£4.4m targeted support for businesses

A funding package developed to support island businesses affected by ferry disruption is now ready to accept applications.

Businesses from eligible sectors on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran can apply.

Eligible sectors include those that rely on tourism and those that are engaged in the manufacture or movement of perishable goods, such as seafood.

£4.4 million has been allocated to the Islands Business Resilience Fund (IBRF) which was established to help address issues, such as travel disruption, that can have a disproportionate impact on people and businesses living, and operating on Scotland’s islands.

Highlands and Islands Enterprise (HIE) will manage the IBRF on behalf of the Scottish Government. Applications will be accepted from 2 July until 12 noon 1 September 2025 with decisions and payments expected by 31 October 2025.

Funding awards will be based on demand and the scale size of organisations that apply for support but awards are expected to range between £3,000 and £35,000

Islands Secretary Mairi Gougeon said:

“We know that Scotland’s island communities face distinct challenges, not least in terms of their economic and social resilience. People and businesses require ferry services running reliably and frequently to support their livelihoods.

“We worked with Highlands and Islands Enterprise to refine the eligibility criteria and identify how this money can make a real difference to the businesses who need it most.

“Reliable and regular ferry services are key to this connectivity for people and businesses and we know that the current situation of delays and ongoing maintenance to some vessels has created real difficulties for some. We are determined to do everything we can to support islands, their local businesses and employers through these challenging times.”

Rachel Hunter, HIE’s director of enterprise and community support, said:

“Island businesses and social enterprises make an important contribution to local economies and provide vital rural employment that helps sustain many communities. Those operating in tourism and production or movement of perishable foods are particularly vulnerable to disruption such as we’ve seen in recent years.

“This fund is about strengthening the resilience of those organisations operating in the sectors and islands most affected. Our focus will be assessing applications promptly so that funding can be awarded as soon as possible after the closing date.”

Background

The application form and guidance will be available on the Highlands and Islands Enterprise website from 12 noon on 2 July.

Highlands and Islands Enterprise carried out detailed analysis of information and statistics provided by Transport Scotland and CalMac relating to ferry disruption.

The islands of South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay and Arran were chosen as eligible for the Islands Business Resilience Fund as they each had more than 15% ferry disruption over the last three seasons. The average cancellations of ferry services across the Calmac network is during that time has been around 7%.