Islands to receive £100m in government investment

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The Western Isles, Orkney and Shetland are to receive £100m in government investment.

The Scottish and UK governments are to each to provide up to £50m in investment as part of the Islands Growth Deal.

Tourism, infrastructure, innovation, energy and skills will be targeted for funding.

There are already regional deals, external for areas including Ayrshire, Moray and the south of Scotland.

Western Isles, Orkney and Shetland local authorities have been campaigning since 2013 for greater support for their communities.

In response, the Scottish government produced the Islands Bill and National Islands Plan.

'Unprecedented challenges'

Transport, Infrastructure and Connectivity Secretary Michael Matheson said money from the growth deal would be used to improve the quality of life in island communities over the next 10 years.

He said: "This significant investment will support islanders' ambitions to create world-class visitor destinations, lead the way to a low carbon future, support growth and future industries."

Mr Matheson said it would also help communities to attract and retain younger people.

In the Western Isles, the local authority has long been trying find ways to encourage young islanders to stay rather than move away to live and work.

Mr Matheson added: "It is important that all deals take account of the unprecedented economic challenges created by coronavirus and we are working with partners, to understand how best to move forward and respond to current circumstances."

'Unprecedented support'

Scottish Secretary Alister Jack said: "The City Region and Growth Deals will be crucial to our economic recovery from coronavirus.

"(This) announcement means that every corner of Scotland will benefit from these and takes the UK government's investment in growth deals across Scotland to more than £1.5bn.

"These deals are just part of the unprecedented support that the UK government is providing to people and businesses in Scotland during this time.

Mr Jack added: "We have supported 900,000 jobs in Scotland with our furlough and self-employed schemes, including 11,600 across the islands. "

The funding was announced as Prime Minister Boris Johnson prepared to make a series of visits in Scotland.