The Islands Cost Crisis Emergency Fund aims to mitigate the unique challenges faced by islanders, including a colder climate, higher fuel and energy costs, and reduced consumer choice. The criteria have been extended to include struggling businesses.
The fund will be distributed by the six island local authorities, targeting people, communities and businesses who are struggling the most. Previous funded initiatives include food bank grants, Love Local food voucher cards and free school breakfasts.
Local Government Empowerment Minister Joe FitzPatrick said: “Island council leaders have seen the cost-of-living crisis become more entrenched in their communities. We have listened to island local authorities and are providing this £1 million of additional funding to help them target support where they have the most concerns.”
Councillor Maureen Chalmers, COSLA’s community wellbeing spokesperson, added: “The cost-of-living crisis continues to have a disproportionate impact on our island communities, with some areas facing costs up to 65 per cent higher than on the mainland."
The Islands Cost Crisis Emergency Fund was set up in December 2022. The extra £1million, to be distributed through the 2023/24 Local Government Revenue Grant, brings the fund's total support to £2.4 million.
Na h-Eileanan Siar, the Western Isles, will be the largest council beneficiary receiving £257,000, while Argyll and Bute gets £141,000, and Highland £105,000.
Na h-Eileanan an Iar's SNP MSP, Alasdair Allan, said: “Pressures from rising energy costs, fuel costs, food prices and house prices are being felt more acutely here than the mainland. £257,000 can be used by Comhairle nan Eilean Siar to target support at those who are most in need."
Jenni Minto, SNP MSP for Argyll and Bute, added: “The cost-of-living crisis has been taking its toll on households across Scotland – and particularly on those in our island communities, who have been grappling with higher energy and grocery bills while local tourism feels the squeeze.
"This funding will make sure that people living on islands in Argyll & Bute have access to the right support, where and when it’s needed."
The Scottish Government has also launched a public consultation to review the current priorities of the National Islands Plan, five years after it was first published, which island communities are being invited to respond to.
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