New £4.4m ferry disruption fund opens for eight islands
A £4.4 million Scottish Government fund aimed at supporting island businesses hardest hit by west-coast ferry disruption.
Run by Highlands and Islands Enterprise (HIE). Applications open July 2 and close midday September 1. Decisions and payments are expected by October 31.
Grants range from £3,000 to £35,000 depending on business size and demand.
✅ Who's eligible?
Businesses on these eight islands only: South Uist, North Uist, Eriskay, Benbecula, Berneray, Grimsay, Colonsay, and Arran.
Must be in tourism-related sectors or the manufacture or transport of perishable goods (e.g. seafood).
Islands were selected for having over 15% ferry service cancellations across three seasons — far above the 7% CalMac network average.
🚩 Why it's controversial
Exclusion of other hard-hit islands
The Mull & Iona Ferry Committee says Mull (and Iona), along with Coll, Tiree, Islay and others, have seen serious disruption — but are not included.
Mull lost 22% capacity since March due to MV Isle of Mull being sidelined — though this isn't counted under the scheme's eligibility criteria.
Questionable criteria
Critics call the 'over 15% cancellations' rule arbitrary and exclusionary, saying it ignores capacity loss and ongoing maintenance issues.
There's concern the fund doesn't align with the Islands (Scotland) Act, which aims to support all affected communities.
Financial shortfall
South Uist reports losses of £1 million over Easter–June 2024.
Mull has lost around 7,000 passengers and 10% car traffic by June 2025 — figures campaigners argue outstrip the current £4.4m total.
🧑🎤 Voices from the islands
'Why exclude islands that are really suffering? It's not just bizarre and unfair on the face of it, it's actually, I think, contrary to the islands act, I don't think it's correct in law.'— Joe Reade, Chair of the Mull and Iona Ferry Committee.
At least it's a gesture. It will benefit some people. It'll let them survive, because the hit has been really hard on people." —Mary Schmoller, member of the board of the South Uist community landowner, Stòras Uibhist
🛠️ What happens next?
Applications open July 2, 2025, closing September 1, administered by HIE.
Decisions and payouts expected by October 31.
Campaigners are calling for: Wider eligibility that includes islands like Mull, Coll, Tiree, Islay. Revised criteria that account for capacity loss, not just cancellations. More detail on eligibility and payment formulas is expected soon.
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