Islands growth deal worth £100m signed

Shetland's ultra deep water port at Dales Voe is expected to benefit from the deal

A £100m deal aimed at promoting economic prosperity in Orkney, Shetland and the Western Isles has been signed.

The Islands Growth Deal was signed in Orkney by UK and Scottish government ministers and local council leaders.

It is expected to lead to up to 1,300 jobs and £393m of investment over 10 years.

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

The deal was developed by Comhairle nan Eilean Siar, Shetland Islands Council and Orkney Islands Council, along with a range of partners.

It is being jointly funded by the UK and Scottish governments.

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

Over 10 years, the Islands Growth Deal will invest in 16 projects and programmes built around the themes of "low carbon, supporting growth and future industries and thriving sustainable communities".

The first year of the programme is expected to see investment in the University of the Highlands and Island's campuses in Shetland and the Outer Hebrides as well as the Islands Centre for Net Zero, which will be based at the Orkney Research and Innovation Campus in Stromness.

Other investments include Shetland's ultra deep water port at Dales Voe and the Orkney World Heritage Gateway project.

Scotland Office minister Malcolm Offord said: "This will not just boost local economies and create jobs, but also empower communities to get the most out of the many assets and attributes that make the islands such unique and special places to live."

'Game-changing initiative'

The Scottish government's business minister Ivan McKee said the growth deal would be "a game-changing initiative for our islands".

He added: "This £50m Scottish government investment will support the transition to renewable energy sources - including equipping the workforce with new skills - and trial emissions reduction initiatives on islands.

"It will drive innovation in key space, food and drink and creative industries sectors; help develop significant tourism and cultural attractions and expand education provision."

Orkney Islands Council leader James Stockan said it marked "another significant milestone in our collaborative journey and future vision for our three island areas".

Comhairle nan Eilean Siar leader Paul Steele said the deal would capitalise on the islands' "natural assets and most importantly, our people", while Shetland Islands Council leader Emma Macdonald stated it would help "unlock more economic success for all our islands".