National Islands Plan: annual report 2024

Population Levels

Strategic Objective 1 – Address population decline and ensure a healthy, balanced population profile.

Commitment 1.1 Identify islands where population decline is becoming a critical issue in order to ensure that these islands have their needs addressed.

Implementation Route Map 2024

• We will continue to utilise and promote the Scottish Island Regions (2023) geography developed by the James Hutton Institute (JHI) and used as the basis for the National Islands Plan Surveys 2020 and 2023. Grouping islands together into regions is one feasible way to provide aggregate statistics on the Scottish island population, overcoming the challenge that many of the islands are very sparsely populated. Using this new grouping will mean that National Records of Scotland will be able to produce Scottish Island population estimate data every year.
• Based on the 2022 Census, the National Records of Scotland have published population counts for both individual islands and island groups. More data and reports concerning islands and island groups will continue to be released over the course of 2024 and 2025.
• The Scottish Islands Survey 2023 was published on 17 September. While it will not contain population data, it will provide relevant accompanying information, such as demographics of returners to islands.
• Following a public consultation, the Highlands and Islands Regional Economic Partnership (REP) will finalise its Regional Economic Strategy, which includes a strong focus on population retention and growth.
• The Scottish Government will continue to support Community Settlement Officers roles within Argyll and Bute Council and Comhairle nan Eilean Siar on a co-funding basis.

Scottish Islands Data Dashboard

The Scottish islands: data overview 2023 and Scottish Islands Data Dashboard were published on 5 December 2023. This report gives a snapshot of Scotland’s island-level data as collated in the new Scottish Islands Data Dashboard and draws out key findings relating to each of the Strategic Objective topic areas set out in the National Islands Plan.

Key data sources have been selected for 12 of the 13 Strategic Objectives:

1. Population

2. Sustainable economic development

3. Transport

4. Housing

5. Fuel poverty

6. Digital connectivity

7. Health, social care and wellbeing

8. Environmental wellbeing

9. Climate change mitigation

10. Communities

11. Arts, culture and language

12. Education

Scottish island-level data has been compiled into an easy-to-understand dashboard. In some cases, we transformed the data and presented it using the new Scottish Islands Region geography.

The Islands Growth Deal

The Islands Growth Deal is now in its delivery phase, driving sustainable, inclusive economic growth across Orkney, Shetland, and the Outer Hebrides, while investing in people, projects, and priorities to increase opportunities for all.

It is jointly funded with investment of £50 million from the Scottish and UK Governments, with the Full Deal agreement signed on 20 January 2023. This is a significant milestone, which will see funding for individual projects and programmes released once Full Business Cases have been approved.

The Deal seeks to leverage the islands’ assets and opportunities to transform their economies and change their demographic trajectory. It aims to deliver up to 1,300 jobs by 2032, attracting people to the islands and helping them to be among the first places in the UK to achieve net zero.

The Scottish Government will invest in thirteen of the Deal’s sixteen projects, focusing on three key themes:

1. £16 million for three projects in the Low Carbon theme, which will contribute to our net zero commitments by supporting energy transition, delivering port infrastructure for decommissioning, and piloting decarbonisation in an island context.

2. £15.5 million for six projects in the Growth and Future Industries theme, developing island tourism, cultural assets, and innovation in key space, food and drink and creative industries.

3. £18.5 million for four projects in the Thriving Sustainable Communities theme, expanding learning facilities, providing sustainable housing, and investment in a skills programme for key sectors including decarbonisation and renewable energy.

The Argyll and Bute Growth Deal

The Argyll and Bute Growth Deal will promote economic growth, benefitting individuals, businesses and communities. It will use the area’s natural marine resources to develop the aquaculture industry, enhance sustainable tourism, offer training opportunities and creating high value jobs. The Deal has three main themes:

1. Connecting - Improving physical and digital infrastructure to strengthen communities and support their high value and growth sectors to connect with national and international business markets.

2. Attracting - Providing skills, training and opportunities to attract and retain young talent and boosting the tourism offering.

3. Growing - Doing more of what works by making more of their resources and supporting innovation and growth.

The Highlands & Islands Regional Economic Partnership

The Highland & Islands Regional Economic Partnership (HIREP) Strategy is in the process of being approved by the seven Local Authorities. This is anticipated to be finalised by the end of February 2025.

Population is one of the three cross-cutting themes of this Strategy, as “the Highlands and Islands has experienced periods of significant population decline throughout its history which have resulted in successive governments and the European Union recognising the need for strategic support. With the 2022 Census indicating that every part of the region has experienced a decline in working age population, although more keenly felt in the islands and the North mainland, the Strategy recognises the core need for significant investment in people, infrastructure, businesses to tackle this challenge. The region’s greatest asset is its people. They are intrinsic to realising our ambitions and creating the conditions for population growth requires actions across all the goals in the Strategy.”

