National Islands Plan: draft

Our Vision

Our Key Objective: Population Retention and Attraction

Population retention and attraction is the overarching objective of this new National Islands Plan.

This statement of intent received strong endorsement from communities, local authorities and public agencies during consultation. It communicates a clear vision, which the actions and investments in this Plan collectively support. By putting population levels centre-stage, we underscore the Scottish Government’s determination to sustain the long-term resilience of all our islands.

The analysis provided in Info Box 1 summarises the demographic pressures facing Scotland’s islands. Beneath the statistics lie stories that numbers cannot fully capture. On smaller islands in particular, people often undertake several community roles. Losing just one person – let alone a whole family – can therefore have significant implications for local services and community resilience.

This Plan is for all who live on, or who may choose to move to, Scotland’s islands. It recognises that sustaining vibrant and successful communities depends on contributions from all generations. Older residents play a particularly important role – often on a voluntary basis – in promoting community development, delivering local services, and ensuring their island’s voice is heard.

Reflecting consultation feedback, this Plan places additional emphasis on young people and the economically active population, whose presence is critical to achieving more balanced demographic profiles and securing the long-term sustainability of island economies and services. There are encouraging trends to build on. The Scottish Islands Survey 2023 found that 79% of young participants (aged 18-35) intended to remain on their island – up from 71% in 2020. In addition, 41% of respondents had moved to their island for the first time, often citing quality of life and economic opportunity as key reasons.

This Plan does not introduce national targets for population growth on our islands, nor does it set fixed milestones for any specific areas. Each island community should determine its own pace of change. Central to our approach is a commitment to ensuring that islanders can access the services and opportunities they need at every stage of life, making it easier for those who wish to stay. At the same time, we aim to make Scotland’s islands even more appealing places to live, work and study for those considering a move or planning to return.

The Addressing Depopulation Action Plan (ADAP, 2024) sets out the Scottish Government’s strategic approach to supporting areas affected by population decline. It commits to working with regional and local partners to deliver sustainable, locally led solutions – reflecting the varied demographic needs of communities. Since the publication of the ADAP, a programme of interventions has been introduced across a range of island communities experiencing population decline. Lessons from projects delivered elsewhere in Scotland are also being harnessed and, where relevant, shared with island communities to inform further local initiatives. This National Islands Plan directs further efforts towards achieving the ambitions set out in the ADAP and expressed by island communities.

Demographic Trends on Scotland’s Islands

The overall population of Scotland’s islands has remained fairly stable over the last 20 years. Census 2022 data show that the number of island residents stood at just under 103,000 – around 2% of Scotland’s population. This is slightly below 2011 (103,700) but above 2001 (99,700).

Underneath this relative stability lies a mixed picture and significant variation between and within island areas. Compared with 2011, Na h-Eileanan Siar recorded the largest population decline of all Scottish council areas (-5.5%), while Orkney recorded a 3% increase. In Orkney, population growth was concentrated on the mainland and connected islands, while the Outer Isles lost 5.2% of their residents^[2]. Even within the latter, however, differences were marked – for example, the population of Papa Westray grew between 2001 and 2022. These contrasts underline the need for localised, flexible approaches – a key principle of this Plan.

Island populations are also ageing. In 2022, 26% of island residents were aged 65 or over, up from 21% in 2011 and significantly above mainland Scotland (20%). About 28% of residents aged 16+ are retired, compared with 23% nationally.

The proportion of island residents under 16 has continued to fall – from 20% in 2001 and 17% in 2011 to 15% in 2022. Pupil numbers have also declined in all island authorities between 2001 and 2024, with both Argyll and Bute and Na h-Eileanan Siar recording a drop of just under 25%^[3].

Looking ahead, projections show continued ageing and loss of working-age population, anticipated to be greater on islands than many other parts of Scotland. All island local authorities are expected to either see population decline or growth below the Scottish average by mid-2032^[4], posing risks for local economies and public services.

Fertility rates in island local authorities are slightly higher than Scotland’s average^[5], but the proportion of residents under 15 is still projected to fall between mid-2022 and mid-2032 (from -13% in Orkney to -21% in Na h-Eileanan Siar). Over the same period, the proportion of residents of pensionable age is set to increase in all island authorities.

