SIC leader thinks Labour government will recognise importance of Fair Isle ferry project

SHETLAND Islands Council (SIC) leader Emma Macdonald has offered reassurances over the government funding pledged for the Fair Isle ferry replacement project amid looming budget cuts at Westminster.

It comes after questions were raised over the £27 million Levelling Up funding pledged by the previous Conservative government as the new Labour regime prepares to reduce spending.

At a meeting of the SIC’s development committee on Wednesday, Labour councillor Tom Morton asked if there were doubts over whether the funding will still come Shetland’s way.

Development director Neil Grant said the SIC maintains “fairly regular” dialogue with the UK Government’s department for transport on the Fair Isle project.

He told a meeting on Monday the council has yet to receive a formal answer on a request to extend the funding deadline, which is currently set for spring 2026.

At Wednesday’s meeting Grant said he felt the dialogue with government was “established”.

The plan is to get a full business case on the project to councillors for decision in December before it goes on to the government for approval.

“I guess ultimately we’re not going to know until we get that full business case decision,” Grant said.

Morton said “massive cuts are undoubtedly going to happen” as the Labour government tries to cut spending in its October budget.

Meanwhile leader Macdonald said she previously engaged with the government prior to this year’s election to stress the importance of the Fair Isle ferry project.

“I would like to think the new Labour government will recognise how important this is for Shetland and we will see some positive news coming forward soon,” she added.

The project involves both a new vessel and harbour infrastructure at Fair Isle and Grutness in Shetland’s South Mainland, with contracts for both elements currently out to tender.