The Scottish Government has announced a ￡20 million investment to help Orkney and Shetland explore options for improving inter-island transport links, including ferries, flights, and the creation of a network of tunnels.

       The funding, revealed by Finance Secretary Shona Robison during the Budget statement, aims to enhance connectivity for island communities and support long-term economic and environmental sustainability.

       It will allow Orkney and Shetland councils to assess the feasibility of subsea tunnels, which have been successfully implemented in places like the Faroe Islands and Norway.

       Ms Robison highlighted that the decision on how to use the funds would be left to local communities, stating: "This one-off investment will enable them to sustain and improve inter-island connections, whether that means flights, ferries or – and I know members for the Northern Islands will be pleased to hear this – tunnels between islands.”

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       The announcement follows a visit by Scottish MPs to the Faroe Islands in November, where they examined the country's extensive tunnel network. The most recent addition, a 10.2-kilometre subsea tunnel linking Streymoy and Sandoy, was completed with a price tag of approximately ￡9.8million per kilometre.

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       Shetland Islands Council has already commissioned a team of transport consultants to assess long-term infrastructure improvements. Their October 2023 report identified several key potential tunnel routes, including:

       Advocates argue that tunnels will provide a more reliable and cost-effective alternative to ferries, particularly in harsh winter conditions. Additionally, fixed links could reduce carbon emissions by decreasing dependence on diesel-powered ferries, supporting Scotland’s climate targets.

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       The Faroe Islands have set a strong precedent for subsea tunnel development, with around 11% of its road network now underground. Reports suggest these tunnels have had a transformative impact, improving economic activity, accessibility, and community cohesion. Similar benefits could be expected in Shetland and Orkney if tunnels were built.

       Beyond inter-island travel, the Scottish Government is committing ￡2.6 billion to public transport improvements, including:

       While the ￡20 million funding boost is a significant step, constructing subsea tunnels would require additional major investment, planning, and public consultation.

       If successful, the move could revolutionise transport in Scotland’s Northern Isles, bringing economic and environmental benefits for future generations.