Innovative pilot fund to boost workforce growth across Highlands and Islands

Issued by Skills Development Scotland 

Anchored by £2 million of seed investment from Skills Development Scotland (SDS), the Workforce North Co-Investment Fund aims to unlock wider public and private sector investment in skills, training and workforce development across the region. 

The initiative will support investment in the people, skills and workforce solutions needed to respond to immediate labour challenges and future growth opportunities through employer-led activity that helps businesses recruit, retain and develop the people they need.

The fund has focus on apprenticeships, skills development, workforce pipelines and practical responses to shared workforce challenges.

The fund forms part of Workforce North, a regional partnership that brings together employers, education providers and public sector organisations including Highlands and Islands Enterprise (HIE). It aims to ensure the Highlands and Islands has the skilled workforce needed to maximise opportunities arising from major investment in sectors such as renewable energy, construction and infrastructure.

Director of Strategy and Regional Economy at HIE Martin Johnston said: “The Highlands and Islands are entering a period of significant opportunity, but employers need the right skills and workforce capacity in place to benefit from that growth. The Workforce North Co-Investment Fund is an important pilot that will help businesses take practical action on recruitment, retention and skills development, while supporting collaborative solutions that respond to the specific needs of the region.” 

Minister for Business and Fair Work, Tom Arthur, said: “I welcome the launch of this pilot fund, which will support employers across the Highlands and Islands to respond to current workforce pressures, strengthen apprenticeship and skills pathways, and prepare for the opportunities being created by major regional investment.” 

Chair of SDS, Frank Mitchell said: “Workforce North’s shared mission is to ensure the Highlands and Islands region has the workforce it needs to realise the benefits of a generational investment over the next decade.

“This fund is a tangible example of how Workforce North is bringing public and private sector partners to address strategic workforce issues in the region, driving sustainable economic growth.”

With major investment expected across the Highlands and Islands in areas including renewable energy, infrastructure, construction and related sectors, the fund is designed to help employers build the workforce capacity needed to address current skills shortages and prepare for future growth. It will initially focus on workforce needs linked to key regional growth areas, including green energy, construction, digital and STEM-related skills. 

The fund is open to applications from employers across the Workforce North geography which includes Shetland, Orkney, Eilean Siar, Highland, Moray, Argyll & Bute as well as the islands of North Ayrshire.

The fund was announced last year by former Deputy First Minister Kate Forbes and will be administered by Highland Council on behalf of the region.

The Highland Council, Convener Bill Lobban, said: “Today marks a significant collective commitment to developing the workforce our region needs for the future. The opening of applications to the Workforce North Co-Investment Fund demonstrates how the public and private sectors are working together to ensure we have the skills and talent required to deliver our ambitions for housing, infrastructure, energy and digital innovation, and to realise more than £100 billion of planned investment across the Highlands and Islands over the next 15 years.

“By developing local talent and creating meaningful career opportunities, we can help tackle depopulation, grow and retain our workforce, strengthen our communities and support a thriving Highland economy.”

Comhairle nan Eilean Siar’s Chair of Sustainable Development Committee, Councillor Donald Crichton, said: “With significant investment forecast for the Outer Hebrides over the next decade, it is vital that employers and the workforce are ready to benefit. The Workforce North Co-Investment Fund is very welcome, and we look forward to working with SDS and partners to support impact across the Highlands and Islands.”

Employers can apply through the first funding round from 1 September to 30 October 2026, with full guidance available on the Workforce North Info Hub.