Committee publication · Correspondence · 8 July 2026 · HC 167
Correspondence from the Shetland Islands Council, regarding the Inter-Island Transport Connectivity Programme, dated 30 June 2026
Summary
Shetland Islands Council writes to the Scottish Affairs Committee following evidence given on 20 May, providing updated information on the Inter-Island Transport Connectivity Programme (IITCP). The Council has approved an Outline Business Case proposing a mix of subsea tunnels (fixed links) and enhanced ferry services across seven key inter-island routes. The programme addresses systemic challenges facing Shetland's ageing ferry fleet (average age 31.5 years, operating costs £25m annually) and seeks UK and Scottish Government support for financing this £hundreds-of-millions infrastructure initiative.
Key findings
- Shetland Islands Council approved the IITCP Outline Business Case on 30 June 2026, establishing a long-term strategy combining fixed links and enhanced ferries across seven inter-island routes (Bluemull Sound, Bressay, Whalsay, Yell as tunnels; Foula, Papa Stour, Skerries with ferry improvements).
- The Fixed Links Model Study (COWI) has established technical and financial feasibility of subsea tunnels in Shetland, with three international tunnel contractors and 17 financial organisations confirming projects are buildable and investable.
- Current ferry operating costs have risen sharply from £15m (2015/16) to £25m (2024/25), with fleet averaging 31.5 years old; Ferry Do Max modelling shows expanded ferry services would be operationally impractical and more costly than fixed link options.
- Three funding routes identified as deliverable: capital grant funding (Scottish/UK Government), SIC borrowing (Public Works Loan Board or National Wealth Fund), and private finance with revenue grants or tolls; implementation requires phased 30-year investment programme.
- Economic modelling projects fixed links could generate £30m–£60m in additional annual output (especially aquaculture), support SaxaVord Spaceport competitiveness, improve labour market access, and reverse demographic decline (historical precedent: Trondra population increased 8-fold post-bridge in 1971, Burra grew 50%).
Tone
ProceduralTopics
Key actors
Shetland Islands Council, Emma Macdonald (Leader, Shetland Islands Council), Councillor Robinson, COWI (tunnelling experts), Stantec (lead consultant), Mott MacDonald, Scottish Government, UK Government
Notable line
“As the project moves towards the implementation phase, we are keen to see a similarly ambitious approach from the UK Government in supporting nationally significant connectivity and infrastructure projects in island communities.”
Key Quotes
“I am pleased to advise that the Council has today voted to approve the Outline Business Case for the Inter-island Transport Connectivity Programme (IITCP), establishing a long- term strategy for improving connectivity across seven of Shetland's key inter -island routes.”
“Shetland's current inter-island ferry network faces accepted operational problems, including significantly increased operating costs (rising to £25m for 2024/25), an ageing fleet with an average vessel age of 31.5 years, difficulties in crew attraction and retention, and deck capacity issues on several key routes.”
“… the FLM study has confirmed that tunnel projects are buildable and investable in Shetland.”
“With the IITCP Outline Business Case establishing, for the first time, the financial viability and deliverability of a tunnel project in Shetland, we invite the Committee to consider the transformative economic and social potential of fixed links, as set out in the attached Shetland's Tunnels document.”
“… ferry-based solutions have now reached their practical limits.”
“"a fi xed link would by some distance be the most economically transformative of the options for Unst, and indeed several of the bene fi ts would only emerge with the provision of a fi xed connection." The bene fi ts of a fi xed link for Unst would also be ampli fi ed by a fi xed link across Yell Sound …”
“In the 40 years after the bridge was built, it rose 8-fold”
Source · parliament.uk record ↗