fit-for-purpose housing on Scottish islands presents a challenge for island communities.

Rural Research to 2050; participants highlighted the provision of adequate housing and appropriate types of housing to be a priority challenge and opportunity. Most survey participants focused on the lack of appropriate housing, especially in more remote rural areas. Many participants emphasised that the need is not a simple increase in the amount of housing, but increased availability of the right kind of housing. In particular, participants highlighted the need for affordable housing, social housing, better quality housing, sustainable housing and adapted or purpose-built housing for elderly residents. They also highlighted the challenges caused by increases in second home ownership and in the use of houses for tourism lets, which is reducing the housing stock available to residents and pushing up house prices.

Survey participants and interviewees also referred to issues relating to the financing of house building, to the identification of housing needs and to the role of planning policy in relation to housing. This included comment on the higher costs of house building in rural areas and the perception that the statutory process for assessing housing need and demand is under estimating the need and demand in rural areas.

The National Islands Plan Survey Final Report (2021) found that less than half of island residents agree that there is a variety of housing types, sizes and tenures to meet people's needs, with just over a third of island residents agreeing that there is affordable housing locally.

45% of island residents agree that self-build is a viable option for home ownership, with lowest levels of agreement in Arran, Bute and the Cumbraes (23%), and significantly higher levels in Lewis and Harris (56%).

Poverty Including Fuel Poverty

The Scottish Index of Multiple Deprivation 2020^[200] found that people who live in the most deprived areas are most likely to experience conditions which limit their opportunities in life. However, people who live in less deprived areas may also experience disadvantage. The most recent data notes that the three island authorities (Na h-Eileanan an Siar, Shetland and Orkney) have no areas among the 20% most deprived in Scotland; however, this does not mean there are no people experiencing deprivation living there. Levels of deprivation have increased in both Highland and North Ayrshire since 2016. However, none of these increases are greater than 2 percentage points

Housing to 2040: Island Communities Impact Assessment (2021): higher levels of fuel poverty and extreme fuel poverty can be found in all island containing local authorities, except North Ayrshire, compared with Scotland overall as shown in Fig 2.

Fig 2. Fuel poverty and extreme fuel poverty data in island local authorities 2017-19

Local Authority	Fuel Poor	Extreme Fuel Poor
Argyll & Bute	32%	19%
Highland	33%	22%
Na h-Eileanan Siar	40%	24%
North Ayrshire	28%	10%
Orkney	31%	22%
Shetland	31%	22%
Scotland	24%	12%

Reproduced from the Housing to 2040: Island Communities Impact Assessment Source: Scottish House Condition Survey 2017-2019

The National Islands Plan Survey Final Report (2021) showed that 71% of island residents agreed that they could afford to keep their home warm in the past year while 13% could not. Shetland Mainland had significantly lower levels of agreement (63%) than other regions. Over a third of island residents said that their home sometimes felt uncomfortably cold in the winter.

Digital Connectivity

Ofcom Connected Nation Scotland Report^[201] (2020): there are significant differences in the availability of superfast broadband in urban and rural areas of Scotland, with 98% of residential premises in urban areas having access to superfast broadband compared to 72% in rural areas. This is reflected in the superfast coverage data for local authority areas covering some of the more remote and rural parts of Scotland.

Fig 3: Residential superfast broadband coverage by selected Scottish local authority area

Local Authority	% of premises with speeds ≥ 30 Mbit/s
Orkney Islands	64%
Shetland Islands	70%
Na h-Eileanan Siar	75%
Argyll and Bute	79%
Highland	81%

Source: Ofcom analysis of operator data

Internet use: is less in older age groups than younger, and that there is a gap between premises in the islands able to access superfast and fibre broadband when compared to premises in other parts of rural Scotland.^[202]

The National Islands Plan Survey Final Report (2021): 96% of island households have access to the internet from home. Older residents, aged 66 and over, report slightly but significantly lower levels of access than other age groups, at 92%. 65% of island residents agree that their internet connection at home is fast enough to do what they want online.

Rural Research to 2050 Survey participants and interviewees identified particular issues with the communications network including gaps in mobile phone coverage and the need for improvements in internet access and, in particular, in access to high-speed broadband connections. The research highlighted that participants see the potential benefits of digital infrastructure as transformative for enabling home working, supporting rural businesses and diversification, to helping address the population issues faced in many rural areas.

