£50 million announced for Islands Growth Deal

The Outer Hebrides, Orkney and Shetland will benefit from investment of up to £50 million by the Scottish Government as part of the Islands Growth Deal.

Following the Growth Deal recently announced for Falkirk, the government has now said that it is committing £50 million to Orkney, Shetland and the Western Isles, unlocking the islands’ economic potential.

A range of areas, including tourism, infrastructure, innovation, energy transition and skills, will be targeted with the funding. It will be invested over 10 years and will support local sustainable economic recovery and growth.

Regional Growth Deals are agreements between the Scottish Government, the UK Government and local government designed to bring about long-term strategic approaches to improving regional economies.

Michael Matheson, cabinet secretary for Transport, Infrastructure and Connectivity, said: “The Islands Growth Deal is the final regional growth deal to be announced and marks our commitment to invest across all of Scotland, which is something we have pushed for. This money will work to improve the quality of life for island communities, alongside the Scottish Government National Islands Plan we introduced to the Scottish Parliament at the end of 2019.

“This significant investment will support islanders’ ambitions to create world-class visitor destinations, lead the way to a low carbon future, support growth and future industries and help the communities thrive by attracting and retaining young talent, driving inclusive and sustainable economic growth and delivering long lasting benefits for people living across the three island authority areas.

“It is important that all deals take account of the unprecedented economic challenges created by coronavirus and we are working with partners, to understand how best to move forward and respond to current circumstances. More than £1.8 billion has been committed by the Scottish Government to City Region and Growth Deals and related investments across Scotland, in addition to ongoing capital investment in Scotland’s islands across a range of policy areas.”

Scottish Secretary Alister Jack, added: “The City Region and Growth Deals will be crucial to our economic recovery from coronavirus. Today’s announcement means that every corner of Scotland will benefit from these and takes the UK Government’s investment in growth deals across Scotland to more than £1.5 billion.

“These deals are just part of the unprecedented support that the UK Government is providing to people and businesses in Scotland during this time. We have supported 900,000 jobs in Scotland with our furlough and self-employed schemes, including 11,600 across the islands We look forward to working with our partners across the islands and the devolved administration in Scotland to develop innovative and effective proposals.”