A new £4.4 million fund has been launched by the Scottish Government to support businesses on eight Scottish islands severely affected by ongoing ferry disruption. The Islands Business Resilience Fund (IBRF) is now open to applications from eligible businesses on South Uist, Colonsay, North Uist, Eriskay, Benbecula, Berneray, Grimsay, and Arran.
The fund targets sectors most vulnerable to ferry delays, including tourism and the manufacture or movement of perishable goods such as seafood. Grants are expected to range from £3,000 to £35,000, with awards based on demand and the size of the applying business. Highlands and Islands Enterprise (HIE) will manage the fund, accepting applications from July 2 until noon on September 1, with decisions and payments expected by October 31.
Government and Agency Response
Islands Secretary Mairi Gougeon highlighted the unique challenges faced by island communities, stating:
“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, added:
“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.”
Eligibility and Criticism
The eight islands were selected because each experienced more than 15% ferry disruption over the last three seasons, compared to an average of 7% across the CalMac network. However, the decision to limit eligibility has sparked criticism from other island groups.
A spokesperson for the Mull and Iona Ferry Committee, representing excluded islands, said:
“The ferry shambles is about more than just the number of sailings cancelled – it is about the fundamental undermining of Hebridean business and society, by this never-ending crisis of capacity and confidence. The damage done to our tourism sector will last long after the ferries are fixed. The criteria that the minister has come up with are not just blunt and crude, they are discriminatory. It seems to reflect an ignorance of how damage is being inflicted on island communities.”
The application form and guidance will be available on the Highlands and Islands Enterprise website from noon on July 2
The fund is open to businesses in the eligible sectors and islands until September 1, with prompt assessment and payments expected by October 31.