Health and wellbeing

The National Islands Plan Survey Final Report (2021): 86% of island residents agree that there are places where they can go to take part in sports and physical exercise. Island sub regions differed greatly on the availability of places for sport and physical exercise, with Argyll Islands reporting lower availability than other islands with only 60% agreement. 73% of island residents agree that local sports facilities are good quality and well maintained.

Rural Research to 2050 identified the 'live-ability' of rural areas as a key challenge. This was particularly seen as being the case in Remote and Sparsely Populated areas. The lack of access to services in many rural areas can increase the cost of living and also cause disadvantage by not allowing people to participate fully in society. In comparison to those living in urban areas, rural communities can have greater responsibility placed on them to address their service challenges themselves, and this can result in inequalities because communities have different capacity to respond. The severity and nature of the challenges varies from one type of rural area to another. For example, 91% of people in remote rural areas live within a 15 minute drive time to a GP, compared with 99% in accessible rural areas and 100% of the population in the rest of Scotland. 58% of people in remote areas live within a 15 minute drive time to a secondary school, compared with 92% in accessible areas and 100% in the rest of Scotland.^[203]

Responses to the National Council of Rural Advisors' national consultation repeatedly noted challenges relating to: the availability of childcare and of healthcare services, including inadequate provision of carers; parity of costs such as fuel/heating costs and delivery costs/charges; declining high street services such as post offices and banks, and; declining resources for community spaces that support recreation and connectedness^[204]. Some participants in this consultation considered that access issues are important for tackling exclusion and inequality.^[205]

Environment and Climate Change

The National Islands Plan Survey Final Report (2021): Island residents agree that the air quality is good (98%), they see a lot of wildlife (91%) and there are green or blue spaces within a 5-minute walk of their home (91%), however just 67% of residents agree that their local environment is clean and litter free.

Data from the Third State of Scotland's Greenspace Report^[206] shows that most of the island authorities have a higher percentage of greenspace as a percentage of urban land area (>60%) compared to the majority of mainland Scotland. However, in contrast, Orkney has the lowest percentage of all the 32 local authorities (<40%).

The figures show that compared to urban Scotland, island authorities generally have a lower percentage of their greenspace as public parks or gardens, typically <1% compared with 4% in urban Scotland. Most of the island authorities have a higher percentage of natural greenspace than urban Scotland (20%), e.g. Shetland 63%, Western Isles 58% however Orkney has a lower proportion at 14%. Orkney has a higher % of its greenspace as school ground and playing fields, than the other island authorities and the urban Scotland average.

It is observed that across both urban and the island authorities, play space generally constitutes less than 1% of total green space areas; with Orkney showing 1%.

15% of island residents have installed equipment to generate renewable energy for use in their home. Proportions are significantly higher in Orkney Outer Isles (36%) and Orkney Mainland (22%) than other island regions.

Survey participants from the Rural Planning Research to 2050: highlighted the opportunities for employment in areas driven by climate change mitigation, such as forestry and peatland conservation. There was also mention of the opportunities in moves towards "eco-friendly living" and in delivering public goods such as ecosystem and environmental conservation and enhancement, with support in the form of public funding for farmers.

Historic Environment

Historic environment assets make an important contribution to island communities, promoting a sense of belonging and cultural identity. The number of 'buildings at risk' identified in island towns according to USP^[207] is below:

Fig 4: Island Towns: Buildings at Risk

Rothesay	Tarbert	Port Banntyne	Portree	Millport	Kirkwall	Stromness	Lerwick	Stornoway
19	0	5	1	6	7	3	4	6

The Buildings at Risk Register^[208], maintained by Historic Environment Scotland, provides information on properties of architectural or historic merit that are considered to be at risk.

Community Empowerment

The National Islands Plan Survey Final Report (2021): Island residents generally perceive that they have little influence over decisions made by local and national organisations, and more influence over community organisations and community councils, particularly in the Outer Isles of Orkney and Shetland, where around half of residents feel they can influence decisions made by their community council. 42% of younger people (aged 18 to 35) compared to 30% of older people (aged 66 and over) report that they can influence decisions made by community organisations such as Development Trusts and community groups.

Young People and the Highlands and Islands (2018): levels of community participation varied by geography, with the highest levels reported by young people in Orkney (81%), Shetland (72%) and the Outer Hebrides (70%).

Arts and Culture

Young People and the Highlands and Islands (2018): Young people in island communities seem to engage more frequently than young people in other areas with arts, leisure and culture. This may reflect ease of access to outdoor activities and attractions, but also a sense of making the most of what is available when it is available. In general, barriers relate to limited accessibility rather than the quality of amenities or a lack of interest amongst young people. The main barrier to taking part in arts, leisure and cultural activities is a lack of local availability. Cost and a lack of transport to reach them were also frequently cited.

