£335m growth deal signed for Scottish Islands

The UK and Scottish Governments have signed a £335m growth deal with the leaders of Comhairle nan Eilean Siar, Orkney Islands Council, and Shetland Islands Council.

The agreement outlines plans for both governments to each invest £50m in the future economic prosperity of Orkney, Shetland and the Outer Hebrides.

This is anticipated to unlock a further £235m of investment from project partners, delivering a combined £335m boost for the islands.

The aim of the 10-year programme is to create up to 1,300 jobs and tackling the depopulation concerns facing many parts of the three islands.

The proposals, which are all subject to full business case approval, aim to put the islands at the forefront of the transition to net zero and support thriving, sustainable communities.

‘Today we have signed a transformational deal which will bring jobs, investment and innovation to communities across all three island areas,’ said the UK government’s minister for Scotland, Iain Stewart. ‘These exciting plans show the path to a fairer, more sustainable, more prosperous future as we build back better from the pandemic.’

The deal outlines eighteen project proposals spread across the islands. Some of the plans which could receive UK government investment include:

• The Shell-volution – a new and innovative means of enabling expansion in the low carbon and sustainable mussel farming sector in Shetland, and more widely in Scotland.
• The Orkney Community Vertical Farm – focused on agricultural innovation and creating an islands’ vertical farm.
• Islands Centre for Net Zero – supporting the energy transition for all three island groups and creating sustainable “green” jobs within the islands for 300 people.
• The Outer Hebrides Energy Hub – establishing the initial infrastructure necessary to support the production of Green Hydrogen from renewable energy (Onshore and Offshore Wind).
• The Outer Hebrides Destination Development – focusing on key aspects of island heritage such as St Kilda, the world renowned Callanish standing stones and experiences based on the history of the islanders.

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