Orkney’s Public Service Reform work progresses following Scottish Government local government and healthcare proposals

Work to explore closer collaboration between public services in Orkney is continuing as the Scottish Government progresses its programme of national Public Service Reform (PSR).

Last month's Programme for Government announcement generated significant interest across Scotland, including proposals to replace the country's 14 territorial Health Boards with 2 Strategic Health Boards and to move from 32 local authorities to a smaller number (6 to 10) of regional authorities, supported by 120 to 160 community-level authorities with greater local decision-making powers.

While these proposals remain subject to discussion and consultation, the Orkney PSR Steering Group – made up of representatives from the Council, NHS Orkney, and Integration Joint Board – has welcomed the Scottish Government's commitment to enable bespoke solutions for island communities reflecting their unique circumstances.

Over the past year, the Steering Group has been working together through a shared programme focused on workforce, service delivery and streamlining governance.

This work has been informed by fortnightly Steering Group meetings, monthly joint leadership meetings between the Council and NHS Orkney, ongoing engagement with the Scottish Government and a leadership event held in June 2026 involving Elected Members, NHS and IJB Board members, and senior officers.

The Steering Group believes the work already underway in Orkney places the county in a strong position, having already contributed to national discussions and in helping shape the solutions that reflect the realities of island communities.

Additional support for the programme will arrive next month when two project officers, funded by the Scottish Government, take up post to help to progress this work and support engagement with local and national partners.

No decisions have been made regarding future governance arrangements or service structures in Orkney. The current focus remains on identifying practical opportunities for organisations to work more closely together, improve outcomes for communities and ensure public services remain sustainable for the future and governed within Orkney.

Councillor Sandy Cowie, Depute Leader of Orkney Islands Council, Davie Campbell, Chair of NHS Orkney, and Joanna Kenny, Chair of the Orkney Integration Joint Board, said:

"The Scottish Government's proposals have understandably generated considerable interest locally, particularly given the scale of the changes being discussed for local government and healthcare.

"For more than a year, public sector partners in Orkney have already been exploring how closer collaboration could help us respond to shared challenges around workforce, service delivery and long-term sustainability.

"We welcome the Scottish Government's recognition that island communities require bespoke solutions. We believe Orkney is well placed to help shape what those solutions could look like and ensure they reflect the needs and circumstances of our communities.

"Our focus remains on improving outcomes for local people and ensuring public services remain strong and sustainable for the future."

Ivan McKee, Cabinet Secretary for Public Service Reform, said:

“The Scottish Government is fully supportive of the local governance work being undertaken in Orkney, led by Orkney Islands Council, NHS Orkney and the Integration Joint Board.

“We are pleased our support has given partners in Orkney the confidence to play a key role in shaping and delivering this vital set of reforms, ensuring our islands’ priorities and circumstances are fully reflected in our reform programmes.”