The National Islands Plan Survey Final Report (2021): Experiences of culture and language vary considerably across island groups, age groups and genders, with different patterns of cultural participation and perceptions of the extent to which island culture is supported. Of note, residents of Orkney Mainland and Shetland Mainland are most likely to feel that there is investment in cultural and historic places, and that islanders' creative talents are supported and nurtured.

Housing to 2040: Island Communities Impact Assessment (2021): participants in rural areas and islands generally highlighted the need for more amenities in rural and island towns, particularly for young people.

Education

The National Islands Plan Survey Final Report (2021): Perceptions of the quality of education available locally are very positive with regard to primary education but decrease notably in some islands in relation to secondary education, likely due to limited subject availability. Agreement rates with respect to college and university education and professional qualifications are successively lower, with more positive perceptions among those living in island groups where there are small towns.

D.3. Consultation

The Scottish Government has so far undertaken two rounds of consultation. An NPF4: Call for Ideas was undertaken over Spring 2020. This was followed by consultation on an NPF4: Position Statement over Winter 2020 / Spring 2021. Accompanying these two documents was an NPF4: Integrated Impact Assessment which provided the evidence base for societal impacts, including potential impacts on island communities.

The NPF4: Call for Ideas included a Scotland2050 Roadshow. Events were planned for Bute, Orkney, Shetland mainland and Stornoway in February / March 2020. Due to the impact of the COVID-19 pandemic, the events in Shetland and Stornoway were unfortunately cancelled. In response to an individual request, a meeting was also held on Skye to discuss accessibility issues.

In response to the Call for Ideas, the Scottish Government's recognition of the particular planning-related challenges and opportunities arising from the special circumstances of island communities was welcomed. In the drafting of NPF4, there was a call for the Scottish Government to continue to take the unique character and setting of island authorities into consideration, including by 'islands proofing' NPF4.

The Call for Ideas highlighted a number of policy areas where Island communities are facing unique challenges, including issues around housing, population decline, coastal planning and the need to ensure that local services meet the needs of communities and businesses. Some respondents highlighted the recommendations made in the Island Communities Impact Assessment that accompanied the Planning (Scotland) Act 2019.

The NPF4: Position Statement was published in November 2020. It reflected on the wealth of information received through the Call for Ideas engagement programme. It recognised the need for the active promotion of working and living in rural Scotland and the islands.

Responses^[209] were received from five of the six island authorities plus businesses and representative bodies with an interest in island matters such as fisheries, aquaculture and renewable energy. Key issues raised included:

• the economic significance of the food and drink sector, particularly for rural and island communities.
• rural and island communities are very varied in terms of the scale and type of development that may be sustainable. The need to ensure that development is supported by sustainable infrastructure, including transport and digital connectivity.
• how the 20 minute neighbourhood concept would apply, or not, in a rural or island context.
• the critical importance of good digital infrastructure, particularly for remote rural and island communities.
• support for a change of policy approach to actively promote working and living in rural and island areas.

In addition to the formal consultation, we commissioned PAS to undertake workshops with communities and youth groups across Scotland. Community representatives noted that fuel and transport poverty lead to inequalities and affect islands disproportionately.

PAS worked with organisations such as the Orkney Youth Forum in developing its NPF4 Youth Engagement Report^[210]. The report concluded that, following discussion with approximately 200 young people located across Scotland (from the Scottish Borders to Orkney), that the responses generally do not differ significantly according to location. There were concerns linked to the climate change agenda as well as specific requests for more protection of the current environment for young people. Any new development needs to be accessible for all and located where there is other social provision. Rural and remote areas need reliable electricity and broadband links in order for people to be able to work from home and to have social (virtual) interaction. Overall, the young people would like to see improvements; from their local neighbourhoods which could be implemented over a short period, to implementation of renewables, to housing, and to have a discussion on flexibility in future workplaces. They also understand the built environment and planning system have far reaching impacts regarding climate change, wellbeing and addressing inequality.

We also commissioned research on Rural Planning Policy to 2050 to inform the preparation of NPF4. The research explored, from a land use planning perspective, the current challenges and the future opportunities for land use diversification in rural Scotland. It considered how planning policy can support strong and vibrant rural communities and economies in the coming years. The research included an extensive literature review, and a programme of stakeholder engagement, including an online survey, phone interviews and workshops.

