National Islands Plan Annual Report 2025

Transport

Strategic Objective 3 – Improve transport services

Commitment 3.1 Ensure that existing and future transport-related policies, strategies and services are fully island-proofed so that they truly meet the needs of island communities.

To support young islanders and their families, we introduced free inter-island ferry travel for under-22 residents in Orkney, Shetland and Na h-Eileanan Siar in April 2025. This makes it easier for young people to access education, training, employment, and social opportunities. In addition to this, we also expanded the eligibility for the concessionary ferry vouchers scheme, from June 2025, so that all island residents aged 16-21 can make four free journeys per year between their island and the Scottish mainland. This change has increased the number of eligible island card holders to around 30,000.

Island local authorities face challenges in renewing their ferry fleets and infrastructure. While developing investment cases and securing funding options is the responsibility of each council, Scottish Ministers have provided targeted support where possible. This has included the establishment of Ferry Taskforces in partnership with Orkney Islands Council and Shetland Islands Council.

In 2025-26, both local authorities received a one-off allocation of £10 million to support inter-island connectivity projects, in addition to funding provided through the Local Government Settlement. Separately, Orkney Islands Council was awarded £3 million to pilot two electric ferries and progress the business case for renewing its inter-island fleet.

Transport Scotland continues to undertake Island Communities Impact Assessments and consult with island stakeholders in relation to future strategies and policies.

As noted in commitment 3.12, as part of the Islands Connectivity Plan, we are undertaking a series of Community Needs Assessments for routes within the Clyde and Hebrides and Northern Isles Ferry Services networks.

Commitment 3.2 Engage with local authorities, island communities and transport operators in developing regulations and guidance for the bus services provisions of the Transport (Scotland) Act 2019, which aim to enable local authorities to better respond to local needs.

Through the Transport (Scotland) Act 2019, the Scottish Government has, given bus powers to local and regional transport partnerships to facilitate partnership working, franchising, and local authority-run services. The final regulations needed for bringing the bus franchising powers into full effect came into force on 10 June 2025.

The Scottish Government is currently in the process of finalising the draft guidance for bus franchising. In December 2025, we shared a copy of the draft statutory guidance on bus franchising with the Scottish Parliament’s Net Zero, Energy and Transport Committee. The document was also shared with various stakeholders, including local authorities, Regional Transport Partnerships such as Strathclyde Partnership for Transport (SPT), and operator representatives for consideration and comment prior to finalisation and formal publication in the spring.

Commitment 3.3 Produce a long-term plan and investment programme for new ferries and development at ports to improve resilience, reliability, capacity and reduce emissions to give confidence to island communities on our ongoing commitment.

Commitment fulfilled.

The final version of the Vessels and Ports Plan was published on 2 May 2025. It provides a long-term plan, to 2045, for the vessel and port investments on the Clyde and Hebrides and Northern Isles Ferry Services (CHFS and NIFS) networks considered necessary to address the key challenges of reliability and resilience.

Commitment 3.4 Develop a new Ferries Plan that will meaningfully contribute to delivering the outcomes of wider Scottish Government strategies as set out in the National Transport Strategy and this National Islands Plan.

The final versions of the Strategic Approach and the Vessels and Ports Plan, both part of the Islands Connectivity Plan, were published in May 2025.

The Islands Connectivity Plan replaces the Ferries Plan (2013-22) and sets out how ferry services, supported by other transport modes, will be delivered, and strengthened. It has been developed within the context of the National Transport Strategy and the National Islands Plan and informed by the outcomes of the Strategic Transport Projects Review.

The development of a Ferries Accessibility Standard – a key commitment in the Strategic Approach – is already underway with engagement being undertaken with disabled people and their carers to understand their lived experience. The standard is being developed in partnership with the Mobility and Access Committee for Scotland (MACS), ferry operators and Caledonian Maritime Assets Ltd. (CMAL). It will be published later in 2026.

Commitment 3.5 As part of the next Ferries Plan, review the impacts of Road Equivalent Tariff (RET) and consider future ferry fares policy options that will meet the needs of islanders and support island economies.

The Island Connectivity Plan (ICP) Strategic Approach has set out the strategic direction of future ferry fares policy. This follows a period of consultation of the Fair Fares Review and the Islands Connectivity Plan, which included a review of the Road Equivalent Tariff (RET) policy for island travel.

The First Minister confirmed that there are no plans to remove the RET for island visitors.

Commitment 3.6 Also as part of the Ferries Plan, review and promote integration between ferries and other modes of transport on the mainland and islands, with a view to better facilitating the use of active, public or shared transport for all or part of journeys to and from islands in an affordable and accessible manner.

The Islands Connectivity Plan (ICP) Strategic Approach foregrounds integration as one of its key objectives. This also remains a priority for Transport Scotland through the National Transport Strategy’s goals of more accessible, affordable and available public transport services.

In addition, CalMac’s Enhancement and Change Plan features a number of commitments to strengthen transport integration, including to “develop partnerships with Scotrail and other providers to enhance integration” and “collaborate with Transport Scotland to create a forum for resolving timetable conflicts affecting customer experience”.

