WIREDGOV

Island communities will benefit from a £5.75 million boost to support critical infrastructure, tackle rising costs and accelerate the transition to net zero.

The new investment aims to address pressures including depopulation and rising fuel costs which disproportionately affect island communities.

It includes:

• £3 million through the Islands Programme, building on previous investments which have delivered critical infrastructure projects ranging from affordable homes on Shetland to upgraded airfield terminal buildings on Eday and Westray.
• £1 million for the continuation of the Islands Cost Crisis Emergency Fund to help communities tackle increasing costs, distributed through the six island local authorities.
• £750,000 to support net zero projects as part of the Carbon Neutral Islands programme, with past initiatives including decarbonisation of community spaces in Barra and Vatersay, developing a solar farm on Islay and transport decarbonisation on Hoy.
• £1 million to support a range of projects connected to commitments made in the Scottish Government’s new National Islands Plan, including an island scholarship pilot scheme, mental health support for young people and training courses in sustainable tourism.

Deputy First Minister Kate Forbes said:

"Scotland's islands have tremendous potential and this investment in infrastructure, jobs and cost-of-living support will help island communities flourish.

"This funding builds on our new National Islands Plan, published last month, which sets out targeted action to improve housing, healthcare and economic opportunities on Scotland's islands — because when island communities thrive, the whole of Scotland benefits."

Ionad Eilean na h-Òige (the Island of Youth Centre) on Eriskay is a previous beneficiary of Islands Programme funding. The project is transforming Eriskay's former school into a heritage and community hub with a library, café and hot desk facilities.

Sandra MacInnes, Project Development Officer at Ionad Eilean na h-Oige, said:

"The support we have received through the Islands Programme has been a fantastic boost to the Ionad Eilean nan h-Òige project and has helped build real momentum behind our wider vision for Eriskay.

“It not only provided vital investment but also gave the project credibility and helped attract further match funding from other partners, giving funders confidence in both the strength of the project and the commitment of the community behind it.”

Background

The Scottish Government's second National Islands Plan, published in February 2026, sets out the government's vision for Scotland's islands, with a focus on helping communities retain and attract residents.

The Western Isles experienced the largest population decline of any Scottish council area between 2011 and 2022. Island households often experience even more intense cost-of-living pressures than mainland areas, including higher energy costs. All dwellings in Orkney and Shetland and 89% of homes in the Western Isles are off the gas grid.

The Islands Programme is open to the six island local authorities. These are: Shetland Islands Council, Orkney Islands Council, Comhairle nan Eilean Siar, Argyll and Bute Council, Highland Council and North Ayrshire Council. Since its establishment in 2021-22, the programme has made 88 grant awards in support of 55 separate islands, totalling £19.7 million.

The Carbon Neutral Islands programme will continue to support net zero projects on Yell, Hoy, Raasay, Barra, Islay and Cumbrae.