National Islands Plan: annual report 2024

Sustainable Economic Development

Strategic Objective 2 – Improve and promote sustainable economic development

Commitment 2.1 Identify key actions to drive inclusive and sustainable economic growth on islands such as community-run businesses, e-commerce and digitally enabled island-based businesses.

Implementation Route Map 2024

• Economic Transformation (NSET) to transform the way in which the public sector in Scotland provides support for workers and businesses. NSET recognises the need to build a model that reaches every community, rural or urban, and connects people and businesses with the support they need.
• We will continue to work with teams and our agencies delivering the priorities of the National Strategy for Economic Transformation in ways that maximise benefits for island communities.
• Highlands and Islands Enterprise (HIE) will continue to support regional strengths and opportunities whilst addressing barriers to growth. HIE will continue to flex its delivery for island communities and businesses through its area team approach, adjusting intervention rates and criteria for programme support to increase entrepreneurship, innovation and productivity.
• HIE will also continue to support growth, innovation and productivity in sectors which are fundamental to islands’ economy, both those which are well established such as food and drink, tourism and creative industries and those which are developing including renewable energy, the blue economy and space.

Highlands and Islands Enterprise (HIE) continues to deliver its Innovation Programme across the Highlands and Islands. Three senior innovation managers provide one-to-one support to businesses in the Western Isles, Orkney and Shetland respectively. This support includes addressing productivity challenges, new product development and advice on the programme more generally. 34 island businesses benefited from this support. A research and innovation grant is also available to island businesses. Aquatera on Orkney benefited from £77,000 to undertake a Research and Development project. HIE delivered “Ideas for Growth” masterclasses on Harris and Shetland, and three island businesses were funded to attend a learning journey to the Subsea Centre in Aberdeen to learn more about digital twinning.

Commitment 2.2 Explore how best to ensure the needs of islands are met within emerging regional economic partnerships including the Convention of the Highlands and Islands (CoHI).

Implementation Route Map 2024

• All island local authorities are active members of COHI and are represented on the Highlands and Islands Regional Economic Partnership.
• The Skills Recognition Scotland pilot project ended in Autumn 2023. A Lessons Learnt Report is to be published in summer 2024. The Graduate Retention programme continues to encourage students to stay in Scotland on completion of their studies.
• The first iteration of Scotland’s Migration Service launched on 27 March 2024 to help recently arrived migrants to settle, and Scottish employers and inward investors to navigate the UK immigration system to meet their labour needs. The second iteration of the service will launch in the autumn and will open both to people abroad who want to work in Scotland, and to people in Scotland who have limited leave to remain or enter.

Regional Economic Partnerships

Scotland’s regional economies Regional Economic Partnerships (REPs) are key to the delivery of future economic strategies and highlight our commitment to enabling effective regional decision-making.

The Scottish Government published the Regional Economic Policy Review in December 2022. This examined why, and in which policy areas, economic development works well at a regional scale. Scottish Ministers have since fully accepted all eleven recommendations put forward in this review, with implementation intended to deliver a greater level of policy and fiscal autonomy to the REPs.

The 2024-25 Programme for Government reiterated the Scottish Government’s commitment to the REPs, and work is underway to consider how we can provide greater regional empowerment within the context of broader public service reform.

Skills Recognition

The Skills Recognition Scotland (SRS) pilot project ended in August 2023 and a Learning Insights Report was published on 8 November 2024.

International Graduate Retention

The aim of attracting and retaining international students across all regions of Scotland after completing their studies continues under the aims of the International Education Strategy. Please see paragraph 1.4 above for more information.

Scotland’s Migration Service

Scotland’s Migration Service is an online information and advice resource that provides free practical support to help users navigate the UK immigration system and maximise its use to meet relocation and/or business needs.

The service supports priority commitments within Scotland’s Population Strategy and National Strategy for Economic Development, contributing to efforts to grow our economy, maximise our existing talent pool, and attract more individuals to Scotland to address skills shortages and demographic challenges.

The service supports employers and investors to recruit and retain international workers or to expand a business in Scotland. Employers based across all of Scotland, including on our islands, can access this support.

The service also provides support for individuals who want to move to Scotland and those who have already moved, including those who have chosen to make the islands their home, to help users relocate and successfully settle into their communities.

A range of information and advice is accessible through a digital platform, which includes additional resources such as webinars, guides, features, and case studies, alongside the ability for eligible users to book free one-to-one appointments with qualified advisers to address specific circumstances.

Skills Planning Policy

The Scottish Government has committed to taking responsibility for skills planning at a national level, while strengthening regional approaches.

We are bringing together employers, colleges, universities, and other key partners to ensure the system is responsive to regional and national skills needs.

We have begun this work in collaboration with key partners, which will inform the design of new skills planning processes.

This Scottish Government-led skills planning approach will help develop a better understanding of skills needs at a national level, and how we can better address them, particularly where solutions lie within the education and skills system.

We know that Scotland’s diverse landscape and geography results in specific regional opportunities and challenges and that a one-size-fits-all approach to skills planning will not work for our island communities. That is why we are seeking to enhance both our national and our regional approaches to skills planning, to ensure that our education and skills system can become more agile and responsive to the needs of Scotland’s employers and learners.

Engagement on Regional Skills Planning Policy Reform

In Autumn 2024, the Skills Planning Policy Unit undertook extensive engagement with all Regional Economic Partnerships (REPs), to share our initial guidelines for developing a strengthened approach to regional skills planning, building on existing best practice, and to gather the views of regional partners.

Skills policy officials met with the Highland and Islands REP in November 2024, and the Ayrshire Skills Group in December 2024. Attendees representing islands interests in these meetings included the University of Highlands and Islands (UHI), the Western Isles, Argyll and Bute, Orkney and the North Ayrshire councils. Some of the issues raised included the importance of understanding and appreciating the complexity of the regions, as well as a lack of people, and the need to attract people into the regions to meet skills needs.

This engagement was the first step in a longer-term collaboration with regional partners on skills planning policy and the learnings from it will feed directly into the Skills Planning Reform Project and associated business case (in alignment to the recommendations of the James Withers Review of the Skills Delivery Landscape and the Scottish Government’s own Purpose and Principles strategic document).

Climate Emergency Skills Action Plan Pathfinder Work Package 2

The Scottish Government, Skills Development Scotland (SDS) and the Scottish Funding Council (SFC) worked in collaboration on the Shared Outcomes Framework (SOF), published in 2022, setting out details of skills projects on which SG, SDS and SFC were collaborating.

One of the projects listed in the SOF was the Climate Emergency Skills Action Plan (CESAP) Pathfinder project, which comprised two complementary work packages. CESAP Pathfinder Work Package 1 (WP1) created an approach to building the evidence base around green jobs, skills, and provision. Building on this, Work Package 2 (WP2) aimed to pilot this approach in a specific sub-sector and geographic area and to develop an approach to implementation. Shetland was identified as one of two pilot areas. SDS and partners worked closely with regional stakeholders to build and test the evidence base around heat decarbonisation jobs, skills and provision in Shetland. The work also relied on insights from industry stakeholders - both regional and national. These regional insights proved invaluable due to challenges around data for smaller geographical areas such as Shetland.

Following the evidence-gathering process, workshops were held with stakeholders and partners to identify skills challenges and to co-design a skills response to address these. Resultant areas of action included activity to improve perceptions of decarbonisation of heat and buildings as a career choice, business engagement to drive employer demand for heat decarbonisation related skills and enhancing the curriculum to support decarbonisation of heat and buildings.

Partners in Shetland viewed the approach positively and were highly engaged with the process. Their involvement was instrumental in gathering regional insights and co-designing the skills response, ensuring that the actions taken were well-aligned with the needs of the industry and the region.

Whilst the project was led by SDS, colleagues from SFC and the Scottish Government provided invaluable input, support, and challenge at all stages of the work. This included, but was not restricted to:

• direct involvement in the provision of data and evidence.
• feedback on elements of design and process enhancement.
• participation in the CESAP WP2 Delivery Group, which was set up to provide opportunities for review, support, and challenge throughout the project.
• involvement in the co-design workshops, to help shape and pick-up on relevant areas for action.

Highlands and Islands Enterprise

The Highlands and Islands Regional Economic Partnership (HIREP) focused on the development of its first Regional Economic Strategy, setting out the key collaborative actions across a new set of agreed goals.

During 2024, beyond the development of the strategy, its focus has been on housing issues and solutions, community wealth building and community benefit models for offshore wind, and understanding better the regional transformational opportunities and what is required to enable these.

Commitment 2.3 Tailor business and community support for island communities to ensure products and services are fit for purpose, accessible and effective. This will include exploring new and innovative models and working with national providers to consider how programmes can better address needs of island communities and businesses.

