Budget detail shows ferry funding secured
Date: 13 January 2026
Time: 11:00 AM

Orkney Islands Council Leader Heather Woodbridge has welcomed the Scottish budget announcements made by Cabinet Secretary for Finance Shona Robison in the Holyrood Chamber this afternoon – with early indications being that funding for Phase 1 for Orkney’s Ferry Replacement Programme has been secured.
Phase 1 of the Ferry Replacement Programme is for three replacement 60m vessels serving the islands of Eday, Sanday, Stronsay and Westray, providing increased passenger, vehicle and freight capacity and significantly improved passenger facilities, with accessibility noted as a key requirement for the design.
Councillor Woodbridge and OIC Chief Executive, Oliver Reid, have met with Government Ministers and officials over a number of months in an effort to secure funding for the Programme through the Ferries Taskforce, set up by First Minister John Swinney.
Whilst a specific ‘Orkney’ announcement was not made by the Finance Minister in her budget speech, a £7.6bn country-wide capital investment programme was announced, with an allocation for Orkney included within that.
Orkney’s overall allocation towards ferries will be a mix of revenue and capital funding – meaning that work can continue to be progressed.
Speaking this evening, Councillor Woodbridge said: “This really is fantastic news for Orkney’s plans for a new internal ferry fleet – and follows on from some incredible work from this organisation, all aimed at building a strong relationship with the Government, as well as a robust and achievable business case.
“I would like to thank Cabinet Secretary Shona Robison, Minister for Agriculture and Connectivity Jim Fairlie, as well as Scottish Government officers for their commitment to this process, and their understanding of the challenges that we faced. This was truly cemented when Ministers made visits to Orkney in order that they could see for themselves the challenges we were facing.
“At the moment, our team are working through a procurement process whereby we are identifying shipyards with the interest in, and potential for, working with us. With the sure footing of today’s announcement from the Scottish Government, next month we can move to working directly with those shipyards on a contract to build ferries.
“Today’s announcement confirms that new internal ferries for Orkney are now in motion, with work already underway to make them a reality. Assuming these budget proposals are agreed by Parliament, this is a momentous day for Orkney.”
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Category:
- Ferry Replacement Programme