1. What are the aims, objectives and impacts of the Fund?
The Islands Business Resilience Fund (IBRF) was launched in July 2025 in response to previous disruption to ferry services as a result of a combination of constrained vessel capacity, breakdowns, vessel repairs and delays in replacement vessels. These issues have led to an increase in cancellations over the past three years.
The majority of Scotland’s islands rely upon ferries for access, but not all have experienced the same level of disruption.
The objective of the IBRF is to provide targeted financial support to businesses on islands that have been most disproportionately impacted by ongoing ferry service disruptions. It aims to support resilience, by way of a one-off financial award, to those businesses on the most affected islands to help them maintain operations.
The targeted nature of the IBRF meant that not all islands were eligible for funding. This reflected an evidence-based assessment of the varying levels of disruption experienced across different ferry routes and the way those ferry routes serve islands, with funding prioritised for islands where the cumulative impact on businesses has been most severe and sustained.
Following the conclusion of a first round of funding, this Island Communities Impact Assessment (ICIA) has been reviewed to support considerations for a second cohort of eligible islands recognising that, whilst the first round was targeted at those in most severe need of support, disruption has also affected other islands.
To ensure effective use of the limited funding available, work will continue to be carried out in collaboration with Highland and Islands Enterprise (HIE), who delivered round one and have expertise in supporting island businesses and delivering funding across island communities. HIE’s input has informed the development of the IBRF to ensure it is targeted in the most impactful way to reach those most in need with the funding available.