Commitment 3.7 For the Clyde and Hebrides ferry services, develop and introduce a new booking, reservation and ticketing system, with Smart Ticketing capability, to replace the existing system.

Commitment fulfilled.

This commitment was fulfilled in 2024. Please see the National Islands Plan Annual Report 2024 for further details

Commitment 3.8 Use the feedback from the NTS consultation to inform the NTS Delivery Plan which will seek to address the different transport challenges faced across Scotland’s different areas and regions including islands.

Commitment fulfilled.

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

Commitment 3.9 Determine strategic transport investments from our island communities through STPR2 – which will also inform Transport Scotland’s Ferries Plan 2.

Commitment fulfilled.

This commitment was fulfilled in 2022 with publication of the second Strategic Transport Projects Review (STPR2).

STPR2 made four recommendations specific to island communities:

• Recommendation 18 – Supporting integrated journeys at ferry terminals.
• Recommendation 24 – Ferry vessel renewal and replacement and progressive decarbonisation.
• Recommendation 41 – Potential fixed links in Outer Hebrides and Mull.
• Recommendation 42 – Investment in port infrastructure to support vessel renewal and replacement, and progressive decarbonisation.

In addition, several other recommendations included in the review are also applicable to island communities covering active travel, support for electric vehicles, road safety and public transport.

The Ferries Plan 2 predates the completion of STPR2 and has been superseded by the Islands Connectivity Plan (ICP) which expands its focus beyond ferries to include aviation, fixed links and onward travel for islands and peninsulas.

Commitment 3.10 Working in partnership with local authorities and communities to improve walking and cycling infrastructure, the design of place and access to bikes, facilities, promotion and education to make walking and cycling the most popular choice for shorter everyday journeys including as part of multi-modal journeys.

Active Travel Infrastructure Fund (ATIF)

Transport Scotland transitioned to a new tiered delivery model for active travel infrastructure with the introduction of the Active Travel Infrastructure Fund (ATIF) for 2024-25 and 2025-26. This provides both block grant funding to all local authorities through Tier 1 and prioritised funding to local authorities, Regional Transport Partnerships and National Park Authorities through Tier 2.

People and Place Programme

Transport Scotland funds active travel behaviour change interventions through the People and Place Programme. The latter was established in 2024-25 as part of active travel transformation, moving Transport Scotland away from a centralised national funding of services to a devolved model.

The People and Place Programme is built on a delivery model rolled out by the seven Regional Transport Partnerships (RTPs) in conjunction with local authorities and other delivery partners. This approach ensures that projects can be tailored to the specific needs of island communities, whilst still offering access to a wider national programme when needed.

In 2025-26, the People and Place Programme funds projects aimed at increasing the numbers of people walking, wheeling and cycling to school in Na h-Eileanan Siar. In Shetland, ZetTrans is developing a programme of interventions aimed at schools and young people and key employers in the area.

The Bus Infrastructure Fund

The Bus Infrastructure Fund (BIF) operates in a similar way to ATIF and has seen direct awards to Orkney Islands Council (£177,000) and Shetland Islands Council (£155,000) to ‘top up’ their Tier 1 allocations.

The BIF is aimed at improving accessibility to bus services; the quality of bus infrastructure including perceived safety; and integration between bus and other modes of transport.

Commitment 3.11 Explore the potential to reduce the need to travel by usin g the planning system to promote places which bring people and services together.

Local Development Plans

Transport Scotland has engaged with Shetland and Orkney Councils in 2025 on the preparation of their respective Local Development Plans (LDP) which are being developed in line with the Scottish Government’s LDP Guidance and National Planning Framework 4 (NPF4). We will continue to liaise with island local authorities as their plans progress to promote NPF4, the National Transport Strategy, the second Strategic Transport Project Review (STPR2) and other associated guidance. These documents promote a reduction in the need to travel through alignment of transport and land use planning that promotes local living, travelling by more sustainable modes and investing in existing infrastructure.

Development Planning Transport Appraisal Guidance

An updated Development Planning Transport Appraisal Guidance was published in October 2025 after significant engagement with stakeholders, included island authorities. This updated guidance is intended to enable the preparation of a Transport Appraisal to provide a robust framework for the consideration of land use and transport, and to inform investment decision making for Local Development Plans.

Commitment 3.12 Subject to requirements as set out in the Clyde and Hebride s Ferry Service and the Northern Isles Ferry Service contracts, we will always strive to improve, where necessary and possible, issues relating to freight and will engage proactively with operators, communities and stakeholders as appropriate.

Transport Scotland continues to engage with operators, communities and stakeholders regarding freight matters.

As part of the Islands Connectivity Plan, Community Needs Assessments (CNAs) were introduced for routes within the Clyde and Hebrides and Northern Isles Ferry Services networks.

These include assessments for Coll, Colonsay, Iona, Kerrera, Lismore, Mull, Tiree and the Sounds of Barra and Harris services, and mainland ferry services to Orkney and Shetland. CNAs for the Small Isles, Skye, Raasay and the mainland connections to the Outer Hebrides are scheduled to commence shortly.

The CNAs will establish communities’ transport connectivity needs, including those of the island supply chain, identify transport dependencies and propose options to address any under or over provision of existing services.