SHETLAND Islands Council (SIC) says it will make “urgent representation” to the UK Government after being told it will receive no local growth funding over the next three years.
No part of the Highlands and Islands has been allocated any cash from the local growth fund for the next three years.
The fund was introduced as the successor to the UK Shared Prosperity Fund, and created following the UK’s departure from the EU.
It was designed to help address the loss of European funding for local projects and services in the country’s most economically challenged peripheral areas.
SIC political leader Emma Macdonald is set to write immediately to Scottish secretary Douglas Alexander, urging the UK Government to reconsider the decision and the impact the loss of funding will have on Shetland.
Colleagues in Orkney and the Western Isles are also set to write to the government.
The five regions which are set to share the £140 million over the next three years are Glasgow City, Edinburgh and South East, Tay Cities, Ayrshire and the Forth Valley region.
“It’s essential that we receive continued support from the UK government and that at the very least there is a transitional period, rather than a sharp stop to this funding, at the end of March,” Macdonald said.
SIC political leader Emma Macdonald. Photo: Shetland News
“Since 2022, nearly £2.5 million in funding has helped us deliver essential services in our local community, focusing on the most vulnerable individuals to reduce inequality and disadvantage.
“This has included helping people into employment, expanding adult learning opportunities, reskilling and upskilling the local workforce to address skills shortages, and sustaining vital rural retail services.
“All regions in Scotland should be able to benefit from the local growth fund to help contribute to and drive economic growth.”
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Macdonald said it appeared that the UK Government had not taken into account “the high cost of living faced by islanders”.
“We have repeatedly highlighted that our cost of living can be around 30 per cent higher than in other areas, but once again this appears to have been left out of the equation,” she said.
“We are extremely disappointed to see that, once again, post-Brexit economic policy will disadvantage remote and rural areas which were previously supported under EU policy.”
Glasgow City will receive £60.9m across the next three years, while Edinburgh and South East will get £37.8m.
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