The UK Government has suggested that its flagship “City Deal” scheme could be offered to Orkney, Shetland and the Western Isles to unlock major new investment.
Scottish Secretary Alistair Carmichael unveiled a 10-point plan yesterday to strengthen the political and economic powers available to the three councils.
Hailed as the first framework of its kind anywhere in the country, the move follows a long campaign by the local authorities on the islands.
The 11 page document includes a pledge to investigate offering the islands some of the same incentives given under the City Deal programme.
Glasgow became the first Scottish city to be granted the special status earlier this year, getting extra levers to boost growth, such as the ability to “earn back” tax from the Treasury, control transport budgets and plug skills gaps.
Glasgow expects it to help create up to 28,000 jobs over the next 20 years, and be worth £1.75billion a year.
Aberdeen City Council has also been lobbying the UK Government for a similar package.
The framework states: “Whilst recognising that any solution for the islands would need to be tailored for their particular circumstances, the UK Government and the islands councils agree to work together to explore whether the lessons learned through the City Deals process pioneered by the UK Government in England and, most recently, in Glasgow, could offer a framework to help address the unique economic and social needs of communities on the islands.”
Other measures include creating an “islands working group” supported by a dedicated official in the Scotland Office, the Scottish Secretary and island council chiefs agreeing to hold an annual summit, and new plans to establish an “islands oil and gas forum”.
Mr Carmichael, who is the Liberal Democrat MP for Orkney and Shetland, said: “Today’s announcement is a landmark for the relationship between the UK Government and our island communities in Scotland.
“It builds on a great deal of good work in the past and will strengthen the voice of our islands at the heart of government.”
Angus Campbell, leader of Western Isles Council, said: “It is to be welcomed that the UK Government has responded to the Our Islands Our Future campaign with this framework agreement and this opens up avenues for much work in the future.”
However, the Western Isles SNP MSP Alasdair Allan was underwhelmed, saying: “With the best will in the world, it is difficult to see what if anything the Scottish Secretary has offered the islands today.”