Island businesses struggling with the financial consequences of ferry disruption are to receive further support through the first phase of a new £10 million Islands Resilience Fund.
The Scottish Government has announced £3 million for 2026 and 2027 to help businesses and community organisations facing additional costs and disruption caused by the particular challenges of operating on Scotland’s islands.
The funding builds on the £4.4 million Islands Business Resilience Fund delivered during 2025 and 2026, with eligibility being widened to allow support to reach more island communities and sectors.
Highlands and Islands Enterprise will administer the fund, which will open for applications at midday on Monday 17 August.
Organisations which received support through previous rounds of the Islands Business Resilience Fund will be contacted directly by HIE and will not need to submit another application.
The announcement comes as First Minister John Swinney begins a three day visit to the Western Isles from 10 to 12 August, taking in Barra, South Uist, Grimsay, Scalpay, Lewis and Harris.
His programme will include discussions around housing, energy and community wellbeing alongside the wider challenges facing island communities.
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.”
The first phase will cover Arran, Barra, Benbecula, Berneray, Canna including Sanday, Coll, Colonsay, Eigg, Eriskay, Gometra, Grimsay, Iona, Islay, Jura, Harris, Muck, Mull, North Uist, Rum, South Uist, Tiree, Ulva, Vatersay and Scalpay.
Rachel Hunter, Director of Enterprise and Community Support at Highlands and Islands Enterprise, 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.”
The £3 million represents the first phase of the wider £10 million commitment, with further funding due to be delivered during the course of this Parliament.