Implementation Route Map 2024

• As set out in the NSET, the Scottish Government is developing Community Wealth Building (CWB) legislation for introduction in this parliamentary term. The Scottish Government is undertaking detailed analysis of respondents’ feedback to the public consultation held in 2023, including in relation to the proposal for a duty to advance CWB.
• HIE will continue to provide business and industrial premises in island locations where market failure exists and develop innovation assets to support transformational opportunities. HIE will also continue to support community wealth building through building community capacity, capability and developing community assets.

The Islands Growth Deal

The Deal’s pan-island TalEntEd Islands Skills Programme, which is now in delivery, seeks to grow the level of university activity on the islands by developing innovative new curriculum and delivery models aligned with identified key sector priorities. It will develop proactive approaches to talent attraction and retention to support the growth in sustainable green jobs across the islands, support businesses to test and commercialise new ideas and deliver tangible benefits to communities. The target audiences will vary, from young people seeking careers as entrepreneurs, to mothers heading back to work after having their family, to senior members of the community.

Support will be delivered through four distinct work packages through the partners which include the University of the Highlands and Islands, Robert Gordon University, Herriot Watt University, and the island local authorities.

Community Wealth

The Scottish Government will introduce Community Wealth Building legislation in this parliamentary year. The Bill will seek to address economic and wealth inequality by supporting the retention of more wealth in local and regional economies. It will look to ensure consistent implementation of the Community Wealth Building model of economic development across Scotland.

Commercial Property

Highlands and Islands Enterprise continues to invest in commercial property across the islands to support economic growth and innovative new approaches to delivery of available commercial property have been pursued. These include direct own hand capital-funded projects as well as grant- and loan-assisted projects with clients and partners to deliver a supply of suitable commercial property in island locations. We have continued with our own hand programme of developing small business units (SBU’s) using HIE capital funding. These support job creation and job retention in island communities. During 2024, we have invested in and delivered the following property projects within the Scottish Islands:

• Broadford, SkyeHIE invested £3.1 million in developing three terraces of small business units within Broadford Industrial Estate.
• Balivanich, Benbecula, Outer HebridesHIE has invested £2.1 million in developing a second phase of small business units at Eabhal Business Park, Benbecula.
• Arnish Industrial Estate, Lewis, Outer HebridesDuring 2024, HIE has continued to invest into Arnish Industrial Estate near Stornoway. This has included completion of a feasibility study to assess expansion options and completion of a masterplan for the surrounding Arnish Corridor. There has been investment of circa £350,000 in associated infrastructure, including sea revetment and road repairs.
• BASF Production Facility, Breasclete, Outer HebridesHIE has invested £1.8 million in developing a new c.450m2 storage warehouse at the BASF production Facility at Breasclete, Lewis. This will support the company to improve efficiencies in their production of a high-quality lipid used in the treatment of cardiovascular disease.
• GA Leask, Lerwick, ShetlandHIE has invested £486,956 (which includes £108,324 of repayable grant) into GA Leask, a local building contractor, to adapt a 2,664m2 warehouse in Lerwick, Shetland into five industrial units. The project will enable GA Leask to expand their business while also creating four additional industrial units. This approach will help meet market demand for such units and address local market failure – characterised by full utilisation of current stock and prohibitive costs to develop industrial property. It delivers an excellent return on investment on our funding (£142 per m2 of industrial unit developed), and without the liabilities associated with an own hand project.
• Cnoc Soilleir, South Uist, Outer HebridesHIE has completed the funding package for Phase 2 of Cnoc Soilleir with an investment of £2.1 million to complete the community’s vision for a Gaelic cultural centre in South Uist. Construction is currently under way.
• Community AssetsHIE continues to support community asset ownership and development, and delivers the Scottish Government’s Scottish Land Fund in partnership with the National Lottery Community Fund. The following community acquisition projects were supported this year:

Area- Orkney

• Papay Development Trust: Acquire a house for affordable housing- £143,000
• Westray Development Trust: Acquire old Community Hall- £38,000
• Westray Development Trust: Acquire a house for affordable housing- £83,000
• Stromness Community Development Trust: Acquire Community Centre and playpark- £138,000
• Sanday Development Trust: Acquire a house for affordable housing- £98,000

Area- Argyll & the Islands

• Colonsay Community Development Company: Acquire a house (and croft) for affordable housing- £395,000
• Mull & Iona Community Trust: Acquire land for a tree nursery- £15,000
• Mull & Iona Community Trust: Acquire land for affordable housing- £111,000
• Tiree Community Development Trust: Acquire land for affordable housing- £154,000
• Lamlash Community Hub: Acquire church and hall for Community Hub- £122,000

Area- Comhairle nan Eilean Siar

• Harris Development Limited: Acquire Scalpay School for a Community Hub- £62,000

Area- Lochaber, Skye & Wester Ross

• Community of Raasay Retail Association Ltd: Acquire former church to provide new premises for a community shop -£68,000
• Minginish Community Association: Acquire land for affordable housing - £97,000

Total- £1,524,000

The Delivery Resource (DR) Programme

This Programme is supporting 25 of our island communities with revenue funding to facilitate the employment of Local Delivery Officers to progress prioritised projects to support resilience and wealth building, improve regional equity through enabling infrastructure, and services to attract and retain population.

The 25 projects are listed below and have been supported – in partnership with the Scottish Government and the Strengthening Communities Programme – with over £600,000 in 2024-25.

Area- Argyll & the Islands

• Bute Community Land Company
• Colonsay Community Development Company
• Cumbrae Community Development Company
• Isle of Gigha Heritage Trust
• Isle of Luing Community Trust
• Tiree Community Development Trust

Area- Comhairle nan Eilean Siar

• Harris Development Limited

Area- Lochaber, Skye & Wester Ross

• Ionad Throndairnis (Trotternish Centre)
• Isle of Eigg Heritage Trust
• Isle of Rum Community Trust
• Portree & Braes Community Trust
• Raasay Development Trust Limited
• Staffin Community Trust
• Uig Community Trust

Area- Orkney

• Eday Partnership
• North Ronaldsay Trust
• Papay Development Trust
• Sanday Development Trust
• Shapinsay Development Trust
• Stronsay Development Trust

Area- Shetland

• Bressay Development Limited
• Community Development Company of Nesting
• Fair Isle Development Company
• Sandness Community Development Group
• Scalloway Community Development Company

The Support for Communities Framework 2022-26

The Framework has supported 13 community clients in 2024-25, seven of these projects have been from island communities. Following an evaluation of the pilot Framework, all support is now delivered digitally, with travel costs and on-site meetings to be approved by exception only. This helps to remove the geographical barrier for our island communities and supports our transition to net zero.

The Framework support enables community organisations to increase their capacity, experience and knowledge to confidently progress community development projects.

Client Organisations

Area- Orkney

• Shapinsay Development Trust: Island Development Plan
• Stronsay Development Trust: Financial Management Review
• Stronsay Development Trust: Island Development Plan

Area- Shetland

• Shetland Bike Project: Strategic Review and Plan

Area- Comhairle nan Eilean Siar

• North Lochs Community Association: Community Consultation and Options Appraisal
• Garadh Bagh a Tuath: Strategic Review
• Sealladh Hort: Strategic Development Plan

Commitment 2.4 Work in partnership to support strategic projects which deliver sustainable economic growth in the islands, e.g., Orkney Research and Innovation Campus and Stornoway port developments.

Implementation Route Map 2024

• Through the Islands Growth Deal, to which both Scottish and UK Governments have committed up to £50 million, we will be investing in local people, projects and priorities in partnership with local authorities, the UK Government and a wide range of public, private and third sector partners. This will spread the benefits of inclusive economic growth across Orkney, Shetland and the Outer Hebrides, increasing opportunities for all.
• The Calanais Visitor Centre, a project within the Outer Hebrides Destination Development programme, is now in delivery. It will have a strategic role in facilitating and servicing the increased visitor numbers anticipated from the Stornoway Deep-Water Cruise Terminal.
• The Scottish Government, along with HIE and Comhairle nan Eilean Siar, is a key partner in the Stornoway Deep Water Port project, providing £33.7 million in resource funding over 25 years through the Growth Accelerator Model (GAM). With the port now fully operational, the focus in the coming years will largely relate to supporting green energy opportunities and creating new jobs.
• The Scottish and UK Governments have each committed £1.5 million of funding to complement the work being undertaken to support the development of a local energy plan for Islay and lead to the implementation of an energy network across the island. We will continue to work with stakeholders to support the local energy plan, which is being developed for consideration as part of the Argyll and Bute Rural Growth Deal.

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 was 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. Regional partners expect the Deal 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 – contributing 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.

There are now six projects in delivery:

1.The Islands Centre for Net Zero, which aims to drive decarbonisation, create sustainable, well-paid jobs and reduce fuel poverty and costs associated with island living.

2.The Outer Hebrides Campus Redevelopment, which will improve the islands’ education and skills offer to attract and retain young people.

3.The Outer Hebrides Destination Development Programme – the first project within this programme, the Calanais Visitor Centre, will have a strategic role in facilitating and servicing the increased visitor numbers anticipated from the Stornoway Deep-Water Cruise Terminal.

