Politics / Government ‘committed’ to islands deal funding

10 October 2024 09:20

A group of people sit at a long table with laptops and microphones during a meeting in a conference room.

Deputy first minister Kate Forbes chaired a meeting of the Convention of the Highlands and Islands in Lerwick on Monday, with first minister John Swinney attending too. Photo: Scottish Government

DEPUTY first minster Kate Forbes says the Scottish Government is “still as committed as it has ever been” to the £100 million Islands Deal – amid financial challenges across the public sector.

Speaking on Monday during a visit to Shetland, the SNP MSP – who is also the economy secretary – said the islands growth deal is “critically important”.

The deal, which was formally signed in January 2023, will see the Scottish and UK governments commit £50 million each towards economic growth projects in Shetland, Orkney and the Western Isles over ten years.

Local projects include redevelopment of the former Anderson High School site, investment in the UHI Shetland campus and an ultra-deep water port at the Dales Voe decommissioning site.

The government cash is expected to attract further match funding.

Local projects are still in their planning phases, and it comes as the Scottish Government prepares its budget for 2025/26.

Echoing the messaging from Westminster, the Scottish Government has conceded there are significant financial challenges – with £500 million of savings already announced in September.

When asked if the islands deal funding was set in stone, Forbes said: “We are still as committed as we’ve ever been to delivering on all of the growth deals. The islands growth deal is critically important.

“It’s also a tripartite agreement – so it’s an agreement between Scottish Government, local authorities and also the UK Government, and we’re committed to it.”

However there have been concerns from island councils about the current value of the £100 million funding due to the impact of inflation since the figure was announced in 2020.

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