Ferry funding flexibility welcomed by OIC

Orkney Islands Council has today (28 January) welcomed the news that the Scottish Government plans to offer additional flexibility to Orkney Islands Council in the way it receives its ferry funding.  

Council Leader Heather Woodbridge has described the move by the Scottish Government and the ferry funding settlement for 2025/26 as ‘the most progress we’ve ever made on our ferries agenda’. 

Since December 2022, Orkney Islands Council has been working collaboratively with the Scottish Government on plans for the replacement of Orkney’s ageing internal ferry fleet through the Ferries Taskforce, originally set up by First Minister John Swinney and now chaired by Shona Robison.  

In December, the Scottish Government announced as part of their budget that they were allocating £20.8m revenue funding and providing £10m of capital finding to Orkney Islands Council for ferries and island connectivity. 

Following negotiations between the Scottish Government and the Council, the Government has now agreed to provide that additional funding as revenue rather than capital. The new funding will bring the yearly funding of Orkney’s internal ferry fleet up to £28.8m - an increase of £13m from last year’s allocation – and £2m of capital funding.   

This represents a significant uplift in ferries funding – and provides extra flexibility for the Council in how that money will be used.  

Council Leader Heather Woodbridge said: “This is really good news that we have received from the Scottish Government today and the most progress we have ever made on our ferry agenda.  

“The flexibility in funding being provided next year by the Scottish Government offers us many more options not only in how the money is spent, but also in terms of the timeframe in which we can spend that funding 

“This truly reflects the success of the meetings of the Ferries Taskforce and demonstrates the commitment from Scottish Government towards supporting us through our plans to replace Orkney’s internal ferry fleet and improve isles connectivity. The budget allocation confirms all the funding that is required for the business case, for the Zevi pilot and is allowing us to now actively look at options for a third aircraft serving the North Isles.”