4.The Outer Hebrides Food and Drink Programme – the first two projects within this programme of support for multiple investments to improve the capacity and value add of key local food industries.

5.TalEnTed – which is focused on the improvement of education and skills across the Deal programme particularly in net zero and renewables sectors.

6.Shell-volution – which seeks to enable future growth in the low-carbon and sustainable aquaculture sector with a focus on research.

The Stornoway Port Development

The Stornoway Deep Water Terminal construction project is now complete, and facilities were open for the cruise season 2024. Whilst there was some weather disruption to planned cruise visits, the number of passengers ashore exceeded projections for the year, and feedback from local businesses has been very positive regarding the additional turnover generated. New entrants continue to join the sector and further growth in visitor numbers and economic activity is anticipated. HIE, Comhairle nan Eilean Siar, Visit Scotland and The Scottish Government continue to work in partnership with the Stornoway Port and the wider private sector to deliver maximum benefit from this significant investment.

Argyll and Bute Rural Growth Deal

Argyll and Bute Council are consulting with local stakeholders to decide on the best course of action for an Islay local low-carbon proposal. The Scottish Government continue to work closely with the council to progress the Rural Growth Deal.

Commitment 2.5 Drive forward the many socio-economic opportunities arising from the 2019 Science and Innovation Audit report ‘Maximising Opportunities for the Marine Economy in the Highlands and Islands’ as well as enhance those arising from growth deals.

Implementation Route Map 2024

• Several projects with a strong focus on the marine economy are being taken forward as part of both the Islands Growth Deal and the Argyll and Bute Growth Deal. Both the Scottish and UK Governments will continue to work closely with partners in both Deals to develop these projects to the benefit of coastal communities.
• Following the publication of its 2023-28 Strategy, HIE will continue to identify and pursue opportunities for development in marine renewable energy, aquaculture, marine biotechnology and processing.

The Islands Growth Deal

The Islands Deal Shell-volution project is now in the delivery phase and is designed as an innovative technical programme aimed at enabling future growth in the low-carbon and sustainable mussel farming sector in Shetland and eventually, throughout Scotland. This initiative focuses on enhancing output and efficiencies while promoting and maintaining employment opportunities. It will achieve its aims through significant investment in research and development through both universities and the private sector, increasing the productivity and resilience of existing farm sites and developing new locations. Growth Deal partners anticipate that employment supported by the sector will broadly double as a result of this investment. Consumer markets are considered to have capacity to absorb this gradual increase in production and mussel processors in Scotland will also benefit from the sustainable growth in farmed production.

The Island Growth Deal’s Outer Hebrides Food and Drink Programme will add value in fragile communities to preserve and enhance local markets for traditional fishing industries. The Programme includes life extension work to Acarsaid Harbour, on the Isle of Eriskay, which will allow continued access to the fishing grounds on both the west and east coast of the island and the creation of a gear storage facility at Vatersay Pier.

Inshore Fisheries Management and Coastal Communities

We have continued to strengthen our approach to co-management in 2024, and this has been key to our transition towards more agile management of inshore fisheries. Working with the Regional Inshore Fisheries Groups (RIFG) and through the Fisheries Management and Conservation Group (FMAC), interim management measures were introduced in May 2024 to help ensure the sustainability of our crab and lobster fisheries. These measures include:

• prohibition on landing of egg-bearing crab and lobster into Scotland; and
• controls on creel fishing vessels of more than 12 meters overall with a track record of landing more than 200 tonnes of crab and / or lobster in any 12-month period since 2020.

These interim measures are the first step in our overarching Inshore Fisheries Management Improvement (IFMI) Programme through which we will transition management of our inshore fisheries to a more agile and regionally focused model that captures the nuances and variations of Scotland’s inshore seas.

The process of developing a suite of interim measures in partnership with our stakeholders to improve sustainability of these fisheries highlighted that a number of management options benefit from some form of regional variation. This was echoed by evidence given to the Rural Affairs and Islands (RAI) Committee in the Scottish Parliament in September 2024, which reinforced that a more discrete, localised approach to fisheries management carries many benefits. In addition, it has become clear that a stronger co-management approach would benefit management of our inshore fisheries more widely. The Scottish Government is therefore keen to explore how a new framework for inshore fisheries management could ultimately coalesce with the delivery of Scotland’s Fisheries Management Plans, along with wider objectives and commitments.

We have plans to consult on our IFMI Programme’s final policy proposal in late 2025.

Seafood Trade

We also continued to work with the seafood sector to deal with the technical challenges arising from EU Exit. The Scottish Government will always champion the interests of the Scottish seafood sector and seek to do whatever we can to help the sector meet its full potential.

Recognising the impacts of current UK immigration policy on the seafood sector’s ability to access the labour they need to grow sustainably; we continue to make representations and submit evidence on those impacts to both the UK Government and the Migration Advisory Committee.

Following the change of administration after the UK General Election in July 2024, the Scottish Government welcomed renewed opportunities from the UK Government to consult, collaborate, and work constructively with the Devolved Governments to ensure the immigration system is fit for purpose. However, whilst the consistency of engagement with UK Government Ministers and officials regarding migration has improved under the new Labour Government, there continues to be no agreement to introduce tailored migration routes to Scotland, including Rural Visa Pilot / SRCIP.

Our consistent ask of the UK Government is that a geographical, rather than only a sectoral, approach to tailored migration is introduced.

However, on 2 December, the Deputy Prime Minister stated that; “the immigration system is UK-wide, and the Government has no current plans to introduce specific schemes for Scotland or for rural areas”, and on 13 January the UK Minister for Migration and Citizenship stated that UKG “will not be introducing a Scottish visa scheme or devolving control of immigration policy”.

In March 2025, the UK Minister for Migration and Citizenship wrote to the Minister for Equalities seeking proposals from the Scottish Government for consideration for inclusion in the UK Government’s Immigration White Paper whilst also noting that the UKG is still not minded to include any geographically tailored migration routes.

Commitment 2.6 Display leadership in the public sector by demonstrating that jobs and careers can be successful on islands.

Implementation Route Map 2024

• Workforce Dispersal aims to demonstrate that work can be carried out from most locations. The Scottish Government will continue to engage and reflect on this emerging work.
• Through the National Strategy for Economic Transformation (NSET), the Scottish Government has committed to implement a focused Talent Attraction programme to attract key skills and talent from the rest of the UK. The Talent Attraction programme includes a number of workstreams with the aim of attracting and retaining working age people with the skills to support Scotland’s economic recovery and help to address population challenges.
• The Graduate Retention programme aims to encourage students to stay in Scotland after completing their studies. This is an action stemming from the International Education Strategy.

Talent Attraction

As the talent attraction activity moved into the delivery phase in 2024, the work of attracting and supporting people to come to Scotland to live and work has been progressed through the launch of Scotland’s Migration Service (SMS). The SMS will play a crucial role in helping employers navigate the current immigration system and support individuals who have chosen to make Scotland their home.

Additionally, the Scottish Government is currently developing a new approach to skills planning that will enable a better understanding of skills needs at the national level, and how we can address them, particularly where solutions lie within the education and skills system.

Identifying Scotland’s strategic skills priorities, in addition to the insights we will continue to seek input from employers, which will help to inform the work of Scotland’s Migration Service in the future.

People Advice and Employee Relations

The Scottish Government continues to offer flexible hybrid working, supporting staff to work from a range of settings and locations. This means we can maximise opportunities to develop strong relationships with communities across the whole of Scotland. The Scottish Government estate is being reviewed so we can plan for affordable, inclusive, accessible, modern, secure, energy-efficient buildings and provide best value. We also continue to monitor the size, deployment and location of our workforce to best meet the needs of the communities we serve.

Commitment 2.7 Promote a thriving business environment that allows individuals to pursue a wide range of economic opportunities on islands.

Implementation Route Map 2024

• We will continue to ensure that new and revised policies, strategies and services are island-proofed by carrying out Island Communities Impact Assessments.
• In addition to mainstreamed business support, the Islands Programme will continue to invest in the development and safeguarding of critical island infrastructure. In order to ensure these investments provide best value for our island communities, the framework for the Islands Programme is underpinned by the principles of place-based community wealth building.

The Islands Programme

The Islands Programme is a crucial element in the implementation of the National Islands Plan. This capital investment supports infrastructure projects initiated by the six island local authorities, aimed at enhancing, creating, or protecting locally generated initiatives in line with the Strategic Objectives of the National Islands Plan.

Just over £15 million has been distributed since its inception in 2021-22, assisting 71 projects on 51 different islands. The £3 million available in 2024-25 was distributed between the ten following projects:

Shetland Islands Council

• £276,665 for Phase 3 of the Papa Stour Kirk regeneration on Papa Stour.
• £204,895 for the final stages of completion to the Fair Isle Bird Observatory and Visitor Accommodation.
• £139,992 for Phase 2 of the Hymhus community centre regeneration on Mainland Shetland.