Highlands and Islands Enterprise

The retention of young people in island communities is at the heart of sustaining population. This requires affordable housing, with access to high-speed broadband and reliable transport links. Highlands & Islands Enterprise (HIE) continues to chair the HIREP Population sub-group which brings together representatives from those local authority areas most impacted by depopulation, as well as individuals from the Scottish Government’s Islands and Population teams. All the island areas are represented on this group. Through this work, HIE have been working closely with the Community Settlement Officers in Argyll and Bute Council and Comhairle Nan Eilean Siar, whose posts are part-funded by the Scottish Government’s Islands Team.

Furthermore, HIE’s research into Regional Transformational Opportunities (RTOs) is due to report in the first quarter of 2025. Once published it will provide good evidence on what is happening in relation to economic opportunities across the whole region and will support HIE’s continuing approach to place-based development.

Commitment 1.2 Understand the impact of Brexit on islands and island communities.

Commitment Fulfilled.

This commitment was fulfilled in 2021. Please see National Islands Plan Annual Report 2021 for details.

The food and drink sector, which is well represented across the Scottish islands, continues to face disrupted supply chains, new trade barriers and higher food prices. While the full economic consequences of exiting the EU are yet to be realised, businesses now face additional expense when trading, and some food producers have found that their goods can no longer be exported to the EU. Many of Scotland’s food industries are still suffering from lower imports and exports to the EU.

Commitment 1.3 Develop an action plan to support repopulation of our rural and island communities and work with partners to test approaches using small-scale pilots.

Commitment Fulfilled.

This commitment was fulfilled in 2023. Please see National Islands Plan Annual Report 2023 for details.

Commitment 1.4 Work with young islanders to identify actions to encourage them to stay on or return to islands.

Implementation Route Map 2024

• The Scottish Government will continue to support Youth Scotland to deliver the Young Islanders Network (YIN), ensuring that the voices of young people are heard and can genuinely shape both the delivery of the current National Islands Plan and the development of the new document.
• Work on the Graduate Retention project is continuing. Graduate Retention aims to encourage students to remain in Scotland (and rural locations/move to islands) after completing their studies. Working with young islanders will help us develop our understanding of what would make them want to stay or return after study.

The Young Islanders Network

In 2024, the Scottish Government continued to support the Young Islanders Network (YIN) to ensure that the views, recommendations and ambitions of young people living on Scottish islands are heard as part of the design and delivery of initiatives that support them to stay or return to islands.

YIN members are empowered to set their own agenda, based on how they want to address the local and national priorities that matter to them the most.

In December 2024, the YIN published the final Housing Challenge Report YIN Housing Report Link. A total of 223 participants took part in the online challenge survey, which was co-developed by the YIN membership and disseminated across the islands from October 2023 to September 2024. Concerns were raised about the cost of buying and renting homes in the islands, the impact of second homes and holiday lets on the availability of affordable housing, and the wider effect on the communities where these types of homes are disproportionate. Access to employment, transport links and the costs of living were also highlighted as significant concerns. Responses from young people also emphasised that living close to family is important to them.

The Housing challenge report was presented by the YIN’s Senior Development Worker at a cross-party group meeting focused on islands, which was attended by the Minister for Housing, Mr Paul MacLennan, MSP. Mr MacLennan provided a written response to the report which was circulated across the YIN membership, and a meeting was held between the YIN and the Hebridean Housing Partnership Board and Executive Leadership Team to discuss the concerns raised in the report.

Many public bodies and local decision makers continue to seek the views of YIN members when reviewing existing programmes or establishing new projects. This includes incorporating contributions to research on Young Island mobilities in collaboration with the Addressing Depopulation Action Plan policy team, alongside evaluations of the Cashback for Communities programme, the National Lottery Communities Fund, and the Under 22s ferry fare consultation with Transport Scotland.

Young people have been supported to meet in person to learn more about the current National Islands Plan and participate in early stages of consultation for the new plan during a residential weekend in Portree held in early November 2024. Delegates from Arran, Tiree, Barra, Lewis and Shetland were in attendance. The residential offered opportunities to meet with young people in Skye and Raasay and to learn more about their island communities.

International Graduate Retention

Retaining international students across all regions of Scotland after completing their studies continues to be an aim of the International Education Strategy. This includes gaining a better understanding of international graduate outcomes and supporting employers who are seeking to recruit international graduates including through promoting Scotland’s Migration Service.

