Transport / Fair Isle ferry funding commitment welcomed
NEARLY £27 million of funding pledged to Shetland Islands Council for a new Fair Isle ferry – plus harbour improvements – has been confirmed following the change in government at Westminster.
The news has been welcomed locally, with Shetland Islands Council leader Emma Macdonald saying she was “glad that the new Labour government recognises the importance” of the Fair Isle route.
The UK Government has confirmed the Levelling Up money for the Fair Isle project is secure, as well as a host of other Scottish projects including towns funding.
It comes after Labour took over from the Conservatives in the UK Government this summer, and a budget delivered in late October which sought to plug an apparent £22 billion hole in public finances.
Macdonald said: “I’m glad that the new Labour government recognises the importance of the Fair Isle route and the significance of this business case to the people in not just the community but also the wider importance of Fair Isle.
“The council are working on the full business case, which will be considered first by the council, and then the government will consider it and a final decision will be made.”
When the SIC was bidding for Levelling Up funding it was suggested the council’s contribution to the entire project could stand to be £2.8 million, making for an overall project estimate of around £30 million.
But the SIC said since then construction costs have risen “as a result of economic and geopolitical issues”, while there have also been pressures on the local construction workforce and supply chain, all contributing to the increased cost.
In January this year the project estimates stood at between £40 million to £45 million.
With a 2026 deadline attached to the UK Government funding, the SIC has also requested an extension to the project.
There is a hope that work on Fair Isle’s harbour could start in March next year, subject to councillors giving a full business case the final go-ahead.
The UK Government said following last week’s budget, Scottish secretary Ian Murray has written to all local authorities in Scotland to confirm their funding allocations for local growth projects.
The government said it will be investing nearly £1.4 billion in “dozens of important local growth projects across Scotland over the next 10 years”.
Murray added: “Growth is a key mission for this government and a top priority for the Scotland office.
“The chancellor delivered a budget that will herald an era of growth for Scotland, rebuild our public services and begin a decade of national renewal.”
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