Childcare vital in regional growth, says HIE

Childcare plays a vital role in supporting economic growth, population retention and community wellbeing across the Highlands and Islands.

Published 30/09/2026 in HIE corporate

This is according to a blog published today (30 September) by the region’s economic and community development agency Highlands and Islands Enterprise (HIE).

Working with the Highlands and Islands Regional Economic Partnership (HIREP), HIE has helped gather evidence from more than 100 communities, while championing the economic importance of childcare across the region.

The blog, written by HIE’s head of housing, skills and population Morven Fancey, argues that childcare should be viewed as essential infrastructure for rural and island communities.

“Access to childcare is critical to workforce participation, business growth, population retention and community wellbeing”, she says. “It makes it easier for businesses to recruit, for entrepreneurs and parents to be more active in the workforce; and for communities to attract and retain families. This is essential for local economies, community and social resilience and long-term growth.”

The blog reflects on HIREP’s Childcare Evidence Report and discussions at a Scottish Government Childcare Roundtable held in Ullapool back in March.

The report found that in many areas limited childcare affects workforce participation, business recruitment and community sustainability. Employers report difficulties attracting and retaining staff where suitable childcare is unavailable.

This impact is amplified in smaller rural and island communities, where a lack of provision can influence whether families move to, stay or leave an area.

While these challenges are significant, Morven Fancey also highlights the determination of communities around the region to develop solutions.

“Communities are not waiting for solutions to arrive – they’re already designing them.

“From Barra and Uist to Tiree, Strontian, Sutherland, Skye and Shetland, communities are actively exploring new approaches that could strengthen childcare provision and improve outcomes for families.”

These approaches, she explains, include Rural Childcare Practitioner models, all-age childcare services, intergenerational approaches such as the Single Care Model and new ways of supporting childcare professionals.

“As Scotland’s economic and community development agency for the region, we’ll continue making the case for investment in childcare. At the same time, we’re working with communities to help them turn their ideas into action in finding local solutions.

“Childcare is much more than a service. It’s an investment in people, in communities and in the long-term success of the Highlands and Islands and the region’s contribution to Scotland’s economy. The commitment, creativity and determination already being shown here give every reason to be optimistic about what can be achieved together.”

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