Financial support of £3m announced for islanders affected by ferry disruption

Island businesses affected by ferry disruption will be eligible for financial support through the first phase of the £10 million Islands Resilience Fund, the Scottish Government has announced.

Speaking ahead of a three-day visit to the Western Isles, First Minister John Swinney said that island businesses were too often “held back by circumstances outside their control”.

The fund will help them cope with “challenging circumstances” and support them to thrive, he said.

The Scottish Government said the fund will provide a further £3 million in 2026-27 to help mitigate the “disproportionate impact” that people and businesses living and operating in the country’s islands face.

Further phases of the wider £10 million commitment will be delivered over the lifetime of this parliament.

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.”

During his trip to the Western Isles between August 10 and 12, Mr Swinney will visit Barra, South Uist, Grimsay, Scalpay, Lewis and Harris.

His engagements will encompass areas including energy, community wellbeing and housing.

The fund, which will open for applications at midday on August 17, will be administrated by Highlands and Islands Enterprise (HIE).

Rachel Hunter, director of enterprise and community support at 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 experienced 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 (Islands Business Resilience Fund) 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.”