There were relatively few comments on the IAA Update Report accompanying the Position Statement, albeit a number of respondents expressed broad support. It was suggested that national-level data could miss or conceal local issues and that regional and locally granular data be used as far as possible.

In July 2021 the Scottish Government published The National Islands Plan Survey Final Report. The report, based on 4,347 people's responses to a survey from 59 islands, provides baseline data against which to measure the effectiveness of the National Islands Plan. The report provides a valuable resource on the perceptions of island communities. It covers key areas of importance to the planning system and its interaction with island communities namely:

• Population
• Economic Development (including Tourism)
• Transport
• Housing
• Fuel Poverty
• Digital Connectivity
• Health and Wellbeing
• Environment and Climate Change
• Community Empowerment
• Arts and Culture
• Education

D.4. Potential issues and mitigation

Scotland's north and west coast and islands will be at the forefront of our efforts to reach the Scottish Government's target of net zero emissions by 2045. Draft NPF4 provides for a specific spatial strategy which recognises the diversity of this area, from Shetland and Orkney in the north, to the Outer and Inner Hebrides and the coastal areas of Argyll and Bute and Highland. The relatively high levels of community land ownership and strong ties with the land and sea reflect the area's strong sense of place and local resilience.

From the evidence set out so far, the main potential issues for island communities appear to be a lack of:

• support for young people to remain, move or return to the islands;
• employment, training and higher education opportunities;
• access and affordability to transport
• a variety of housing types, sizes and tenures to meet people's needs and a lack of affordable housing;
• speed and reliability of internet/ phone connections;
• influence over decisions made by local and national government; and
• adequate infrastructure for the number of tourists attracted to the islands.

NPF4 will seek to tackle these issues through the spatial strategy and thematic policies while providing flexibility at the local development plan stage for local and specific island circumstances to be recognised.

Support for young people to remain, move or return to the islands

• To reverse past depopulation, planning can help to sustain communities in more peripheral and fragile areas in a way that is compatible with our low carbon agenda and resilient to climate change impacts.
• Local liveability will benefit people as well as the planet. Island and coastal communities will need a bespoke approach to building networks of 20 minute neighbourhoods to further strengthen their long term resilience and self-reliance. To facilitate this bespoke approach, local development plans should apply the concept of 20 minute neighbourhoods in the spatial strategy through site briefs or development proposals. With the concept applying differently in rural and urban areas.
• Island and coastal communities will need a bespoke and flexible approach to the concept of 20 minute neighbourhoods, for example by identifying service hubs in key locations with good public transport links. Hubs can sustain a range of functions. Ports and harbours can be a focal point for electric vehicle charging as well as employment. Sustainable and fair access to affordable healthier food will support future resilience and broader objectives including reduced child poverty and improved health outcomes.
• Taking an infrastructure first approach will support the provision of the infrastructure, services and facilities that are necessary to create liveable and sustainable places. It can also support our drive towards a more sustainable approach to infrastructure, making better use of existing assets and prioritising low-carbon infrastructure, supporting Scotland's transition to net zero.

Employment, training and higher education opportunities

As a result of its natural advantages, the area is growing its research excellence, and innovation centres are emerging on Orkney, Shetland and the Outer Hebrides, as part of the Islands Growth Deal, that will form a planned joint Islands Hub for Net Zero.

• Sea ports are a focus for investment in the blue economy and further diversification of activities could generate additional employment across the area. Potential for business development ranges from long-distance freight to supporting the cruise and marine leisure sectors and decommissioning opportunities. New infrastructure and repurposing of land will help to shift industrial activity towards supporting the offshore renewables sector.
• Regionally and locally there is a need for smaller scale investment across the area to put in place low maintenance, carefully designed facilities which better support and manage the impact of informal tourism including camping, campervans and day trips. This should reflect the scale and nature of operators including community trusts. Efforts to provide access to education and build skills locally will also support this, with key projects including plans for the redevelopment of the Shetland Campus.

Access and affordability of transport

• Communities will need resilient transport connectivity to maintain accessibility and lifeline links and further innovation will be required to help modernise connections and decarbonise transport systems. A net zero islands air network and decarbonisation of ferry services will help to secure the viability and service stability of island and remote coastal communities. Communities are keen to explore long term ambitions for fixed links for example across the Sound of Harris and Sound of Barra, and potentially to connect the Outer Hebrides to mainland Scotland. An Islands Connectivity Plan will consider the role of ferries, fixed links and low carbon aviation in securing lifeline links and marine access for both leisure and freight.
• To provide a local focus, local development plans should be informed by an appropriate and effective transport appraisal. Plans should be informed by evidence of the area's transport infrastructure capacity, and by an appraisal of the plan's spatial strategy, and reasonable alternatives to it, on the transport network.

