Source · Select Committees · Scottish Affairs Committee
Recommendation 11
11
Deferred
Paragraph: 81
Lack of reliable, affordable transport hinders remote rural communities mitigating cost of living crisis.
Conclusion
Ferries are existentially important to island communities, but also create knock-on costs for goods and services. The lack of regular, reliable, affordable and integrated transport provision–including adequate and reliable bus services - is one of the main barriers to remote rural communities mitigating the impact of the current cost of living crisis. Service disruption further hinders connectivity, preventing the movement of people and goods, therefore affecting communities’ cost of living in multiple ways. Active travel options provide limited opportunities to ease transport challenges in remote rural locations.
Government Response Summary
The government notes the conclusion, stating that managing and funding transport, including ferries and bus services, are devolved matters for the Scottish Government. It highlights the block grant funding provided to Scotland and mentions existing UK-wide initiatives like the Islands Forum and specific funding for ferry projects (ZEVI, LUF).
Paragraph Reference:
81
Government Response
Deferred
HM Government
Deferred
62. The UK Government notes this recommendation. 63. The UK Government understands the issues with island connectivity and the knock-on impacts to local communities. We also recognise that managing and funding ferry, bus services and active travel are devolved matters and the responsibility of the Scottish Government (and local authorities, where relevant). 64. As set out in Recommendation 2, The UK Government ensures that the Scottish Government is well funded to deliver on these responsibilities, including transport. The 2021 Spending Review set the largest annual block grants of any spending review settlement since the devolution acts. This provided £41 billion per year for the Scottish Government, who are receiving around 25% more funding per person than equivalent UK Government spending in other parts of the UK. That translates into £8.5 billion more per year on average. 65. On top of the substantial share of UK funding they receive, the Scottish Government have also agreed tax powers to increase their funding, as well as the ability to borrow up to £450 million per year to enhance their capital investment. In addition to this, the Scottish Government have tools to manage their budget, including access to the Scotland Reserve to move funding between years. 66. As well as providing funding and tools such as the taxing and borrowing to help fund transport in Scotland, the UK Government is also always willing to offer further support where possible and has taken positive steps in bringing the various stakeholders together to look at common solutions to transport issues. 67. For example, the Department for Levelling Up, Housing & Communities (DLUHC) has set up the Islands Connectivity Task & Finish Group following the third meeting of the Islands Forum which took place in October 2023. The group includes officials from the UK Government and Devolved Administrations, along with representatives from member councils from islands across the UK. It is looking specifically at island transport connections. 68. The Department for Transport (DfT) are working with DLUHC to support the delivery of these Task & Finish Group sessions. The Scottish Government’s Cabinet Secretary for Transport wrote to the Secretary of State for Levelling Up, Housing & Communities soon after the forum, expressing her support for the group. The Task & Finish Group has been meeting since December 2023 to discuss transport connectivity challenges and opportunities across UK islands. 69. Furthermore, the Department for Transport (DfT) has funded several initiatives through UK-wide funds - an additional contribution on top of the previously stated significant block grant the Scottish Government receives. The Zero Emission Vessels & Infrastructure (ZEVI) competition will see Orkney Island Ferries Ltd receive £15.5m for two electric vessels, while the Fair Island ferry project secures £27 million funding via the Levelling Up Fund (LUF), using powers under the UK Internal Market Act.