Highland Council

• £409,258 for development of new onshore facilities at the community-owned Staffin Harbour, in the north-east of Skye.
• £350,000 for Community and Public Access Improvements on the Isle of Skye at Claggan Road, Neist Point, and Glen Brittle.

Comhairle nan Eilean Siar

• £651,000 for the Ionad Eilean na h-Òige (Islands of Youth Centre) to transform the former school into a vibrant heritage centre and Community Hub on Eriskay.
• £50,500 for Phase 1 of a new Taigh Chearsabhagh Creative Hub facility on North Uist.

North Ayrshire Council

• £414,425 for the final stage of regeneration of Millport Town Hall.

Orkney Islands Council

• £346,000 for new Airfield Terminal Buildings on Eday and Westray.

Argyll and Bute Council

• £157,265 for the expansion of the Thomson Court Care Home on the Isle of Bute.

Regional Economic Development

Regional partners are working closely to understand better and respond to opportunities on Scotland’s islands. As part of this, during 2024, research on Regional Transformational Opportunities was commissioned by the Highlands and Islands Regional Economic Partnership (HIREP) and Highlands and Islands Enterprise (HIE) to quantify these opportunities, timescales for potential investment and their implications for labour, skills and infrastructure. The research focuses very particularly on where a critical mass is required to support economic opportunity and how to facilitate this. Findings will be available in early 2025 and will support future planning, investment and delivery.

HIE Business Support

Through island-based area offices, HIE continue to provide tailored support to businesses and social enterprises to help them thrive and grow through providing advice, access to infrastructure and investment. HIE work closely with island-based Business Gateway officers to ensure a streamlined customer journey for island-based clients.

HIE approved 112 funding applications from 92 discrete island-based organisations amounting to £15.2 million, from January to December 2024. This funding levered in additional investment of £45.1 million.

Island Communities Impact Assessments

The requirement to carry out robust Island Communities Impact Assessments is essential for the sustainable economic development of islands. We remain committed to ensuring that new and updated policies, strategies, and services are thoroughly evaluated for their impact on the islands. The Islands Team is committed to supporting policy teams across the Scottish Government by addressing the unique needs of our island communities.

Commitment 2.8 Create and promote apprenticeships and job opportunities for young islanders.

Implementation Route Map 2024

• A Graduate Apprenticeship (GA) Enhancement Group has been established and will revisit the purpose and objectives of GAs to help inform future policy and ensure the strategic direction for GAs is in line with wider skills reform. This will include a review of how they can support island employers and young people.
• Modern Apprenticeship policy will also be reviewed to ensure that apprenticeships help to drive economic growth, address skills gaps in the labour market and support the delivery of Scottish Government commitments, including around net zero and sustainable island communities.
• Work is underway to develop an evidence base to improve the apprenticeship models for Foundation, Modern and Graduate Apprenticeships. We expect this work to take until the end of the year. We will then work with stakeholders and learners to make improvements to the models over the coming years.
• Skills Development Scotland (SDS) provide an all-age career service in every local authority highlighting the options available to people across Scotland, including Modern Apprenticeships. SDS undertakes further activity, together with employers, to highlight the importance of Modern Apprenticeships, particularly through Scottish Apprenticeship Week. We continue to work closely with SDS to support Modern Apprenticeships throughout Scotland.

Lifetime Skills and Apprenticeships

A key priority for Scottish Government is to encourage apprenticeship delivery across island communities to support inclusive growth. As part of this, we introduced a rural uplift for Modern Apprenticeship delivery which is an increased payment to training providers to encourage provision on islands and in rural areas.

In addition, travel and subsistence (including accommodation) funding is also available to support apprentices who must attend structured and formal off-the-job training (outwith normal daily travel requirements) where this is required by the Modern Apprenticeship Framework.

In 2023-24, there were 161 new Modern Apprenticeship (MA) starts in Na h-Eileanan Siar, 113 in Orkney and 182 in Shetland. MA starts were highest in sectors such as construction, sport, health and social care, and IT and other services.

As part of our apprenticeship reform work, we will be looking to reduce the complexity of the existing apprenticeship system, make it more transparent and maximise the value of investment to learners and the economy. We will also seek to minimise disruption to the current apprenticeship delivery models whilst improvements are made over the next few years.

As we work on apprenticeship reform over the next few years, we will consider the impact any changes will have on island communities.

Modern Apprenticeships

Current work to improve the evidence base for Modern Apprenticeships involves mapping the existing operating and funding model, including employer investment and the costs of delivery, alongside building on the Withers review to identify strengths and areas for improvement. This work is expected to continue until spring 2025 and will provide a foundation for future work with key stakeholders and learners to ensure that our considerable investment in MAs is further maximised. We will report on outcomes in late 2025 / early 2026 to enable the implementation of MA reform and improvements.

Graduate Apprenticeships

In the late spring of 2024, a Graduate Apprenticeship Enhancement Group was established, chaired by Professor Stephen Decent, Principal and Vice-Chancellor, Glasgow Caledonian University. Membership includes Colleges Scotland, Universities Scotland, Skills Development Scotland and the Scottish Funding Council.

The Scottish Government has and will continue to engage with Colleges Scotland, Universities Scotland, NHS Education Scotland and local authority representatives to better understand issues around the delivery of Graduate Apprenticeships and opportunities to support the wider public sector across Scotland. We have also commenced engagement with employers, including those on islands, with a view to making recommendations toward the end of the current financial year.

Foundation Apprenticeships

A Foundation Apprenticeship (FA) Enhancement Group was set up in 2022 following Education Scotland’s Review of FAs (published 29 March 2022), to support the future strategic direction of FAs in Scotland.

The FA Enhancement Group responsibilities include revisiting the purpose and objectives of FAs to help inform future policy ambitions and take forward the findings from the Education Scotland review, ensuring that the FA strategic direction is also in line with wider education reform.

Following the publishing of the Independent Reviews ‘It’s Our Future - Independent Review of Qualifications and Assessment’ and ‘Fit for the Future: developing a post-school learning system to fuel economic transformation, work has recommenced on the review of Foundation Apprenticeships. As part of this, the membership and terms of reference for the FA Enhancement Group are being reviewed and the reformed group will be stood up in early 2025.

This work will review the FA offer alongside the other vocational courses offered in schools to identify a path forward that most benefits young people. This first phase of activity aims to conclude by Summer 2025.

As part of the work to review Foundation Apprenticeships, we will consider improvements to encourage access for those in island communities, noting the potential for increased challenges with travel costs and timetabling.

Employability Hub

The Orkney Employability Hub, located in Kirkwall, offers a collaborative space for individuals seeking employment support, training and skill development. The hub, supported by Skills Development Scotland and the Local Employability Partnership, aims to provide a welcoming environment where people can access various services to enhance their employability journey.

Building on the successful partnership model between Comhairle nan Eilean Siar and Skills Development Scotland, a new Employability Hub will be established in the Town Hall at the heart of Stornoway town centre. This hub aims to foster collaboration by providing a shared space accessible to the wider Local Employability Partnership, promoting regular interaction and collaboration, and enhancing joint initiatives and resource utilisation. Through this constructive collaboration, we aim to better serve the community and address employability challenges.

Commitment 2.9 Ensure that skills provision is agile and responsive to future demand and enables individuals to take up opportunities.

Implementation Route Map 2024

• The National Strategy for Economic Transformation’s Skilled Workforce Programme aims to ensure that people have the skills they need at every stage of life to have rewarding careers and meet the demands of an everchanging economy and society and that employers invest in the skilled employees they need to grow their businesses.
• The Scottish Government is committed to ensuring the education and skills system is agile and responsive to the economic needs of our regions and sectors. As part of this, the Independent Skills Delivery Landscape Review was published in June 2023. The same month, the Scottish Government published our Purpose and Principles for Post School Education, Skills and Research setting out a range of initial priorities. Work on several of these priorities is underway and will be critical in ensuring that the education and skills system is more responsive to Scotland’s strategic skills needs.
• Informed by the recommendations of the independent Commission for the Land-Based Learning Review, the Scottish Government is developing an Implementation Plan to attract and equip more people with the skills and knowledge needed to work in land-based and aquaculture sectors. The Skills Action Plan for Rural Scotland (SAPRS) sets out our strategic, partnership approach to support the skills needs of rural and island economies. The Plan has now matured and we are developing our future approach for the sustainable, long-term co-ordination and delivery of skills for rural and island communities, taking account of the reform across the education and skills system.
• The Argyll and Bute Deal includes the Rural Skills Accelerator programme, which will serve island communities in the region.
• The Islands Growth Deal’s Talented Islands programme will improve the education and skills across all sectors in the Islands Deal programme, particularly in the net zero and renewables sectors

Islands Growth Deal

The Islands Growth Deal’s Outer Hebrides Campus Redevelopment project, which is almost complete, will upgrade facilities and learning technologies at UHI’s Stornoway campus to support the delivery of a modern curriculum that meets the expectations of the students, local economy and workforce. In addition, a range of mobile facilities and equipment will be established that further enable current outreach capability at learning centres in the Uists and Barra. The opportunities provided by the project will help to attract more people to remain or relocate to study in the islands, supporting both the local economy and skills base.

