Island businesses affected by ferry disruption are to be granted financial support through the Scottish Government’s £10 million Islands Resilience Fund.

 

The announcement came ahead of First Minister John Swinney’s three-day visit to the Western Isles.

 

He said the cash injection will help island businesses “thrive” and “cope with challenging circumstances”.

 

CalMac’s west coast ferry network was badly disrupted by breakdowns earlier this year affecting 96 per cent of island businesses, according to a survey by Visit Outer Hebrides.

 

Following the first phase of support, a further £3 million in 2026-27 will be provided to “help mitigate the disproportionate impact” faced by people and businesses living and operating in Scotland’s islands.

 

It builds on the £4.4 million Islands Business Resilience Fund delivered in 2025-26. 

 

The First Minister is set to visit Barra, South Uist, Grimsay, Scalpay, Lewis and Harris from August 10-12 for engagements regarding housing, energy and community wellbeing.

 

Mr Swinney said: “Scotland’s islands are home to a wealth of talent, innovation and entrepreneurialism, but too often island businesses are held back by circumstances outside their control.

 

“The £10 million Islands Resilience Fund was one of our commitments for the first 100 days of government. This fund will support businesses to cope with challenging circumstances, helping them to thrive and ensuring that Scotland’s islands remain attractive places to set up businesses and livelihoods.

 

“Crucially, this phase of investment will ensure support can be put in place immediately while we establish the foundations for longer-term investment over the course of this Parliament.

 

“Over the next few days I will meet a wide range of organisations in the Western Isles, where I look forward to discussing more about how the Scottish Government can support island communities to build the resilience needed for a bright future.”

 

Islands eligible for the Islands Resilience Fund include Arran, Barra, Benbecula, Berneray, Canna (including Sanday), Coll, Colonsay, Eigg, Eriskay, Gometra, Grimsay, Iona, Islay, Jura, Harris, Muck, Mull, North Uist, Rum, South Uist, Tiree, Ulva, Vatersay and Scalpay.

 

The fund will be administrated by Highlands and Islands Enterprise and will open for applications at midday on Monday, August 17. 

 

Further phases of the wider £10 million commitment will be delivered over the lifetime of this parliament.

 

Rachel Hunter, Director of Enterprise and Community Support, Highlands and Islands Enterprise (HIE) said: “The Islands Resilience Fund will ensure that support reaches more island communities and sectors experiencing the effects of ferry disruption. By opening eligibility, we can provide practical assistance to businesses and community organisations that have experiences additional costs and challenges beyond their control.

“Working on behalf of the Scottish Government, HIE’s focus will be on delivering the fund and ensuring support reaches those who need it most. Organisations that received support through previous rounds of the IBRF will be contacted directly by HIE, rather than needing to submit an application.

“This investment will help strengthen resilience across our island communities, supporting organisations to adapt, recover and continue contributing to vibrant and sustainable local economies.”