Committee publication · Correspondence · 14 January 2026 · HC 1460

Correspondence from Fiona Hyslop MSP, Cabinet Secretary for Transport regarding fixed links inquiry, dated 19 December 2025

From: Scottish Affairs Committee

Inquiry: Connectivity in Scotland: Fixed links

Summary

Fiona Hyslop MSP, Cabinet Secretary for Transport, responds to the Scottish Affairs Committee's November 2025 call for evidence on fixed links and island transport infrastructure. The Scottish Government reports substantial ferry funding increases (6.9% for Shetland, 31.4% for Orkney in 2025-26), £10 million grants to both councils, and progress on electric ferry pilots. She outlines the government's strategic framework via the National Transport Strategy 2, Islands Connectivity Plan, and National Islands Plan, committing to detailed appraisals for three west-coast fixed link projects while framing responsibility for replacement infrastructure primarily with local authorities.

Key findings

  • Scottish Government provided 6.9% revenue increase to Shetland and 31.4% to Orkney for ferries in 2025-26, plus £10 million one-off grants to each council for island connectivity priorities.
  • Orkney received £15 million from Conservative Government's Zero Emission Vessels Infrastructure Fund; first electric ferry (12-passenger capacity) entered water 20 May 2025; second vessel (50-passenger) due end of 2026.
  • Shetland awarded £27 million from Levelling Up Fund for Fair Isle vessel and port infrastructure; costs have risen to £49 million due to geographical complexity and civil engineering, with ferry alone estimated at £12 million; council intends to use borrowing powers for the gap.
  • Scottish Government committed to detailed appraisals for three west-coast fixed link projects: Sound of Harris, Sound of Barra, and Mull–Scottish Mainland connection, guided by island communities' priorities.
  • Strategic framework encompasses National Transport Strategy 2 (2020-2040), Strategic Transport Projects Review 2 (2022-2042), and Islands Connectivity Plan; fixed links considered via STPR2 Recommendation 41 and National Islands Plan.

Tone

Procedural

Topics

transport-infrastructureisland-connectivitypublic-financeferries

Key actors

Fiona Hyslop MSP, Patricia Ferguson MP, Scottish Government, Shetland Islands Council, Orkney Islands Council, Scottish Affairs Committee

Notable line

The Scottish Government fully recognises the benefits that a fixed link can bring to island and rural communities.

Key Quotes

The Scottish Government fully recognises the benefits that a fixed link can bring to island and rural communities.
Fiona Hyslop MSP · Opening statement on government policy toward island transport
In 2025-26, Shetland received a 6.9% and Orkney 31.4% increase in revenue funding for ferries.
Fiona Hyslop MSP · Detailing recent ferry funding allocation
Orkney Islands Council has received the 1st vessel which entered the water on 20 May 2025 and can carry up to 12 passengers.
Fiona Hyslop MSP · Reporting progress on electric ferry pilot programme
Through the National Islands Plan, we have committed to working with local authorities to explore financing models and promote investment opportunities in fixed links projects within their areas.
Fiona Hyslop MSP · Outlining government commitment to fixed link development support
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Source · parliament.uk record ↗