Skills for Rural Scotland

On 30 April 2024, we published the Scottish Government’s response to the Independent Land-Based Learning Review’s recommendations on how to attract more people into land-based and aquaculture sectors. We have drafted an Implementation Plan to act on the response working with public bodies, businesses, voluntary organisations and people and will publish this soon. Implementing our response to the recommendations will support the development of our rural, island and coastal economy and communities by helping to create employment opportunities in our land-based, aquaculture and environmental conservation sectors.

The Skills Action Plan for Rural Scotland (SAPRS) set out our strategic, partnership approach to support the skills needs of rural and island economies. The SAPRS has now matured and we are developing our future approach for the sustainable, long-term co-ordination and delivery of skills for rural communities and islands across Scotland, taking account of the reform across the education and skills system.

Commitment 2.10 Build on Scotland’s National Marine Plan to ensure that fishing and other economic activities stemming from the sea provide increased opportunities for island communities, but at the same time that they are pursued in a sustainable manner.

Implementation Route Map 2024

• The ongoing development of a second National Marine Plan (NMP2) is informed by a participative approach and extensive stakeholder engagement enabling co-design of policies in the plan. NMP2 will continue to set the context for sectoral and regional marine planning and provide greater clarity on the consideration of regional circumstances in decisions.
• As part of the assessment of the draft plan, we will undertake a Socio-Economic Impact Assessment (SEIA), and an Island Communities Impact Assessment (ICIA), providing dedicated opportunities for island communities to engage with the process, including via established Marine Planning Partnerships and Local Coastal Partnerships.
• The Islands Growth Deal’s Food and Drink programme will see investment in Acarsaid pier, a strategically significant harbour which allows easy access to the fishing grounds of both the west and east of Eriskay. The investment will provide for pier strengthening and remedial works, ensuring its operational functionality.

The development of Scotland’s National Marine Plan 2 has progressed throughout 2024. During the year, an extensive programme of stakeholder engagement has been delivered, including 14 marine sector workshops with over 100 organisations to gather feedback on draft high-level objectives and to inform and test potential policy approaches. In August 2024, a revised Statement of Public Participation and Stakeholder Engagement Strategy was published, outlining additional opportunities for stakeholder engagement throughout the development of the plan.

The second National Marine Planning Forum was hosted in November 2024, bringing together representatives from marine sectors, stakeholder groups and island communities, for cross-sector dialogue on area-specific issues and draft policy ideas.

A Regional Marine Planning Forum was also launched in November 2024, bringing together representatives from Regional Marine Planning Partnerships and Local Coastal Partnerships to share experiences and look to develop solutions to improve the regional marine planning process, including helping to clarify the relationship between national and regional planning.

Stakeholder feedback has been collected, collated, and utilised to inform the development of National Marine Plan 2 to steer the how the plan might respond to the demands of multiple marine uses and local contexts, and to provide greater clarity and direction for future regional marine planning.

A National Marine Plan 2 Planning Position Statement has been developed and publicly consulted on from 5 November 2024 to 28 January 2025. The statement summarises all feedback collected and presents work to develop a set of policy ideas, direction and intent for the plan. The purpose of the statement was to offer a timely opportunity to engage on the proposed policy ideas to help shape the development of a draft plan for consultation in late 2025.

Preparatory work has been completed for the Socio-Economic Impact Assessment and Island Communities Impact Assessment, with detailed analyses and further engagement with island communities to be undertaken in early 2025, including community-focused National Marine Plan 2 workshops hosted by Regional Marine Planning Partnerships and Local Coastal Partnerships.

Islands Growth Deal

Please see section 2.5 above for details on Shell-volution and the Outer Hebrides Food and Drink Programme.

Commitment 2.11 Ensure that sustainable land use including agriculture and forestry continues to provide jobs and opportunities to island communities.

Implementation Route Map 2024

• The Scottish Government will continue to work with the forestry sector to offer training opportunities to both new entrants and existing members, including in island communities.
• The Crofting Commission’s Crofting Development Team has two members of staff based in the Western Isles. Additional Commission staff are based on other islands, including Orkney. The Development Team works with crofting communities, grazings committees and landlords to encourage active croft use and management of common grazings. Its work also helps identify opportunities for new entrants.
• The Scottish Government continues to provide support to help sustain croft businesses. Officials continue to consider potential changes to the Crofting Agricultural Grant Scheme and are exploring the introduction of Standard Costs.
• Our Vision for Scottish Agriculture outlines our aim to transform how we support farming and food production in Scotland to become a global leader in sustainable and regenerative agriculture. This commitment will sit at the heart of a robust and coherent framework to underpin Scotland’s future agriculture support regime from 2025 onwards.
• The Agricultural Reform Route Map was updated in June 2024 and provides further clarity on how we intend to deliver the ambitions set out in the Vision. It illustrates the process for moving to a new agricultural support framework with information on milestones, measures being considered, support available and how to prepare for these first changes from 2025.
• The Agriculture and Rural Communities (Scotland) Bill unanimously passedStage 3 in June 2024. The powers in the Bill will be used to realise the Vision, delivering on our commitment to support agriculture. The Bill will enable multi-year transformation in support for farming and rural communities, as we move from legacy EU Common Agricultural Policy (CAP) schemes to future co-developed support
• The Agricultural Reform Programme (ARP) brings together different future support workstreams, including the Agriculture Reform Implementation Oversight Board (ARIOB), into a coherent programme structure. The detail required for future support is subject to active co-development and we remain committed to engaging widely with stakeholders.

Agricultural Reform Programme

Our Vision for Scottish Agriculture published in March 2022 outlines our aim to transform how we support farming and food production in Scotland to become a global leader in sustainable and regenerative agriculture. This commitment will sit at the heart of a robust and coherent framework to underpin Scotland’s future agriculture support regime from 2025 onwards.

The process for changing to a new agricultural support framework are set out in the Agricultural Reform Route Map with information on important dates, the measures being considered now, when current schemes will transition or end, the support available, and how to prepare for these first changes from 2025. This Route Map outlines what information and guidance the sector can expect from 2025 and when it will be available, most notably new conditions will be introduced to cross-compliance, conditions attached to Voluntary Coupled Support, Scottish Suckler Beef Support Scheme (SBSS), and getting ready for the Whole Farm Plan. These changes are designed to help all our farmers and crofters become more efficient, and to continue to produce food in a way that works for the climate and nature.

The Agriculture and Rural Communities (Scotland) Act was passed by the Parliament on 18 June 2024 and received Royal Assent on 30 July 2024. The powers in the Act will be used to realise the Vision, delivering on our commitment to support agriculture. The Act places a duty on Scottish ministers to publish a Code of Practice on Sustainable and Regenerative Agriculture, which will identify the activities and methods which constitute best practice for sustainable and regenerative agriculture.

The Act also places a requirement upon Scottish Ministers to publish a Rural Support Plan covering a five-year period, which must set out information on the expected use of Act. The first plan will build on the Vision and Route Map and outline the phased transition from legacy EU CAP schemes to the new four-tier payment framework.

Crofting

Since 2020, the Crofting Commission has increased its staff resource and has people based across the crofting counties, including the Western Isles and Orkney. The Commission has expanded its duties enforcement work which helps identify crofting opportunities for new entrants. During 2024, the Crofting Agricultural Grant Scheme (CAGS) Stakeholder Group was convened to discuss potential improvements to the CAGS, including the introduction of a Standard Costs model. It is hoped that when these improvements are implemented they will have a positive impact on croft businesses.

Forestry

Work continues on the implementation of the forestry sector’s skills action plan, and the development of a technical training hub – a public/private sector initiative to create a not-for-profit company to address market failure in certain areas of technical training, that will grow forestry businesses across the islands and the rest of Scotland

We continue to provide support to various community woodland groups on the islands, helping to create and maintain jobs for island communities.

We continue to work with Woodland Trust Scotland to deliver the Crofts Woodland Project on the Isle of Mull. There is increasing interest in native woodland creation schemes on the Isle of Jura, which will complement existing schemes on the island. We are working with partners, including Woodland Trust Scotland, to look at potential landscape-scale collaborative woodland creation projects which will expand forest habitat networks on the island and contribute to rainforest restoration.

Commitment 2.12 Work with relevant partners and stakeholders to make tourism more sustainable and less seasonal, and encourage development of a year-round offer across a wider range of islands that delivers economic, environmental and social benefits.