Highland and Islands Enterprise – Graduation Placement Programme

Of the 20 Graduate Placements that HIE supported in 2022-23, 11 were based on the islands. Nine of these (81%) were retained in their roles post-placement into 2023-24. The recently launched Graduate Placement Programme 2024-27 is a three-year rolling programme, aiming to deliver approximately 40 placements, around 50% of these to be within Inclusive Growth focus areas which will have a particular focus on supporting placements on islands and in disadvantaged areas.

Commitment 1.5 Fully consider policy developments, such as the findings of the Scottish Government research “rural planning to 2050”, when ensuring that the needs of Scotland’s islands are taken into account by the Ministerial Task Force on Population.

Commitment Fulfilled.

This commitment was fulfilled in 2020. Please see the National Islands Plan Annual Report 2020 for further details

Commitment 1.6 Ensure that policies aim to retain and attract Gaelic speakers to live and work in Gaelic speaking island communities.

Implementation Route Map 2024

• Ongoing completion of Island Communities Impact Assessments by relevant authorities will support this process following the 2022 update to the ICIA Guidance and Toolkit.
• Established quarterly meetings between the Gaelic and Scots Team and Bòrd na Gàidhlig will continue.

In November 2024, the Deputy First Minister and Cabinet Secretary for the Economy and Gaelic published the Scottish Government’s formal response to the Report of the Short Life Working Group on Economic and Social Opportunities for Gaelic.

The Short Life Working Group was formed under the National Strategy for Economic Transformation (NSET). Its aims were to outline the ways in which Gaelic served to encourage regional productivity in specific island communities: Na h-Eileanan Siar, Skye & Lochalsh, Tiree and Islay.

The Group provided 45 recommendations, 12 of which related to Population and Infrastructure. Ten of these recommendations have been accepted by the Scottish Government, with one being noted. Over the coming year, the government and our partner bodies will begin the implementation of these recommendations to ensure that Gaelic speakers are retained and attracted to live and work within Gaelic speaking island communities. Our implementation of the overall response to the Short Life Working Group on Economic and Social Opportunities for Gaelic will represent a major component of our approach to the language within island communities, alongside other measures such as the Scottish Languages Bill’s measures for Areas of Linguistic Significance.

Commitment 1.7 Work with policy colleagues to produce a National Development Plan for Crofting which will set the long-term strategic direction for crofting – highlighting the core elements necessary to ensure crofting remains at the heart of our rural and remote communities.

Commitment Fulfilled.

This commitment was fulfilled in 2021. Please see the National Islands Plan Annual Report 2021 for further details.

Commitment 1.8 Work with the Crofting Commission to encourage a healthy turnover of croft tenancies on our islands to create opportunities for new people into crofting.

Implementation Route Map 2024

• The Commission is expanding its Residency and Land Use (RALU) work with a view to addressing absenteeism and bringing tenanted and owner-occupied crofts back into active use. This will help create opportunities for new entrants.
• The Commission will be writing to a selection of crofters (both tenants and owner-occupier crofters) who have either not returned their crofting census or indicated in their returns that they are in breach of one or more of their duties.
• The Commission will continue to promote the Scottish Land Matching Service Crofting Resource.
• The Commission will continue to engage with crofters on succession planning.
• The Commission will launch and publicise a system of investigating reports focusing on owners of vacant crofts who are not working the croft and/or are not ordinarily resident on or within 20 miles (32 kilometres) of the croft. This is to determine whether a notice should be issued requiring the owners to submit proposals for letting the croft.

Crofting Policy

The Crofting Commission has received an increase to its budget each year since 2020-21, enabling it to expand its staff resource, including in residency and land use enforcement. In 2024, the Crofting Commission introduced, with the support of the Scottish Government’s Rural Payments and Inspections Division, a system of investigating crofters who appeared to be non-resident and in breach of at least one of their duties. A random sample of crofters were investigated with positive results. The project has been well received throughout the crofting counties and will be expanded in the future. The Commission’s focus on addressing absenteeism and neglect brings crofts back into productive use and creates opportunities for new entrants.

There are over 500 new entrants to crofting each year. Provisional stats suggest that from April 2023 to April 2024, there were over 530 new entrants to crofting. Approximately 48% of whom were island crofters, 47% were female and 25% were aged 40 and under.

Commitment 1.9 Continue to provide support for island crofters to make improvements to their crofts and help to sustain their businesses, these will include Croft House Grant Scheme, Cattle Improvement Scheme and other crofting support mechanisms.

Commitment Fulfilled.

This commitment was fulfilled in 2020. Please see the National Islands Plan Annual Report 2020 for further details.