A variety of housing types, sizes and tenures to meet people's needs and a lack of affordable housing;

• Scotland's National Islands Plan^[211] aims to grow the population and economy, improve transport and housing, and ensure island communities are served by the facilities, jobs, education and services they need to flourish Communities will need greater choice and more flexible and affordable homes to support varying needs. This can be achieved to an extent by refurbishing the existing building stock to reduce the release of embedded carbon, as well as by delivering more affordable, energy efficient new homes.
• There is a clear need for affordable housing provision across the region to improve choice and access to homes, and in some areas to help offset the impact of second home ownership and short term lets on the market. Local solutions may include key worker housing, temporary homes for workers in remote areas, self-provided homes, including self-build and custom build.
• Continued innovation of holistic place based solutions, such as the Rural Housing Initiative, will be required to create homes that meet diverse community needs, including homes for an ageing population and to help young people to stay in or return to their communities. Greater efforts to ensure young people have more influence in decisions that affect their future places could support this, as well as helping more people access land and crofts and the reuse of abandoned buildings and sites where appropriate.

Speed and reliability of internet connections;

• Improved digital connectivity is a priority to sustain current businesses and create 'smart' communities. We are committed to investment in ultrafast broadband to ensure every property is connected and to improve mobile coverage. This will unlock opportunities for rural businesses and remote working, and make future community growth more feasible. Full benefits will be realised by actively tackling the digital divide by building skills, literacy and learning and addressing the financial barriers to internet access. Key projects include the Outer Hebrides Giga Fibre Network and the North Isles Fibre Project.
• A local focus will be provided as local development plans Local development plans should support the delivery of digital infrastructure, particularly in areas with gaps in connectivity and barriers to digital access. Development proposals that deliver new digital services or provide technological improvements, particularly in areas with no or low connectivity capacity, should be supported.

Influence over decisions made by local and national government

• A place based approach is at the heart of creating a more sustainable and fair Scotland. The planning system should apply the Place Principle which commits us to take a collaborative place based approach to future development. This must involve working with stakeholders and local communities to create liveable, healthier and sustainable places that improve lives, builds economic prosperity and contribute to net zero and environmental ambitions.
• People living and working on islands are best placed to help decide how their communities can grow in a way that meets their needs and so it is essential they are involved in planning their future development. The introduction of Local Place Plans should support island communities in developing their aspirations. The ICIA^[212] accompanying the recent consultation on Local Place Plan regulations noted examples of community led planning in island communities across all six island authorities.

Adequate infrastructure for the number of tourists attracted to the islands.

• Targeted investment in tourism infrastructure will ensure the coast and islands can capitalise on their rich cultural heritage and historic environment assets to support better quality and more stable jobs in the sector.
• Regionally and locally there is a need for smaller scale investment across the area and in other parts of Scotland to put in place low maintenance facilities which better support and manage the impact of informal tourism including camping, campervans and day trips.
• Tourism and access to the outdoors can benefit from continued investment in supporting tourism and access to the outdoors by sustainable modes with a range of projects emerging at a regional scale.
• As noted above, there is a clear need for affordable housing provision across the region to improve choice and access to homes, and in some areas to help offset the impact of second home ownership and short term lets on the market.
• For a local focus, proposals for new homes that improve affordability and choice should be supported. An equalities led approach to addressing identified gaps in provision should be taken, informed by the Evidence Report or Local Housing Strategy, whichever is latest. This could include: self-provided homes; accessible, adaptable and wheelchair accessible homes; build to rent; affordable homes; a range of size of homes such as those for larger families; homes for older people; people undertaking further and higher education; and other specialist groups.

D.5. Conclusion

Draft NPF4 brings together people's thoughts, views and aspirations for how Scotland should develop out to 2045. The evidence from those living in our island communities has helped to develop our understanding of how Scotland can develop, reflecting the specific circumstances of island communities.

This draft is subject to Parliamentary scrutiny and further public consultation.

We consider that the island focussed element of the spatial strategy, combined with the scope for underlying local policies to fit with local circumstances, will achieve beneficial impacts for different island communities. However, we will undertake further consultation with island communities to seek to maximise these benefits. A final assessment of the impact of these policies will be published alongside the adopted NPF4.

Planning and Architecture Division
Scottish Government
November 2021