Implementation Route Map 2024

• The Scottish Government will continue to provide core funding to VisitScotland, our national tourism organisation, to help grow the value of tourism across Scotland, including our islands. In growing the value of the visitor economy, VisitScotland is focused on increasing regional and seasonal spread, increasing satisfaction – among visitors, residents and businesses – and developing responsible tourism.
• The Tourism and Hospitality Industry Leadership Group, co-chaired by the Minister for Business, will identify and influence the strategic game-changing actions needed to drive investment and ultimately lead to the sustainable growth of the tourism and hospitality industry across Scotland, including our islands.
• The Scottish Government will continue to support the Scottish Agritourism sector with the Cabinet Secretary for Rural Affairs, Land Reform and Islands co-chairing the Scottish Agritourism Strategy Implementation Board.
• Highlands and Islands Enterprise (HIE) will work directly with businesses and social enterprises in our island destinations to develop and sustainably grow the value of tourism, with a particular focus on supporting the transition to net zero, creating community benefit, embedding fair work principles, fostering innovation and increasing productivity.

The Islands Growth Deal

The Calanais Visitor Centre project is part of the Outer Hebrides Destination Development programme, which aims to develop a suite of tourism and cultural heritage projects with a particular focus on St Kilda and the Calanais stones. The Calanais project, which began its build phase in summer 2024, is critical to the visitor offer, given its strategic role in facilitating and servicing increased visitor numbers anticipated from the recently opened Stornoway Deep-Water Cruise Terminal.

VisitScotland

VisitScotland is engaged in the development of Growth Deal programmes and projects that will support the visitor economy, such as the Outer Hebrides Destination Development programme and the Orkney World Heritage Gateway project. It works closely with Regional Economic Partnerships to develop and deliver ambitious tourism plans and support partners to deliver tourism strategies on our islands. It has dedicated staff on a number of islands, supported by national resource and expertise in order to help deliver its activities. In 2024, a key example of its work to encourage responsible place development focused on the growth of Ecotourism in Fair Isle, Fetlar, Foula, Out Skerries & Papa Stour. VisitScotland became joint chair of the Islands With Small Populations (IWSP) group, alongside Highlands and Islands Enterprise.

VisitScotland’s market development approach is year-round promotion of the different experiences available on all of Scotland’s islands, across its consumer and intermediary marketing activities. One example in 2024 is work in partnership with Destination Orkney and Riverside Studio. VisitScotland influenced market development of The Outrun film release, taking the opportunity to promote Orkney as an ‘escape’ and ‘set-jetting’ destination through content development on VisitScotland.com, as well as supporting PR trips, resulting in coverage across multiple media outlets.

In supporting business development, VisitScotland provides specialist support for tourism businesses and community enterprises on islands to help develop quality experiences, build digital capability, reach new markets, and move towards more sustainable practices. One example in 2024, was work to advise the Board of the Isle of Bute Business Improvement District. This incorporates the local marketing group VisitBute and works with Argyll & Bute Council’s Rural Growth Deal on potential capital project delivery for Rothesay.

VisitScotland continues to support the delivery of Rural Tourism Infrastructure Fund (RTIF) projects across the islands.

Tourism and Hospitality Industry Leadership Group

Scotland Outlook 2030, Scotland’s national tourism strategy, sets out the shared ambition for Scotland to be a world leader for responsible tourism and to be one of the most economically, environmentally, and socially sustainable destinations in the world.

The Tourism and Hospitality Industry Leadership Group (ILG), co-chaired by the Minister for Business, provides strategic direction to drive this ambition. The ILG established five missions to help realise this ambition. These are:

• proud and valued people working for Scotland
• embracing rapid technological change
• community-led tourism
• net zero acceleration
• sustainable transport

These missions inform consideration of which stakeholders are a priority engagement for the ILG. Each mission has significant relevance to island communities and the sustainable growth of tourism to Scotland’s islands.

In 2024, the ILG took part in strategic discussions to support the sustainable growth of the visitor economy and enhance the benefits of tourism for our visitors, our communities, and the people and businesses at the heart of our industry.

Agritourism

The Scottish Government has committed to providing up to £443,000 of support to Scottish Enterprise to establish a new Agritourism Monitor Farm Programme over the 2023-24 and 2024-25 period. We believe Scottish Agritourism has a long-term sustainable future that delivers a high-quality, authentic visitor experience with agriculture and food and drink at its core. Agritourism can sustain the future of family farms with self-generation of income and contribute to our islands’ economies by keeping multiple generations of farming families in employment.

An Agritourism Implementation Board, co-chaired by the Cabinet Secretary for Rural Affairs, Land Reform and Islands, brings together economic development agencies, government (local and national) and the private sector to oversee the implementation of the 2021 Scottish Agritourism Strategy. The Scottish Government has provided £70,000 of funding to Scottish Agritourism over 2022-24 to assist with delivery and leadership of Scotland’s Agritourism Growth Strategy. We are providing a further £38,000 funding for continuation of this support in 2024-25.

In September 2024, our Programme for Government stated that the Scottish Government will “continue to implement the Strategy for Sustainable Growth of the agritourism sector and support Scottish Agritourism as they prepare for the World Agritourism Conference in Scotland in 2026”. We are therefore providing Scottish Agritourism with £60,000 of funding in 2024-25 to support with preparations for Scotland hosting the 2026 World Agritourism Conference. It is proposed that delegates to the conference will have the opportunity to visit Agritourism businesses in every area of Scotland including the islands.

Highlands and Islands Enterprise

In 2024, HIE approved 19 individual tourism projects, granting £1.4 million towards development in our island destinations. This represents total project cost of £20.8 million.

• Supporting the transition to net zero – in 2024, HIE’s Green Grant Fund supported four tourism businesses in the Outer Hebrides to reduce their carbon emissions. Hotels in Stornoway and Benbecula were funded to implement energy efficiency measures including wall and roof insulation, remote heating controls and replacement windows. The hotels were further supported to provide electric vehicle charging points. HIE’s investment across the four projects was £165,000. A further round of Green Grant funding was launched in 2024 with four tourism projects currently at due diligence with a potential investment of over £500,000 covering Orkney, Shetland, Outer Hebrides, and Arran.
• Building community capacity – during 2024, HIE’s Delivery Resource Project supported community organisations to enable the employment of local delivery officers to deliver prioritised projects for the benefit of the community, many of which contribute to the wider visitor economy. Projects vary but are typically asset-based, income-generating developments which create employment and improve resilience in responding to the barriers of remoteness and distance to markets. The impact is transformational for island communities and assists in reversing population decline and supporting a vibrant and sustainable visitor experience.
• Fostering innovation and increasing productivity – HIE’s innovation programme was delivered to six tourism clients across Skye, Arran, Lewis, and Shetland during 2024. These bespoke packages of support aim to enhance productivity and competitiveness in growth-oriented and place-based businesses, whilst stimulating innovation activity.

Commitment 2.13 Ensure that crofting continues to provide jobs and opportunities to island communities.

Implementation Route Map 2024

• The Scottish Government will continue to provide support to help sustain croft businesses, through the Crofting Agricultural Grant Scheme (CAGS) and the Croft House Grant (CHG). Officials are considering potential changes to both these schemes including increasing the value of individual grants. As part of the CAGS work, officials are also exploring the introduction of Standard Costs and widening the scope of activities supported.
• We have undertaken a public consultation on Crofting Law Reform. It includes proposals to make crofting regulation less onerous for active crofters and the Crofting Commission. There are also proposals to make it easier for crofters to cooperate with landlords and benefit from implementing projects on common grazings, such as peatland restoration or woodland creation.

Crofting Policy

The Scottish Government recognises that crofting plays a key role in sustaining rural and island businesses and communities. Each year the Scottish Government approves and provides approximately £40 million to croft businesses through various support mechanisms including the crofting-specific Crofting Agricultural Grant Scheme (CAGS), Croft House Grant (CHG) and Cattle Improvement Scheme (Bull Stud), and also the Less Favoured Area Support Scheme (LFASS), Basic Payment Scheme (BPS) and Greening, and the beef and sheep schemes.

The CAGS aids and supports the development of agricultural production on crofting businesses, thereby sustaining the economic basis of crofting. In 2024, the Scottish Government paid over £3 million in CAGS funding, helping over 500 croft businesses. Scottish Government officials, working together with stakeholders, continue to review the CAGS, having recently agreed to extend the grant condition period for agricultural buildings and the introduction of standard costs. The next phase is to consider the scope of activity supported.

The CHG provides support to improve and maintain the standards of crofter housing, with the aim of attracting and retaining people within our island communities, allowing them to achieve the full potential of their crofts while generating economic activity. In 2024, the government awarded £630,000 in Croft House Grants, helping 22 crofters and their families, approximately half of whom were island crofters.

In June 2024, the Scottish Government launched its public consultation on proposals for crofting law reform. During July and August, 15 stakeholder events, attended by 257 individuals were held throughout the crofting counties where the consultation proposals were discussed alongside general crofting matters. In November 2024, the analysis of the responses to the public consultation was published, and work continues on the development of the Crofting Bill.

Commitment 2.14 Deliver the Islands Passport initiative, which promotes the opportunity to visit a wider range of Scotland’s inhabited islands, encouraging visitors throughout all seasons and by public transport, thereby delivering economic opportunities for island communities.

Commitment Fulfilled.

