Inter-island connectivity support separate to ‘accelerator’ funding, government confirms

12 October 2026 09:50

Artist's impression of Yell Sound reference tunnel design, developed by Stantec and COWI for the SIC fixed link model study.

THE SCOTTISH Government has confirmed that £23 million set to come Shetland Islands Council’s (SIC) way for inter-island connectivity will be separate to proposed ‘accelerator’ funding for the islands.

That £23 million is set to be used by the SIC over the coming few years to prepare a business case for a potential tunnel to the island of Yell.

The Liberal Democrats’ Highlands and Islands MSP Morven-May MacCallum asked in a parliamentary question whether this funding is separate to the previously proposed island accelerator funding model.

This accelerator funding model was announced in the 2026/27 Scottish budget, with an aim of funding social and economic infrastructure in Shetland, Orkney and the Western Isles.

Among the aims listed was “fixed link enhancements”.

In response to MacCallum’s question, finance secretary Jenny Gilruth said: “While decisions on future funding for the islands accelerator model will be taken as part of future Scottish budgets, any funding provided would be additional to the £23 million of funding for inter island connectivity in Shetland, that was confirmed as part of the 2026-27 Scottish budget and spending review.”

SIC leader Emma Macdonald previously said the hope was that the accelerator funding model could “unlock massive multi-year investment in Shetland”.

The council recently approved an implementation route map for inter-island connectivity improvements in Shetland, which essentially set out the sequence in which proposed projects should come.

For tunnels, a fixed link to Yell was selected as the priority, with one to Unst then following.

Ferry replacements and harbour infrastructure improvements are also in the mix.

However while there is funding in place to undertake a full business case on a tunnel to Yell, there is no committed capital funding for any of the projects at this stage.

Northern Isles MP Alistair Carmichael previously said it was “absolutely right” that the SIC should also be seeking funds from the UK Government for tunnels.

There have been calls for Westminster to stump up for pre-construction work on a tunnel to Unst given that it hosts the nationally important SaxaVord Spaceport – a development which the government recently awarded £30 million.