Government cash is set to benefit people living and working in the Argyll and Bute Council area.
Funding secured by the council will help to develop plans for new houses on Mull, and a community care hub on Tiree.
The money has been provided by the Scottish Government’s Islands Programme.
Argyll and Bute Council has 24 inhabited islands, with Mull being the largest.
The project will provide the infrastructure for worker accommodation in Tobermory. The local authority was awarded £700,000 to develop the scheme.
Lack of accommodation
A council spokeswoman said: “The lack of accommodation on the island for workers is a local strain on the economy and existing housing stock.
“The Islands Programme funding will enable phase one of the ambitious project to start by delivering essential infrastructure works to the site at Rockfield Road, Tobermory.
“Phase one works are likely to start in the summer.”
It is understood that work will start on phase two of the project in 2024. Phase two will be funded by Argyll and Bute’s Rural Growth Deal and will deliver the worker accommodation.
On Tiree, a community care hub has been awarded £450,00.
The spokeswoman continued: “Funding on Tiree will help deliver a new vision and care service model to better meet the care needs of the island community by improving their lives and supporting plans to grow its population.
“Argyll and Bute HSCP will add to existing investment on the island by modernising and reconfiguring the Tigh a Rudha care home into a flexible community care hub to help support older adults.
“The new community care hub will provide onsite key worker accommodation, and intermediate, end of life and respite care facilities.”
Key priorities
Councillor Robin Currie, leader of Argyll and Bute Council said: “Working with our island communities, we know that housing and access to health and social care are key priorities for many island residents.
“The Islands Programme funding is a welcome boost to addressing the shortage of accommodation for workers, which has a huge impact on island businesses and the wider economy.
He continued: “Funding also enables residents to stay on the island and have access to urgent healthcare with staff available on site.
“The funding in addition to ongoing investment by the council and partners will make a huge difference to island life. ”
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