£393m investment to generate 1,300 jobs across three island groups

The long awaited Islands Growth Deal was finally and formally ratified by the UK and Scottish Governments and the three island Authorities of Orkney, Shetland and the Western Isles at a special ceremony in Orkney on January 20th.

Uist councillor and Comhairle Leader Paul Steele attended the ceremony, along with Lord Offord of Garvel, the Parliamentary Under Secretary of State for Scotland, Ivan McKee MSP, Minister for Business, Trade, Tourism and Enterprise, Cllr James Stockan, Leader of Orkney Islands Council and Cllr Emma Macdonald, Leader of Shetland Islands Council.

The Islands Growth Deal delivers a joint UK and Scottish Government commitment of a £100 million investment in the future economic prosperity of the three island groups, and is set to generate an anticipated 1,300 jobs and a further £293 million in match funding over the next ten years.

Of the 16 projects and programmes detailed in the Deal, five are specific to the Western Isles, with a further number benefiting across the island groups.

Four Uist projects are expected to benefit from the investment, including the proposed South Uist Food Hub, a Creative Practice Hub at Taigh Chearsabhagh, the St Kilda Viewpoint visitor centre at Beinn Riabhach on North Uist and the Comhairle’s controversial Spaceport development at Scolpaig Farm.

Cllr Steele described the programme as ‘highly ambitious, but achievable’, and thanked the many community and council members who had supported the project from the start.

Cllr Steele said: “The signing of the Islands Growth Deal is both the culmination of a vision set out by the Islands Councils and the UK and Scottish Governments and the beginning of the implementation of that vision.”

It is a milestone towards achieving our aims of securing 1300 jobs and £393m of investment over 10 years through the Islands Deal, using the resources of our Islands and capitalising on our natural assets and most importantly, our people.”

Ivan McKee MSP, Scottish Government Business Minister said: “This Growth Deal will be a game-changing initiative for our islands – enabling sustainable economic growth and delivering new and internationally significant port infrastructure that will play an important role in achieving net zero targets.

“This £50 million Scottish Government investment will support the transition to renewable energy sources – including equipping the workforce with new skills – and trial emissions reduction initiatives on islands. It will drive innovation in key space, food and drink and creative industries sectors; help develop significant tourism and cultural attractions and expand education provision.

“We are determined that our islands should be attractive places to live and work and are able to maximise their contribution to Scotland’s sustainable economic transformation.”   

UK Government Minister for Scotland Malcolm Offord said: “This will not just boost local economies and create jobs, but also empower communities to get the most out of the many assets and attributes that make the islands such unique and special places to live.  

“This deal is packed with a broad range of high-impact projects, whether it’s leading the transition to net zero or developing ‘must-visit’ destinations such as the St Kilda trail.”