Strengthening islands resilience

10 Aug 2026 10:41 AM

First phase of £10 million funding announced as FM visits Western Isles.

Financial support for island businesses affected by ferry disruption will be made available through the first phase of the £10 million Islands Resilience Fund.

This will provide a further £3 million in 2026-27 to help mitigate the disproportionate impact faced by people and businesses living and operating in Scotland's islands. It builds on the £4.4 million Islands Business Resilience Fund delivered in 2025-26. 

The funding announcement comes ahead of a three-day visit to the Western Isles from the First Minister, during which he will visit Barra, South Uist, Grimsay, Scalpay, Lewis and Harris. His engagements on the islands will cover key areas including housing, energy and community wellbeing.

First Minister John Swinney said:

“Scotland’s islands are home to a wealth of talent, innovation and entrepreneurialism, but too often island businesses are held back by circumstances outside their control.

“The £10 million Islands Resilience Fund was one of our commitments for the first 100 days of government. This fund will support businesses to cope with challenging circumstances, helping them to thrive and ensuring that Scotland’s islands remain attractive places to set up businesses and livelihoods.

“Crucially, this phase of investment will ensure support can be put in place immediately while we establish the foundations for longer-term investment over the course of this Parliament.

“Over the next few days I will meet a wide range of organisations in the Western Isles, where I look forward to discussing more about how the Scottish Government can support island communities to build the resilience needed for a bright future.”

Rachel Hunter, Director of Enterprise and Community Support, Highlands and Islands Enterprise (HIE) said:

“The Islands Resilience Fund will ensure that support reaches more island communities and sectors experiencing the effects of ferry disruption. By opening eligibility, we can provide practical assistance to businesses and community organisations that have experiences additional costs and challenges beyond their control.

“Working on behalf of the Scottish Government, HIE’s focus will be on delivering the fund and ensuring support reaches those who need it most. Organisations that received support through previous rounds of the IBRF will be contacted directly by HIE, rather than needing to submit an application.

“This investment will help strengthen resilience across our island communities, supporting organisations to adapt, recover and continue contributing to vibrant and sustainable local economies.”