This commitment was fulfilled in 2022. Please see the National Islands Plan Annual Report 2022 for further details.

Commitment 2.15 NIP Commitment - Work with the food and drink industry to leverage its economic potential and explore options for sharing some of its benefits with island communities.

Implementation Route Map 2024

• We are providing £10 million over 2023-25 towards the work of the new Food & Drink Industry Strategy. The strategy sets out aims and actions for the sector to help food and drink businesses throughout Scotland leverage their economic potential.
• The Outer Hebrides Food & Drink Programme will add value in fragile communities via £1.5 million of Islands Growth Deal investment that seeks to preserve and enhance local markets for traditional fishing industries. It will enable the sustainable development of the islands’ primary food production industries, develop local markets and respond to sectoral opportunities linked to product diversification.

Scotland Food & Drink has received £10 million of funding to drive actions over years one and two of the Food & Drink Industry Strategy “Sustaining Scotland Supplying the World”. Work in 2024-25 has included hosting regional Sourcing Scotland events in collaboration with Regional Food Groups to promote local sourcing. In addition, businesses across the islands were offered bespoke training and coaching to ensure they were able to showcase their food and drink offering at the global Showcasing Scotland held in Edinburgh in 2024. We are working with the Scotland Food & Drink partnership to consider funding options for the strategy in 2025-26.

Commitment 2.16 Seek to expand the range of economic, social and environmental benefits that island communities derive from forestry.

Implementation Route Map 2024

• Scottish Forestry will continue to work with a range of partners to increase the benefits delivered from forests and woodlands on the islands. This includes carbon sequestration and climate change mitigation, enhancing and protecting Scotland’s rich biodiversity, growing inclusive and sustainable island economies and helping communities adapt to the changing climate and improve their health and well-being.

Scottish Forestry

Over the past year, we have contributed to the forward-thinking trees and woodland strategies drafted by Orkney and Shetland Islands councils. We have also helped to restore and expand Crobeg native woodland – one of just twelve important remnant native woodland sites identified on Lewis & Harris, with Crobeg containing the largest hazel grove in the Western Isles. With support from the Croft Woodlands Project, Forestry Grant Scheme (FGS) funding has enabled the management and regeneration of this key native woodland with over 20 hectares of natural regeneration anticipated. This is the largest such restoration project underway in Lewis.

FGS funding also supported a significant increase in planting on Shetland in 2024. Four new native woodland sites have been successfully planted at Kergord, Danewgaff and Gorie, and at Otterswick on Yell which is one of the most northerly inhabited islands in Scotland.

There has been continued support through FGS for community-owned woodlands on the islands including the Sleat long-term forest plan renewal and Eigg tree production and replanting.

Forestry and Land Scotland

Forestry and Land Scotland (FLS) continues to sustainably manage the Scottish Minister’s National Forest and Lands on the islands, supporting local economies (through direct forest management activity, outdoor recreation use and related wildlife tourism), increasing biodiversity and providing opportunities for people to access and use local woodlands.

In 2024, Forestry and Land Scotland renewed its 10-year Land Management Plans for North Mull and Central Mull, with well-attended “drop-in” public consultations events to input to the Plans, demonstrating the interest that islanders have in their local forests. These forests provide important habitats for wildlife, produce sustainable timber and are a valuable resource for both locals and visitors to Mull. For example, at Aros Park, FLS is assisting Tobermory Harbour Association to put in place services for their Aros Waterfront development following the successful asset transfer of the old pier buildings and slipway in 2019.

FLS also continues to maintain and promote high-quality visitor facilities on Skye and Raasay, such as the Otter Hide at Kylerhea where further investment is planned in the facility, as well as delivering substantial forest management programmes, including peatland restoration in the Kinloch Hills area.

FLS continues to run the Community Asset Transfer Scheme providing opportunities for communities to buy or lease land in support of local objectives and is engaging with a number of island communities currently developing asset transfer requests.

Commitment 2.17 Review Scotland’s National Planning Framework to ensure sufficient flexibility for island interests, including in how best to meet housing need.

Commitment Fulfilled.

This commitment was fulfilled in 2022. Please see the National Islands Plan Annual report 2022 for further details.

Commitment 2.18 Reflect the National Islands Plan and relevant regional perspectives in the review of the National Planning Framework and preparation of National Planning Framework 4.

Commitment Fulfilled.

This commitment was fulfilled in 2022. Please see the National Islands Plan Annual report 2022 for further details.

Commitment 2.19 During the preparation of the 2020 Infrastructure Investment Plan, consider the implications of the National Islands Plan on future infrastructure requirements.

Commitment Fulfilled.

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

Commitment 2.20 Recognising the services that island abattoirs provide to their communities, work with relevant partners to deliver sustainable and economical viable operations.

Commitment Fulfilled.

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

Small Producers Pilot Fund (SPPF)

The Scottish Government remains committed to continuing to support small producers and empowering them to play a key role in making our Vision for Agriculture a reality.

Private kill abattoirs play a crucial role in Scotland’s food supply chain. Throughput is vital to ensure that plants are fit for purpose and have a viable future. Private kill abattoir funding has been provided to QMS, the Scottish Agricultural Organisation Society (SAOS), Munro’s of Dingwall, Shetland, Wishaw and Mull. Funding will also be provided to Barra and Orkney.

The Small Producers Pilot Fund (SPPF) replaces the Small Farm Grant Scheme (SFGS) and continues SG support for small producers. The Cabinet Secretary publicly directed that SPPF explore solutions to challenges surrounding abattoirs and small producers’ access to private kill services.

In 2024-25 £1 million of resource funding was allocated to SPPF. We are currently providing support for private kill abattoirs, including support to increase facilitation of private kill services, through funding of up to:

• £20,500 to the Scottish Agricultural Organisational Society (SAOS) over the current FY to work with private kill abattoirs and facilitate engage in the SPPF.
• £45,000 to Munro’s of Dingwall Abattoir, to train and mentor a private kill coordinator, engage with customers, and coordinate services to help stabilise their private kill service provision.
• £40,000 to Shetland Abattoir, to train and mentor a private kill coordinator, engage with customers, and coordinate services.
• £35,000 to Wishaw Abattoir, to establish a new coordinated service for the distribution of meat produce back to clients.
• £36,000 to (QMS) to take over coordination from SAOS, to enable support to be provided to private kill abattoirs across Scotland for 12 months, and to secure a suitable person to manage this work.
• £45,000 to Mull Abattoir to increase throughput on private kill days, co-ordination of livestock pickups and increased co-ordination for chill facilities in Oban.

In addition, we expect the following activities to be finalised by the end of this Financial Year 2024-25.

• £35,000 to Barra Abattoir, to support them to develop private kill coordination and engagement, butchery training, and a business plan for succession.
• £15,000 to Orkney Auction Mart, to assist them to update their business plan for the abattoir in Orkney, and to provide support for the creation of a stakeholder co-operative and knowledge transfer for staff that will run the abattoir (to ensure the final design makes best use of current knowledge in sites elsewhere).

The First Minister visited Orkney Auction Mart in February 2025, and re-affirmed the Scottish Government’s commitment to supporting small producers and strengthening Scotland’s food supply chain.

Commitment 2.21 Ensure that legislation and policy relating to early learning and childcare is appropriately island proofed.

Implementation Route Map 2024

• The Scottish Government will continue to engage with island stakeholders in the development of Early Learning and Childcare policy and legislation, including conducting an Island Communities Impact Assessment where appropriate.

Early Learning and Childcare

The Scottish Government recognises how vital early learning and childcare (ELC) is in island areas, both in relation to giving children the best start in life and supporting families to work and study. We recognise the provision of childcare is a key factor to support more people in island communities to enter and sustain study, training, employment and starting a business, and will continue to identify, develop and enable place-based solutions to navigate the challenges island communities face

The Scottish Government continues to work in close partnership with COSLA in the delivery of ELC, and especially in continuing to deliver and realise the benefits of the 1,140 hours programme. In working with local government to enable the delivery of high-quality ELC services, we ensure the needs of island communities are reflected and met.

We fully fund local authorities to deliver 1,140 hours of ELC to eligible children, backed by almost £1 billion of funding each year, with each council responsible for ensuring that local provision meets families’ needs. The draft 2025-26 budget also includes funding to provide local authorities with an additional £9.7 million from 2025-26 to increase the pay of early learning and childcare workers delivering funded childcare to at least the Real Living Wage from next April.

To support delivery of the 1,140 programme, the Scottish Government provided £476 million of capital funding between 2017 and 2021 to local authorities to support them to refurbish, re-purpose and extend existing nursery settings, and to create over 150 new-build facilities across Scotland. This included approximately £9 million invested across Orkney, Shetland and the Western Isles. Individual local authorities have been responsible for deciding how this funding is used, based on local, evidenced need.

At a national level, the Scottish Government is currently supporting projects to improve childcare provision in island communities, including through the National Islands Plan, our Early Adopter Communities, the Addressing Depopulation Action Plan and the Programme for Scotland’s Childminding Future.

