National Islands Plan Annual Report 2025
The Islands (Scotland) Act 2018 requires that a report is presented to Parliament each year setting out the progress made towards delivery of the National Islands Plan. This report sets out progress made during the 2025 reporting year.
Digital Connectivity
Strategic Objective 6 – Improve digital connectivity
Commitment 6.1 Deliver a step change in the quality of digital connectivity across the islands.
Throughout 2025-26, the Scottish Government has continued to support the delivery of digital infrastructure through the Reaching 100% (R100) programme while also procuring new contracts to develop further digital infrastructure through Project Gigabit in Scotland.
Over 6,300 faster broadband connections were installed on Scotland’s islands by the end of October 2025, following an investment of over £600 million in Reaching 100% (R100) contracts. All these connections are full fibre and gigabit capable providing future-proofed, resilient connectivity.
The Scottish Government continues to play a key role in delivering the UK Government’s Project Gigabit programme in Scotland. In December 2024, a procurement to deliver connections to premises in Orkney and Shetland was launched, the outcome of which is expected in Spring 2026. As part of Project Gigabit, a nationwide contract was awarded to Openreach by the UK Government which includes premises in parts of Scotland, including island areas. The Scottish Government is jointly managing delivery of this contract in Scotland.
Satellite-based internet provision
A trial providing advanced satellite-based internet services on three Orkney ferries has proven successful in benefiting both passengers and ferry operations. This work was funded by the Scottish Government and involved several partners including the Scottish Futures Trust, HIE, Orkney Ferries and Orkney-based CloudNet IT Solutions. Consequently, Orkney Ferries has committed to expanding this service across all its routes, providing a significant improvement in digital connectivity for commuters and travellers throughout Orkney.
Commitment 6.2 Mandate the delivery of gigabit-capable connectivity to selected island locations, through the R100 programme, with many other island communities to benefit once contracts are finalised.
By October 2025, over 6,300 faster broadband connections were installed in island premises through R100 contracts, with a further 419 connections delivered through the R100 Scottish Broadband Voucher Scheme.
During 2025, connections were delivered on Mull, Tiree and Luing in Argyll and Bute; Eday, Sanday, Stronsay and Westray in the Orkney Islands; Uyeasound, Baltasound, Symbister, Scalloway, West Sandwick and Bigton in Shetland; the Isle of Skye in the Highlands and Stornoway in Na h-Eileanan Siar.
Commitment 6.3 Call on the UK Government to prioritise early investment in Scotland’s islands as part of their plans for full fibre roll-out by 2025.
In December 2024, the Scottish Government launched a £40.7 million regional Project Gigabit procurement aimed at enhancing connectivity in Orkney and Shetland where more than 13,500 premises are eligible to be connected. The outcome of this procurement is expected in Spring 2026.
In May 2025, the UK Government signed a £157 million contract with Openreach to bring gigabit-capable broadband to up to 65,000 premises in central and northern parts of Scotland. The Scottish Government is co-managing delivery of this contract alongside Building Digital UK (BDUK).
Commitment 6.4 Call on Ofcom to address the issues faced by island communities when designing telecoms regulation and policy. We also committed to convene a meeting with Ofcom and island representatives to explore how regulatory levers (such as spectrum auctions) could improve both mobile and broadband coverage on the islands and ensure that the needs of islands are represented to the Department for Digital, Culture, Media and Sport (DCMS) in UK national policy development.
The Scottish Government continues to engage regularly with Ofcom and our local authority single points of contact for digital connectivity, including representatives of island local authorities. A telecoms roundtable with Ofcom held in June 2025 explored how governments could work with the industry and regulator to address remaining connectivity gaps in innovative ways, and how regulation and regulatory levers could support this work. The Scottish Government responded to Ofcom’s Telecoms Access Review in 2025 highlighting challenges experienced by island communities and asking that more is done to strengthen digital resilience across Scotland’s islands.
Commitment 6.5 Through the Scotland 5G Centre, we committed to building on the 5G RuralFirst trials currently taking place on Orkney, and working with partners including Ofcom, we committed to develop rural 5G use cases to address the rural digital divide using 5G technology.
Using previous investment from Scotland 5G Centre’s Wave 1 rural project and in partnership with the 5G New Thinking project from 2019-22, equipment was procured to build private 5G networks on Westray and Papa Westray, and on Flotta and Hoy working with on-island partners Cloudnet IT Services and Orkney Islands Council.
Seven 5G rural private network base stations were installed and provided connectivity to local trialists across communities. Since the conclusion of physical deployment activity in March 2022, the project team on Orkney has continued to maintain and operate components of the 5G networks and has carried out additional engineering to enable further innovative projects.
This work paved the way for the project lead, the University of Strathclyde, and local on-island partners to deploy a pilot at the Orkney International Island Games in the summer of 2025 demonstrating the viability of private pop-up 5G networks for broadcast use.
Commitment 6.6 Work with local resilience partnerships and telecoms providers to encourage them to focus on resilience of data links to and from the islands.
Highlands and Islands Enterprise – Cyber Resilience
HIE is planning a regional Rural Cyber Resilience Campaign from January to March 2026, to promote resources and support available through the CyberScotland Partnership and over CyberScotland week in February 2026.
Commitment 6.7 Develop a digital skills programme designed by island communities to meet their needs.
Connecting Scotland
Since August 2023, Connecting Scotland has provided grant funding of over £389,000 to support local digital inclusion projects, including device-lending libraries, social housing initiatives, and place-based schemes. While funded by the Scottish Government, these initiatives are delivered by local organisations – ensuring they are tailored to the needs of the communities being served.
Shetland Library received funding via the Connecting Scotland Lending Library Fund to provide additional support for people to use PCs in the library and loan tablets, increasing their service’s outreach and flexibility. A final report on the impact of these projects will be published in March 2026.
In addition, we launched two new funds in October 2025 to support digital inclusion work in Scotland, with over £1.4 million available. The Connecting Scotland Digital Inclusion Fund and a CivTech challenge combine UK Government and Scottish Government funding to support digital inclusion projects across Scotland, including in rural and island communities.
Highlands and Islands Enterprise
HIE is supporting businesses on their AI Readiness, via the AI Readiness Programme in partnership with Scottish Enterprise. Five island-based organisations participate in the programme, which includes hybrid events, and provides advice and mentoring over eight months.
HIE is a partner in the Scottish Government’s funded National AI Adoption Programme in collaboration with Scottish Enterprise, South of Scotland Enterprise and The Data Lab Innovation Centre.
Nine island-based businesses are accessing an AI Voucher of up to £1,500 to explore the use of AI in their organisations.
Commitment 6.8 Extend the availability of coding clubs and community-based digital inclusion programmes across the islands.
Highlands and Islands Enterprise (HIE)
HIE is supporting the digital economy on islands through their Digital and Technology Adoption (DaTA) Programme 2025-2030, which commenced in June 2025. Two island based businesses are accessing digital specialist advice and two are being awarded a digital capital grant for ambitious digital transformation projects. There are several projects in the pipeline.
Through the HIE Digital and Technology Adoption Capital Grant two islands projects were awarded capital grants for digital transformation projects. The European Marine Energy Centre (Orkney) has received £13,400 and Ocean Kinetics (Shetland) has received £63,772.
Contact
Email: info@islandsteam.scot