With deaths expected to outnumber births in all island local authorities, inward migration will be crucial to sustaining populations. All island councils are projected to see more people moving in than leaving in the period up to 2032, largely driven by migration from elsewhere in the UK.

Our Approach: Community Wealth Building

Community Wealth Building (CWB) will be the key approach guiding the implementation of this National Islands Plan.

During our consultation, communities emphasised the need to strengthen local supply chains, promote fair work, and ensure public investment delivers direct benefits for islanders. These priorities align closely with the five pillars of CWB embedded in the government’s economic strategy^[6].

Our vision for thriving islands is one where wealth and wellbeing are locally rooted, supply chains are shortened, and economic opportunities and benefits are maximised locally. By increasing the circulation of wealth among island communities, inequalities can be tackled more effectively, and people are offered stronger, local routes out of poverty.

Scottish islands already demonstrate a strong culture of community action and locally led sustainable development. They host a high density of social enterprises – with Na h-Eileanan Siar, Shetland and Orkney boasting the highest numbers per capita in Scotland^[7] – and around a quarter of all community-owned assets nationwide are located on islands. Na h-Eileanan Siar alone accounts for 72% of Scotland’s community-owned land[8]. The buyouts of Eigg, Gigha and Ulva stand as emblematic examples of this success. Ownership of local assets – whether businesses, land or property – can boost island economies and ensure that profits are reinvested in ways that directly benefit communities.

The Scottish Government introduced the Community Wealth Building (Scotland) Bill in March 2025. Subject to parliamentary approval, the Bill will place duties on Scottish Ministers, local authorities and relevant public bodies to embed CWB as a core element of economic development. Na h-Eileanan Siar and North Ayrshire – with a focus on Arran and Cumbrae – were among the local authority areas whose expertise contributed to the development of the Bill.

Working with local government and public agencies, we will anchor the delivery of this Plan in CWB principles to ensure that decisions, assets and benefits are firmly in the hands of islanders.

Case Study – Lochranza Country Inn

In 2022, the North Arran Community Benefit Society (NACBS) secured a grant award of just under £484,000 from the Scottish Land Fund to acquire the former Lochranza Hotel, which had ceased operations following the COVID-19 pandemic. Through a combination of further private and public funding, NACBS completed the refurbishment of the building, bringing a fully redeveloped asset into the hands of local people.

The Lochranza Country Inn opened its doors in May 2023. It provides hospitality services for visitors and a community space to tackle isolation, supporting local employment and the island supply chain. Surplus profits are reinvested into the Inn or used as contributions to projects benefitting the local community.

How this Plan is Structured

This refreshed National Islands Plan is structured around seven Strategic Objectives that reflect both the evidence we gathered and the priorities that communities told us matter most to them.

Each chapter follows a consistent structure:

• an overview of the issue and why it matters for islands;
• key evidence, including both positive trends and persistent challenges;
• a summary of current Scottish Government activity; and
• commitments being taken forward through this Plan. All commitments can be found in the Implementation Route Map outlining timescales and delivery partners.

Table 2 – Strategic Objectives

Population Retention and Attraction

To support people to live, work and thrive on Scotland’s islands by facilitating locally led solutions for population retention and attraction.

Connectivity

To deliver reliable, affordable and integrated transport and digital connectivity, enabling social and economic links to, from and between islands.

Housing

To increase the availability of affordable, suitable homes on islands, supporting economic growth, year-round communities, essential services and long-term population sustainability.

Health and Social Care

To improve access to tailored health and care on islands by strengthening local services, embedding digital care where appropriate, and giving island communities more influence over decisions.

Economy, Education and Skills

To grow sustainable island economies through targeted investment, support for local businesses, and education and training opportunities that enable islanders to learn and work locally.

Climate, Nature and Energy

To accelerate the transition to net zero on islands by supporting renewable and nature-based solutions, ensuring local ownership and securing fair returns for island communities while building long-term resilience.

Poverty and Social Justice

To reduce poverty and inequality on islands by addressing higher living costs, tackling fuel challenges, and improving access to services and opportunities.

Empowered Communities and Culture

To strengthen island communities by investing in local leadership, building community capacity, and supporting island cultures, languages and heritage.