We are carrying out extensive engagements with island communities and local authorities to ensure the forthcoming new National Islands Plan addresses their needs and supports their ambitions. Population attraction and retention will be the key and overarching objective for the new Plan. We have heard very clearly that access to childcare remains challenging on some islands. The draft budget for 2025-26 allocates £5.3 million for a new round of the Islands Programme. If the budget is approved, we will be able to work with local authorities to support further critical infrastructure projects on islands.

Our childcare Early Adopter Communities are expanding access to affordable childcare for low-income families with children from early years through to the end of primary school, and evaluating the difference this can make. This includes work in Shetland which will help us gather learning and insights about what it takes to deliver childcare that meets the needs of families living in island communities.

Our Addressing Depopulation Action Plan, published last February, sets out the Scottish Government’s strategic approach aimed at supporting local communities facing population decline. As part of this Action Plan, we have established an Addressing Depopulation Fund, whereby five local authorities – including the Western Isles – have received £60,000 each in the current financial year to trial bespoke interventions in support of population attraction or retention, which includes childcare.

We have funded the Scottish Childminding Association to develop a new national 3-year programme of childminder recruitment and retention. Backed by more than £1 million of Scottish Government funding in 2024-25, the Programme for Scotland’s Childminding Future launched in June 2024. The aim of the Programme is to start addressing the decline in the childminding workforce which we have seen in recent years through enhanced recruitment, as well as by testing improvements to the experience of existing childminding professionals through retention pilots. Currently, Argyll and Bute are participating in the recruitment strand of the programme, with the retention programme active in Orkney, Shetland and the Western Isles.

Commitment 2.22 Ensure that opportunities to develop the wellbeing of the Gaelic language and increase the number of speakers and users are considered as part of sustainable economic development.

Implementation Route Map 2024

• We will continue to explore and develop a broad range of opportunities that promote and support the Gaelic language. These initiatives have a significant economic impact, through direct employment and attracting visitors while simultaneously supporting grassroots, community language use and the wellbeing of the Gaelic language.
• The Scottish Government will publish its formal response to the Short Life Working Group on Economic and Social Opportunities for Gaelic. This provides an economic perspective on Gaelic development in Na h-Eileanan an Iar, Skye & Lochalsh, Tiree and Islay.

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 and Lochalsh, Tiree and Islay. Its findings demonstrate how Gaelic boosts the economy and how the economy, in turn, can better support Gaelic. In the Scottish Government’s response Gaelic is recognised as a key part of the human and cultural capital of the Highlands and Islands and an asset whose development goes hand in hand with economic prosperity. This forms part of a wider integration of Gaelic development and economic development most notably seen in the Deputy First Minister’s joint portfolio for the Economy and Gaelic.

The Short Life Working Group provided 45 recommendations across multiple sectors of Highland and Island life, the majority of which the Scottish Government has accepted. Alongside our partner bodies, such as Highlands and Islands Enterprise and Bòrd na Gàidhlig, we will shortly begin implementing our response to those.

Commitment 2.23 Support women in agriculture on Scottish islands to succeed, including encouraging their participation in the leadership development programme, addressing unconscious bias by organisations and businesses and breaking down cultural barriers.

Implementation Route Map 2024

• We will encourage the delivery of Islands-specific Women in Agriculture Development Programme courses during the 2024-25 financial year.
• We will provide targeted support for Practical Training Funding to enable training courses to be hosted on islands.
• We will provide additional travel and subsistence support for island women to attend courses on the mainland.
• We will continue to promote online and in person training provision for women on Scottish islands.
• We will encourage Women in Agriculture groups to increase networking on islands.

Women in Agriculture

Women are under-represented at all levels in Scottish Agriculture, and the Scottish Government is committed to building a fairer society. In doing so, we plan to develop and publish a gender strategy, and explore, amongst other things, opportunities to develop skills and fund practical training, eradicate child poverty, and enable women to grow new sustainable and resilient new businesses.

The 2024-25 Programme for Government committed to bringing forward a Gender Strategy for Agriculture, which is currently being developed. The Strategy aims to both support our commitment to gender equality and ensure that everyone in the agricultural sector is empowered to access opportunities, realise their potential, and encourage business innovation.

The Women in Agriculture Development Programme funds various courses where women in agriculture meet other women and improve their networks. We committed £600,000 to deliver support for this financial year to help women and young people develop new agricultural skills and further their careers within the farming sector, thus creating equality of opportunity and prosperity, and supporting business innovation by delivering the following activities:

• supporting training courses for women in agriculture.
• developing a Gender Strategy for Agriculture - to start delivery of our commitment to gender equality, set out in the Programme for Government 2024-25, ensuring future agricultural policy places equality at the heart of its development.
• funding women’s participation activities through the Scottish Crofting Federation to represent smaller communities of women in crofting and provide them with a voice in the industry.
• supporting GRASS Ceiling, a research project to support the Women in Agriculture Development European Grass Ceiling project and funding the Women in Agriculture Scotland group to hold events
• funding and delivering the Women in Agriculture Scotland group to deliver their objective of supporting more women across Scotland by reducing isolation and increasing supportive networks.

Women living and working in Scottish agriculture are an essential part of the future of island economies. Developing and expanding their skills and talents will ensure the long-term sustainability of the agricultural industry, enabling island businesses to be more resilient and adaptive into the future.

The Women in Agriculture Programme enables all areas of the Scottish Government to draw on our learning and targeted approach to support for women when developing their policies and practical solutions. It is more advanced than that of any other country in the UK, and the EU and OECD are keen to engage with us to share learning around the development of the programme to inform their policies.

We are supporting the Women in Agriculture Development Programme to develop a Theory of Change, which will map out the strategic outcomes of the Programme, including quality of opportunity. The Theory of Change will identify key evidence, and evidence gaps, to understand how agricultural policy activities can improve gender equality.

The Scottish Government will be commissioning a survey of around 3,000 farming and crofting households to improve our understanding of child poverty, equalities and social aspects of agricultural households across Scotland. The findings from this work will provide evidence on how best the Rural Affairs, Land Reform and Islands portfolio will be able to contribute to equalities and human rights, meet our statutory obligations on Impact Assessments, the Equality Duty and the Fairer Scotland Budget statement, as well as supporting the Agricultural Reform Programme.

Commitment 2.24 Work with relevant local authorities to develop regional food and drink action plans to support growth of the sector on islands, including a focus on the vital Whisky sector.

Implementation Route Map 2024

• We will continue to engage with Scotland Food & Drink and other key industry stakeholders through government subgroups and various food and drink action plans to identify opportunities to further support the sector and help stimulate economic growth. Through the implementation of the food & drink industry strategy ‘Sustaining Scotland Supplying the World”. we will continue to provide funding and support to our regional food groups, including the three island groups, enabling them to promote local food and drink businesses to develop strength and long-term sustainability.

Regional Food and Drink Plans

The Scottish Government, in partnership with Scotland Food & Drink continues to support our 16 regional food groups including five island groups on Arran, Bute, the Outer Hebrides, Orkney and Shetland to increase economic growth by ensuring easy access of locally sourced high-quality products across all regions.

Through the work of these groups and alignment with local authorities, we continue to see boosted local sales, rises in food tourism opportunities and experiences as well as wider regional collaboration. This means more of our quality products on independent retailer and supermarket shelves, on bar and restaurant menus, and in visitor attractions.

Our islands have also previously benefitted from our Regional Food Fund projects – from hosting consumer events, such as markets and festivals, the development of food hubs and food and drink trails, to strengthening local food promotion.

We continue to work to identify new ways to support food and drink SMEs in ways that enhances Scotland’s food industry profile through cross-policy group engagement with relevant industry leads that will in turn boost Scotland’s reputation for having exceptional and authentic food and drink.

Commitment 2.25 Work with relevant local authorities to encourage take up of Food For Life accreditation to help stimulate local sourcing in public sector settings.

Implementation Route Map 2024

• We continue to support the delivery of the Food for Life Programme (FFL) across Scotland, with a primary focus on school meals. There are currently 15 councils who hold FFL accreditation, with Orkney and Shetland awarded bronze level accreditation in 2020-21 and 2021-22 respectively.
• In 2024-25, the Soil Association will continue to work with schools on maintaining accreditation as well as trying to embed FFL principles in the wider Scottish Public sector.

Food and Drink Industry Growth

We continue to support the delivery of the Food for Life Scotland Programme (FFLS) which has had a primary focus on school meals, increasing the amount of healthy and locally sourced produce being served with 17 local authorities currently holding an accreditation award. This includes Orkney and Shetland, who both continue to hold bronze FFLS awards.

In 2024, FFLS further expanded the programme, embedding FFLS principles into the wider public sector with 5 organisations currently holding an award at bronze or silver level across 14 sites.

The Soil Association continue to work with local authorities to help maintain or upgrade their accreditation as well as those unaccredited councils to encourage them to apply for a FFLS accreditation.