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£4.4m Resilience Fund Announced to Support Island Businesses

Additional support for island communities facing travel disruption

Our Lady of the Isles sculpture South Uist

In a significant move to bolster the economy of Scotland’s islands, MSP for Na h-Eileanan an Iar, Alasdair Allan, has welcomed the announcement of a resilience fund aimed at supporting island businesses.

This initiative comes as a response to the challenges posed by travel disruptions and other local issues.

The establishment of the fund addresses a key demand from the South Uist Business Impact Group, which has been actively advocating for measures to assist businesses facing ongoing challenges in the Western Isles. The fund, with an initial allocation of £4.4 million, will target areas and sectors experiencing the most acute need.

Details of the fund’s operation were discussed at a special meeting in Cnoc Soilleir, South Uist, last week, convened by the South Uist Business Impact Group. The meeting was attended by local MSP Alasdair Allan, alongside Transport Secretary Fiona Hyslop, who is engaging with local communities this week; Torcuil Crichton MP; representatives from Comhairle nan Eilean Siar; and members of the local community.

Alasdair Allan expressed his support for the initiative, stating,

“This additional support for our islands is a crucial step forward, particularly as local businesses and residents in Uist endure another challenging period. The disruption caused by major vessels being out of service has highlighted the need for greater network resilience until new vessels are operational.”

He also emphasized the Scottish Government’s ongoing commitment to the islands’ economy, noting that the resilience fund complements existing measures such as 100% rates relief for island hospitality businesses and the Islands Cost Crisis Emergency Fund, which has been in place since 2022.

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